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In the trading world, an index measures the price performance of a basket of stocks or securities, typically used as a benchmark to track performance as a comparison to the returns generated by mutual funds, portfolio managers, etc.
An index in trading is a statistical measure that represents the performance of a basket of stocks or securities, serving as a benchmark for market performance. It’s used to compare the returns of mutual funds, portfolios, or individual investments against the broader market. Popular indices include the FTSE 100, S&P 500, and NASDAQ, each offering insights into different market segments.
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