Stock Indices track the performance of a group of stocks and are highly responsive to economic events. For example, the German Stock Index DAX or Germany 30 represents the value of the 30 largest companies listed on the Frankfurt Stock Exchange. When you trade Index CFDs, you can capitalise on price movements without actual ownership of the underlying assets. For instance, if you assumed that the price of a stock index would rise, you would place a BUY order, but if you believed it would drop, you order a SELL. If the market moved towards the direction of your placed order, you would make a profit, otherwise, you would make a loss.
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