Spot Index Trading
An index serves as a benchmark for evaluating the performance of a
specific market or economic sector. The value of an index reflects the
overall performance of the constituent stocks and is calculated as a
weighted average. Unlike individual stocks, indices provide an
opportunity to speculate on specific markets, making them particularly
appealing to investors seeking to navigate the dynamic conditions of
various economic sectors.
FTMO employs a "lot" trading mechanism, wherein all index products are
based on standard contracts. These standard contracts accurately
replicate the market value—or a portion thereof—of the corresponding
index. By simplifying the process, investors can engage in trading with
a standard contract that corresponds to a fixed margin.