Stock Market Indexes and Fair Value Indications
Indexes and their relationship to "fair value" give investors a hint on how the market will open. The relationship between a market index and its futures contract is referred to the mentioned above fair value.
Depending on a comparison between the futures and the fair value, traders make predictions about how the market will open. For instance, if the futures are higher than the fair value, the market will open at a higher level than the previous trading day. On the other hand, if the futures are lower than the fair value, the market will open at a lower level than the one from the previous trading day.
In order to make more accurate predictions the relationship should be examined as close to the opening of the market as possible since the values change over the night. Information can be obtained from the various online sources, or from the media, which reports the values before the opening of the market.
To be a successful investor you need two main things - the knowledge and the right trading platform. For a trading platform we can recommend try you Zecco and TradeKing
.
Zecco offers free stock trades, no account minimum, real time quotes, trading community, and is also insured and protected against loss by SIPC.
Opening a Zecco account to benefit from $0 Stock/ETF trading is a smart idea. Free stock trades allow you to preserve more of your wealth and save money, which you can invest instead of paying brokerage commissions.
TradeKing has been rated #1 Discount Broker by SmartMoney’s (the Wall Street Journal Magazine) annual US broker survey. It was also awarded the highest 4-star ranking in Barron's survey of Best Browser-Based Online Brokers. TradeKing platform features real-time portfolio information, advanced order entry, stock, option and mutual fund screeners, customized charting and alerts, volatility charts, a pricing probability calculator, free research and integrated news, and interactive educational information. Open a TradeKing account here
| Rate this article : Low | High |
- Stock Investing vs. Saving
- Mutual Funds vs Individual Stocks
- Classes of Assets - Asset Class Definition
- Investment Goals Planning
- Stock Investing Basics
- Bond Definition and Concepts
- Zero Coupon Bonds Basics
- Convertible Bonds Basics
- US Treasury I Bonds Basics
- Discount Stock Brokers vs Full Service Brokers
- Financial Advisor Job Description
- Certified Financial Planner Designations
- Stock Broker Categories
- Types of Brokerage Accounts
- Stock Buyback Reasons
- Stock Basics
- Stock Dividends Basics
- Stock Market Cycles
- Federal Reserve Board (Fed) Functions and Importance
- Stock Market Sectors Classification
- Stock Split Basics
- Stock Market Indexes and Fair Value Indications
- Stock Share Types
- Bid and Ask Prices
- Stock Trading Basics and Order Types
- Market Makers Role and Responsibilities
- NYSE and Market Specialists
- Company Market Capitalization
- Stock Order Types
- Setting Stock Prices
- Newspaper and Online Stock Quotes
- Stop Loss Order Fundamentals
- Trailing Stop Order Basics
- Book Value Explanation
- Dividend Yield Explanation
- Stock Price Influences
- Advance Decline Ratio Basics
- Value Investing Basics
- Rising Interest Rates and their Effects
- Foreign Stocks Basics
- Asset Allocation Basics
- Stock Market Movements
- Earnings Season Basics
- CPI Basics
- Inverted Yield Curve Implications
- IPO Basics and Strategies
- Option Basics and Types
- Consumer Price Index Basics
- Stock Market Investing Basics
- Why Do Companies Go Public
- Introduction to Stocks
- Stock Price Volatility
- Large Cap Stock Characteristics
- Small Cap Stocks Characteristics
- Foreign Stock Characteristics
- Technology Stock Characteristics
- Fundamental Analysis Technique Basics
- Technical Analysis Basics
- Importance of Current Assets and Current Liabilities
- Price/Book Value Advantages and Disadvantages
- Understanding Return on Equity and Return on Assets
- Understanding Inventory Turnover Ratio
- Price to Earnings Growth Ratio (PEG) Explanation
- Price to Earnings (P/E) Ratio Basics
- Price to Sales Ratio (PSR) Explanation