Trade Stock Baskets with FXCM
FXCM now offers Stock Baskets that allow you to speculate on the performance of a certain sector without having to open exposure on each stock individually. Trading a stock basket is simple, if you think the performance of that sector will improve, you go long (Buy), if you think the sector will weaken you go short (Sell).
What is an FXCM Stock Basket
FXCM's Stock Baskets contain a number of individual stocks relating to a specific sector.
At the time of the baskets inception, each stock was given a value in $ terms (US$ for US Stock Baskets, HK$ for HK Stock Baskets). The baskets will from that point forward measure the collective performance of each of the correlated components.
FAANG's original price was $2,000 and Netflix represented $400 of that $2,000
If today that same amount of Netflix shares that were worth $400 is now worth $415, that stocks contribution to FXCM's FAANG price will be 415.
The contribution of each of the stocks will formulate the current rate of FXCM's FAANG Index.