TRADING GLOSSARY
Index rebalancing
Index rebalancing adjusts constituent weights to keep an index aligned with its methodology, usually on a published schedule. Changes to membership are often called reconstitution, although providers may combine membership reviews and weight adjustments.
EXAMPLE
In a hypothetical equal-weighted index, a constituent's weight rises from 5% to 7%; the scheduled rebalance resets it to 5%.
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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