Excuse me, i am newbie bout the investment things...

plz tell me wut actually index trading... i am more interested in stock trading, am i must aware of index trading?

One more, is the option methods for commodities and stock almost the same?

for my understanding..

the index is calculated by the selected 100 stock from the market. any of this 100 stock up down will afftect the index... in my point of view.. index is a group of stocks.

Yup, IceBikers has explained.

Index is a group of stock made up.

So if you are trading i.e. buying or selling index, that's mean you are buying the whole bunch of stocks, instead of buying while bunch individually, you buy/sell the index.

If you intend to buy/sell individual stock, then you don't need to care much about the index.

Index somehow is like a broader market condition indicator which its purpose is to reflect overall market condition.

i heard commodities also have index, am i correct?

Another things, how bout options method for commodities and stock, is it less likely to be the same?

Almost all got indices to reflect their market situation.

We have tons of indices out there, from shipping rate, commodities to market volatility index (in US).

Ok.. i understand now... But how bout the methods/strategies of index trading, is it similar for momodities and stocks?

Different investment tool has its own nature or various factors that influent its pricing.

In market, there are tons of methods and strategies out there.

No, i'm not talking about tools, i means is the basic method for index trading is similar (for both commodities and stocks?

Roughly the same.

Which are interesting. trade index or invest in stocks?

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Added on February 2, 2009, 2:46 amThat's mean we need more money to trade index rather that buying individual stocks, am i correct?

This post has been edited by gecodine: Feb 2 2009, 02:46 AM

It depends how you trade the index. Index can be traded through
1. Index ETF
2. Index futures.
3. Call/put option of index (no available in Malaysia)

But generally buying index is more cheaper than buying a bunch of individual stocks. Just like KLCI has 100 components stock, instead buying 100 stocks which might cost ten to hundred ot thousand, you can buy the index futures (FKLI) with initial margin of around 5K or so and gain/loss Rm50 on every point.

Then how to buy and where to buy? do maybank2u provide this service or i had to go through a third party?

My fren going to work at some company deal with futures do it mean it deals with index futures?

No Index is indices,STI and Dow Jones are Index