Stock indices are popular among all types of traders, including those who like to trade binary options. Because of this, many binary options brokers give their clients the chance to trade binary options with major stock indices as underlying assets. In addition to that, a number of binary options brokers also let their traders trade indices in the traditional way in the form of CFDs. Lastly, some brokers even offer both alternatives for their clients.
Stock indices are great assets for both traders and long-term investors because they let traders take a bet on the direction of the stock market as a whole, without exposing themselves to risks associated with specific companies. And in the form of CFDs, they are also perfect as short-term trading assets since even the slightest price change can translate into large monetary gains with the help of leverage.