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Market Indices - Australian Stock Market Index

The stock index or stock market index is a measurement of a section of the stock market. Indices provide the market players to gain an insight into the performance of various asset classes and a plethora of financial instruments. Letu2019s have a closer look at the types of indices in Australia.

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Market Indices - Australian Stock Market Index

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  1. Market IndicesAustralian Stock Market index

  2. Table of Content: • What are Indices • Key features of indices • Types of indices • Stock Market Indices – Explained • How to Trade • How Kalkine Can Help in Trading?

  3. What are Indices Indices is the plural form of index and has several definitions. When referring to financial markets and trading, indices defines the price performance of an asset, sub-asset or a group of shares. Indices are directly related to the stock market and the performance of shares listed on that market.

  4. KEY FEATURES OF INDICES Indices are designed as measures of performance of an asset. An index is often published to give stakeholders an understanding of how governing index calculation are made. This means that constituent securities must be relatively easily tradeable so that index tracking portfolios can be created.

  5. Types Of Indices There are six broad types of indices:

  6. Stock Market Indices – Explained • Capitalisation Indices:Capitalisation indices represent the sum of the market capitalisations of the companies making up the index. The weights assigned to companies in the index depends upon the market capitalization of that company. • Fixed Income Indices: These are those indices which measure the performance of Bond markets as well as the money market instruments floated by the issuer to full fill their near term & short-term funding requirements. • Residential Property Indices: This index is just like any other index which provides estimates of changes in residential property prices in cities of Australia and related statistics. • Sector indices: Sector indices tracks the performance of a specific stock or industry over a period. A company is allocated a sector or industry which is based upon the principal business activity undertaken by that company. • Strategy indices:Strategy indices track the performance of a particular investment strategy. That investment strategy may involve selecting companies on attributes other than their size or industry. • Volatility indices:The S&P/ASX 200 VIX (A-VIX), is the indicator of the implied volatility in the markets and is also a market sentiment indicator and monitor the near-term volatility which is expected in the Australian stock markets i.e. volatility in the S&P/ASX 200 over the next 30 days.

  7. How to Trade Indices: When deciding on the index or Indices you would like to trade, it is important that you spot potential trading opportunities and recognise patterns within your chosen market. Market news and research can help you to identify trends, feel confident in understanding how and why prices move within your chosen market(s). Once you’re confident that you understand the market, you’re ready to start trading.

  8. How Kalkine Media Can Help you? Check out all recent coverage of stock market news and updates on Kalkine Media. View all the news and updates of ASX Stock Market Follow On: • Twitter: https://twitter.com/kalkineau • Facebook:https://www.facebook.com/kalkineau • Website:https://kalkinemedia.com/ • ASX Discussion Forum: https://forum.kalkinemedia.com/

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