FINOSUTRA

Introduction to Index What is index Derivatives.   Index is a statistical indicator that measures changes in the economy in general or in  particular areas. In case of financial markets, an index is a portfolio of securities that  represent  a  particular  market  or  a  portion  of  a  market.  Each  Index  has  its  own  calculation methodology and usually is expressed in terms of a change from a base  value. The base value might be as recent as the previous day or many years in the past.  Thus, the percentage change is more important than the actual numeric value.  Financial  indices are created to measure price movement of stocks, bonds, T‐bills and other type  of financial securities. More specifically, a stock index is created to provide market  participants  with  the  information  regarding  average  share  price...