Many of my clients this week have been voicing their opinion that the lack of significant data and, excluding Wednesday, a slight lull in earnings reporting from the UK’s blue chip companies, has resulted in a slow week for some of their trades. However, over the past 5 days both Wall Street and the UK-centric have posted fresh all-time highs, while the UK 100 rallied to its highest level since January 17. I’ve also had client voicing their concerns that while indices may be nearing all-time highs, their stocks are not.

As a result, they feel like they have missed out on some of the largest market moves in several months. What these clients might not have realised, however, is that by trading with us at Accendo Markets, they also have the opportunity to trade indices directly.

Trading indices is not only a way to invest outside of your current stock portfolio without influencing your current holdings, but also gives you the opportunity to trade events and news that may have little or no bearing on your portfolio.

Indices are futures, meaning that they are traded throughout the working week without closing. Opening in Asia on Sunday night, they trade continuously until the New York Stock Exchange closes its doors late on a Friday night.

As a result, you have the ability to trade 24 hours, acting on the very latest news emerging from across the globe as and when it happens. Whether this is the announcement of international macroeconomic data from Asian economies such as China and Japan, or reacting to the latest tweet from US President Donald Trump, opportunities can arise at any time of day.

The influence of external futures markets, including Foreign Exchange (FX), Crude Oil, Gold and other commodities means that by the time the London Stock Exchange opens at 8am, there are a whole host of reasons why indices may be trading higher or lower whilst your portfolio may remain relatively unchanged in early trading.

This explains why the UK’s UK 100 , comprised of 100 companies where 70% of earnings are made in foreign currencies, is regularly at odds with the performance of the , which has a more UK-focused listing. It also explains how surging Oil prices this week have resulted in US indices rallying significantly, despite some having far less exposure to Oil producing companies than other.

One final benefit of trading indices is the ability to invest globally. Not only do we provide access to the largest of markets in the US and the UK, we also offer you the opportunity to trade major European indices such as the German Dax, the French Cac and the Italian MIB, while for night birds we also trade Asian indices such as the Australian ASX.

So while your current portfolio might be suffering from the winter blues, trading indices could provide the opportunity for you to add a string to your bow.

Do you want to expand your knowledge of trading indices? Perhaps you’d like some tailor-made research on the world’s largest bourses, providing insight into exactly where they are trading and why! Our daily Index Focus publication focuses on three of the largest indices on the plant: the UK 100 , the DAX 30 and the Dow Jones, while also looking at the Gold market. To receive this publication, and more, for the next two weeks, sign up to our research here and expand your trading repertoire today.

Joe Nguyen, Trader, 10 February 2017