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🌍 Markets · Beginner · 7 min read · Lesson 16 of 42 · Free with an account

What are stock indices? US 500, Nasdaq, JSE Top 40 and how to trade them

An index tracks the value of a group of shares in one number. The S&P 500 follows 500 large US companies, the JSE Top 40 the 40 largest companies on the Johannesburg Stock Exchange. When people say “the market went up today”, they usually mean an index.

The indices traders watch

IndexWhat it tracksBroker symbols you may see
S&P 500500 large US companiesUS500, SPX500
Nasdaq 100100 large non-financial Nasdaq companies, tech-heavyNAS100, USTEC
Dow Jones Industrial Average30 large US companiesUS30
FTSE/JSE Top 4040 largest JSE companiesSA40
DAX 4040 large German companiesGER40, DE40

See the S&P 500 sector heatmap live on our pre-session page.

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Questions people ask

What is the best index for beginners?

Many beginners start with the S&P 500 (US500) because it is liquid, widely covered and moves on well-known news.

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Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.