Difference between a Stock Exchange and an Index ❓🤔

Difference between a Stock Exchange and an Index http://www.financial-spread-betting.com/strategies/strategies-tips.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! This is a 'stock market basics' video for beginners. What is the difference between a stock index and a stock exchange? How is a stock market index calculated? The difference between an exchange and an index. It is easy for newer traders to get confused and I can see why. An index is a number that is made up of a basket of stocks that we call constituents that are weighted to provide people an easy way to monitor that group of stocks. The number you get cannot be traded directly, you can't trade it because its a number that is derived. But you can trade derivatives that are based on the index like spreadbetting, CFDs, futures contracts, ETFs..etc An exchange is where a stock goes to trade - or where a futures contract trades. It is a company that sits in the middle and allows sellers and buyers to transact with each other. An exchange could be the London Stock Exchange.