Indices are used to track the performance of a basket of securities. For example, if you are trading indices from the stock exchange index, which comprises of several stocks, then you are essentially opening positions on several stocks at once. This is immediately a more economical and less stressful way to diversify your investment portfolio across different sectors and trade in a basket of stocks.
Index CFDs cover all the well-known indices from around the world, enabling traders to partake in the world markets, including investing the Aussie 200 or the German DAX.