An index is a way to track the performance of a big group of assets in a standardized manner. It is used to measure the performance of different securities bundled together, which all replicate a certain area of the market. The index can be broad-based like SP500 and Dow Jones, or there can also be more specialized indexes that only track a specific segment or industry.

CFD indices or index CFDs are traded with leverage and margin, which means, you only need to commit to depositing a small initial investment to start the trade. Margin trading gives you a wider market exposure since your profit and losses are calculated according to the full-size position and not just the total funds you use for margin.

One of the effective ways to trade indices is through Contract for Difference (CFDs) which allow you to profit from both rising and falling prices of the market. You can open a short position if you think the index will eventually fall or you can open a long position if you think the index will end up rising.

The three major indices that are the most followed include SP500, Dow Jones, and Nasdaq.

Forex trading is buying, selling, and exchanging currencies with the aim to make a profit. Index trading refers to trading a group of stocks together that make up for the index.

Forex is currency exchange trading. Whereas, with indices, you trade different types of indices together. Both of them have their own advantages and disadvantages. Instead of choosing one over the other, you can trade in both currency and indices to diversify your portfolio.

Both indices and indexes mean the same thing. The only difference between the two is that the index refers to a single index, whereas indices is a plural form that refers to more than one index.