TRADING GLOSSARY
Index constituent
An index constituent is an individual security or other component included in an index under the provider's selection rules. Each constituent has a weight that determines how much its price movement influences the index.
EXAMPLE
In a hypothetical index, a share with a 10% weight rises 2%; with other prices unchanged, it contributes approximately 0.2 percentage points to the index return.
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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