A stock index is a statistical measure that reports the performance of the stock market. Each stock index has its own way to weigh and average various stocks. The index is provided by the broker company in the form of bid-offer price spread. The investing party stakes the direction of movement of market price.

The most commonly traded stock index is Hong Kong Hang Seng Index, Japan Nikkei Index and US Dow Jones Index. Trading stock indices offers great benefits to investors, as they can generate huge profits; no currency risk as betting is done on per point basis.