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HomeRight Arrow Quick QuestionRight Arrow What is an index in trading?

What is an index in trading?

Vantage Updated Fri, 2026 August 21 07:16

An index is a statistical measure that tracks the performance of a group of assets — typically stocks — by combining their prices into a single value. It gives traders and investors a snapshot of how a market or sector is performing at any given time. The S&P 500, for example, tracks 500 large US companies and is widely used as a benchmark for the American stock market.

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