Index CFDs look simple but indeed an effective way for a trader to profit from the direction of the indices. Traders' choices vary: Some prefer short-term swing trading methods, while others prefer long-time positions, which will be open for weeks or even months.
Stock Index CFDs are a great entry-level instruments. Index trading takes place on many different indices throughout the world. But the most popular ones are the US30, SP500, DE30 and the UK100.
The most important indicator of an index is the number of points (percentage in points, actually) that it has moved up or down since the market open. Also, countries' overall performance highly affects the indices. For instance, if you believe that the economic outlook for Germany is positive and will be positive in future too, you would buy DAX considering that German companies would show a good performance and make DAX move upwards.