Example of a trade transaction in the indices market
Stock indices are very responsive to any fundamental changes taking place in the political or economic life of both individual states and the world. And the reaction of the US market to the results of the presidential elections in the United States, held on November 8, 2016 is a vivid confirmation of this. The victory of Donald Trump, whose entire election campaign was built on the promise of applying protectionism in the state administration of the economy, and held under the slogan 'Make America Great Again!', has become one of the main reasons for the largest growth of all American stock indices since the global financial crisis of 2008, what added more than 40% on average over 14 months. Within one year you could earn $ 23250, having invested $ 94,250 initially. Having bought one futures contract ($ 5 for 1 pips) at November 2016 on the DJIA Mini stock index at a price of $ 94,250 with a quotation of $ 18,850 and having sold it in a year at a price of $ 117500 with a quotation of $ 23,500, you could earn 4650 points of profit, what equals to $ 232,250.