Index Trading, Refined

At Hudson Ridge, we bring clarity and confidence to index trading. Understanding indices is essential for navigating the stock markets—they reflect the collective performance of a curated group of companies, often by sector or geographic region. Selecting the right index is a strategic first step for any investor entering this space.

In the sections below, we’ll explore what indices are, how they function, and why they’re an intelligent tool for diversifying exposure. By the end, you’ll have a strong foundation and the confidence to approach index trading with a strategic mindset.

Indices, by definition, measure the performance of a specific group of shares traded on a stock exchange. For example:
-The NASDAQ tracks over 3,300 companies and is the most actively traded exchange in the United States.
-The FTSE 100 comprises the largest 100 companies listed on the London Stock Exchange.
-Germany’s DAX follows 30 major blue-chip companies listed on the Frankfurt Stock Exchange.

When the collective stock values of an index's listed companies rise, the index gains value. When they fall, so does the index. Index trading offers a strategic advantage: instead of opening multiple positions across individual stocks, a single index position allows you to gain exposure to an entire market sector, region, or economic narrative. It’s efficient, powerful, and ideal for investors seeking both diversity and momentum.

Available Indices on Hudson Ridge

Trade the world’s most influential indices with precision and ease on the Hudson Ridge platform:

• AEX: Amsterdam Exchange index

• ASX: Australian Securities Exchange

• CAC 40: France’s premier equity index

• DAX: Germany’s leading stock index

• Dow Jones: Tracks the 30 most significant companies in the U.S.

• IBEX 35: Spain’s benchmark stock market index

• NASDAQ 100: Includes 100 of the largest non-financial companies in the U.S.

• NIKKEI 225: Tokyo Stock Exchange’s primary equity index

• SMI: Swiss Market Index

• S&P500: Measures 500 large-cap U.S. companies

• STOXX50: Tracks 50 blue-chip companies across the Eurozone

• FTSE 100: The U.K.’s leading index of top-listed firms.