TRADING GLOSSARY
Equal-weighted index
An equal-weighted index assigns the same weight to every constituent at scheduled rebalancing points. Between rebalances, weights drift as share prices change, so constituents do not necessarily retain equal weights throughout the period.
EXAMPLE
In a hypothetical equal-weighted index of 20 companies, each receives a 5% weight at rebalancing; subsequent price movements cause those weights to diverge.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure