Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Benchmark is a comparative tool used as a point of reference against which to measure your investment portfolio’s performance. By using a benchmark that’s in line with your risk tolerance and the nature of your investment, you should gain a better understanding of how your portfolio is doing in comparison to the market. 

Benchmark definition

Benchmark is a comparative tool used as a point of reference against which to measure your investment portfolio’s performance. By using a benchmark that’s in line with your risk tolerance and the nature of your investment, you should gain a better understanding of how your portfolio is doing in comparison to the market.

Dozens of different calculated values are used as benchmarks, ranging from the more commonly known equity indices, such as FTSE 100 or the Dow Jones, to lesser-known bond indices such as the Barclays Capital Aggregate Bond Index.

For example, if your investment strategy focusses on large UK stocks, it might be useful to compare your portfolio’s performance with the gains or losses on the FTSE 100 as a whole. 

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