OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Index'

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What is Index in Options Trading ?

Index
An index is a measurement of the sum total of prices calculated with a weighting of different percentages among a group of stocks, to provide an indication and consistent measure of the overall market performance. It usually refers to a measure of change in the market. This market change is assessed by traders to measure how much an index has fallen from the previous day.




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