Indices are essentially statistical measures that track the performance of a group of assets. Learn more here.

From the Dow Jones Industrial Average (DJIA, or simply the Dow) to the Hang Seng Index (HSI), the world’s major stock market indices are vital benchmarks that reflect the performance of leading companies across regions. For beginning and veteran traders alike, such indices act as overarching market bellwethers that provide deeper insights into market trends and serve as tools for trading strategies, risk management and portfolio diversification.

Given their mass popularity, indices are widely traded in the forms of futures, options and 

 (ETFs), enabling traders to effortlessly hedge against volatility or speculate on market movements through their preferred instrument. In this article, we’ll explore the world’s biggest market benchmarks, their composition, significance in trading and their role in shaping global financial markets.

Indices are essentially statistical measures that track the performance of a group of assets. For example, by referring to the three major US indices, we can immediately tell how a particular segment of the market is performing, thanks to the snapshot provided by these indices. 

At their core, these indices provide a way to gauge market trends, manage risk and diversify portfolios by offering a broad view of different sectors or asset classes. They’re widely used in financial markets for investment strategies, and as benchmarks for evaluating performance.

While more popular indices typically track the prices of stocks, traders may also consider trading indices that take into account the performance of other asset types, such as commodities and fixed-income instruments (e.g., bonds).

How indices work — mechanics, composition and weightage

Beyond simple tracking, indices also serve as the basis for numerous financial products that enable traders to participate in broad market movements without needing to purchase individual assets. This unmatched level of accessibility makes indices crucial for both institutional and retail traders. To go one step further, the construction of an index — including the specific assets being included, and their weighting — can significantly impact the index’s behavior, and the extent to which it effectively represents its target market.

Overall, understanding these construction methodologies is vital for traders who want to accurately interpret index movements and make informed decisions. We’ll go into more detail on the inner workings of index trading in the subsequent sections of this article.

Index trading involves speculating on the price movements of a group of assets without directly owning them. This is typically achieved through financial instruments, such as contracts for difference (CFDs), futures or options. The following section provides a detailed explanation of the mechanics involved.

As previously mentioned, indices are composed of various assets, such as stocks, commodities or bonds, and their performance is tracked using different weighting methods. The most common methods include the following.

Now that you’re familiar with the technicalities involved with index composition, let’s dive deeper into the instruments involved with the trading of indices.

New to trading indices? No worries. Here’s a quick four-step process to help you get started.

In summary, index trading provides a way to participate in broad market movements through various financial instruments. It offers diversification and flexibility but requires careful 

, given the volatility associated with index trading.

Trading indices offers several compelling advantages that make them an attractive option for both novice and experienced traders. The following reasons are worth considering.

Indices can be categorized based on their coverage, weighting method and focus. 

Following are some of the main types of indices.

Index prices are influenced by a variety of factors that can be broadly categorized into economic indicators, company performance, market sentiment and external events. These factors interact dynamically, influencing the overall performance of indices and shaping market trends.

For traders looking to get started with index trading, 

 with deep liquidity and competitive spreads. For a limited time (from Mar 13 through Apr 12, 2025), we’re running a 

 in which traders can enjoy zero fees on selected index pairs, making it even more cost-effective to explore index trading.

Ultimately, trading indices can seem daunting, given their depth of assets and the mechanics involved. For example, the S&P 500 comprises hundreds of stocks, each with different amounts of weightage. If mega-cap stocks like Tesla were to face some form of volatility, there would definitely be an impact on the index. As such, beginning traders who are new to index trading must 

 prior to transacting with indices, given the risks involved with the use of leveraged instruments.

For those with a longer time horizon in mind, trading indices can certainly be useful, especially if you’re intending to 

 your entries over time when building up your position. Given the extent of diversification involved and the sheer amount of liquidity present, it certainly would make sense for any trader with a long-term bullish inclination to trade indices and hold their ETFs for the long haul.

With a reliable platform like Bybit Gold&FX, you’ll practically be spoiled for choice when it comes to navigating the diverse world of indices and other financial instruments. By empowering traders with access to real-time data, advanced charting tools and a user-friendly interface, Bybit Gold&FX helps traders make informed decisions when analyzing market trends and execute trades with precision.

Whether you're interested in tracking the performance of major stock market indices, exploring commodity indices or diversifying your portfolio with forex and gold, Bybit Gold&FX offers the necessary resources and support. The platform's focus on security and transparency provides traders with peace of mind, allowing them to concentrate on their investment strategies and capitalize on market opportunities. In essence, it transforms the complexities of index trading into an accessible and sleek experience.

Intermediate

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Indices: Trading the world’s biggest market benchmarks

Bybit celebrated the second anniversary of the Bybit Card at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch.

The S&P 500 dropped 1.39%, entering correction territory amid Trump’s tariff threats and trade war concerns. Gold surged to a record $2,988, driven by trade uncertainty, recession fears, and Fed rate cut expectations. The Coindesk Indices, which tracks the broader crypto market, fell by 0.90%, with Bitcoin and Ether down by 3.36% and 2.63% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is S, up 7.9% after 0xGasless launched AgentKit on Sonic, enabling AI-powered, gasless on-chain automation.

Sonic Labs (S), established in 2018, is an EVM-compatible Layer 1 blockchain built from Fantom, delivering over 10,000 transactions per second. Its native token, S, replaces FTM at a 1:1 ratio. The network prioritizes high performance, interoperability, and developer incentives. 

, enabling AI agents to execute on-chain actions with NLP-powered automation and gasless transactions via smart wallets. Developers can use Sonic AgentKit to build DeFi copilots or automate blockchain tasks and contribute custom tools through its open-source GitHub.

Check out the latest prices, charts, and data of 

Bybit celebrated the second anniversary of the 

 at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch. The exchange announced a limited-edition Premium Metal Card coming in 2025, alongside enhanced user experience features such as an improved rewards program, stronger fraud protection, and wearables connectivity. Backed by Mastercard’s global network, the Bybit Card supports multiple cryptocurrencies and offers seamless payments at any Mastercard-accepting merchant. Bybit reaffirmed its commitment to expanding crypto financial solutions and bridging digital assets with everyday transactions.

Yesterday, BTC Spot ETFs saw $180.9M in net outflows, with GBTC losing $12.7M and non-GBTC funds dropping $168.2M.

 $EDGE tokens to active traders on Solana and EVM chains. Users who traded on Jupiter, Odos, Hyperliquid, and more can check eligibility and claim by depositing funds and trading $1K spot volume via TWAP. Airdrop claims open in 19 days, with a raffle for 500 users to win 100K $EDGE tokens.

Beginner

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Bybit marks Bybit Card’s second anniversary with new features and expansion plans

Dogecoin Spot ETFs would offer a regulated vehicle for investors to capture Dogecoin's price movements without directly managing the cryptocurrency themselves.

 is defying expectations, transitioning from a crypto punchline to Wall Street legitimacy. In a landmark shift, the US Securities and Exchange Commission (SEC) has formally acknowledged Spot ETF applications for DOGE from heavyweight asset managers, including Grayscale and Bitwise, potentially catapulting the Shiba Inu–themed token into regulated markets. 

 (ETFs) would cement Dogecoin’s status as a serious investment vehicle, challenging perceptions of meme coins as fleeting novelties. 

This article delves into the mechanics of a Dogecoin Spot ETF, the current state of applications, their impact on the crypto market and the broader implications of such financial instruments.

A Dogecoin Spot ETF is a proposed exchange-traded fund that would directly hold Dogecoin as its underlying asset, allowing investors to gain regulated exposure to DOGE’s price movements without owning the cryptocurrency outright.

A Dogecoin Spot ETF would mirror the price movements of Dogecoin by holding the cryptocurrency directly, thereby enabling investors to capture its market performance without the complexities of purchasing, storing or managing the digital asset themselves.

Asset managers — in this case, Bitwise and Grayscale — would securely store actual Dogecoin tokens in 

 that often use cold storage solutions to reduce hacking risks. This responsibility is entrusted to custodians such as Coinbase Custody, which would safeguard Bitwise's Dogecoin holdings. These custodians specialize in cryptocurrency storage and employ robust security measures, such as multi-signature wallets and offline storage, to ensure the fund's value remains closely aligned with Dogecoin's current market price, while protecting the assets from potential threats.

Authorized Participants — usually large financial institutions — play a key role in maintaining this alignment by facilitating the creation and redemption of ETF shares. When demand surges, these institutions purchase Dogecoin from the open market and deposit it into the fund in exchange for newly issued shares. Conversely, they redeem shares by returning them to the fund for an equivalent amount of Dogecoin. This dynamic mechanism helps ensure that the ETF’s share price consistently reflects the underlying asset’s value.

Once issued, Dogecoin Spot ETF Shares would be traded on traditional stock exchanges, providing investors with an established and secure platform to gain exposure to Dogecoin. The ETF’s net asset value (NAV) would be determined by a comprehensive pricing mechanism that continuously reflects the current market price of Dogecoin. This process relies on the 

, which aggregates data from multiple reputable cryptocurrency exchanges. 

Using this standardized reference, the ETF ensures that fluctuations in Dogecoin's price — driven by market supply, demand and investor sentiment — are accurately captured. Consequently, the NAV is updated in real time, so it would provide investors with a transparent and precise representation of the fund’s true market value.

With this structured approach, a prospective Dogecoin Spot ETF promises a streamlined, regulated avenue for investors to participate in the dynamic cryptocurrency market, seamlessly integrating digital asset exposure with traditional financial systems.

In January 2025, REX Shares (in collaboration with Osprey Funds) filed with the SEC, seeking approval for a Dogecoin Spot ETF. The following month, Grayscale Investments advanced its crypto offerings by submitting SEC Form 19b-4 to launch its own Dogecoin Spot ETF, signaling an intent to diversify beyond traditional assets like Bitcoin and Ethereum. Shortly thereafter, Bitwise Asset Management, Inc. filed both S-1 and 19b-4 registration forms for a similar ETF, with its proposed fund set to hold Dogecoin as the primary asset and determine its net asset value using the CF Dogecoin-Dollar Settlement Price benchmark.

The SEC has officially acknowledged these filings, initiating a comprehensive review process. The Commission is known for its cautious approach in approving cryptocurrency-based ETFs, due to concerns over market volatility, liquidity and investor protection. However, this acknowledgment suggests a willingness to assess the potential of integrating Dogecoin into regulated financial products. The approval process is expected to be methodical, potentially taking up to 240 days from the initial acknowledgment. Bloomberg analysts 

Despite these promising regulatory developments, market reaction has been mixed. While the filing of Dogecoin Spot ETF applications has generated significant interest among investors, Dogecoin’s price experienced a decline after an initial increase following the announcements, indicating that investor sentiment could be influenced by broader market dynamics beyond ETF-related news.

Current impact of Dogecoin Spot ETF applications on the crypto market

Following the ETF application announcements, Dogecoin's price experienced significant fluctuations. Initially, there was a surge in optimism, with 

 within 24 hours (as of Feb 14, 2025) as investors anticipated potential institutional adoption. However, this uptick was short-lived, and within a week, Dogecoin's price declined by over 7%. This retracement underscores the inherent volatility of the cryptocurrency market — and suggests that while ETF filings can boost confidence, they also introduce speculative dynamics that may lead to rapid price corrections.

This mix of enthusiasm and caution among investors reflects the duality of a market in transition, balancing prospects of institutional legitimacy and the realities of speculative volatility. On the one hand, potential approval of a Dogecoin Spot ETF is viewed as a gateway for mainstream and institutional investors to engage with DOGE, potentially leading to increased liquidity and market stability. On the other, the subsequent price decline following the ETF announcements indicates that the market remains sensitive to speculative trading and profit-taking behaviors. Investors are advised to approach such developments with a balanced perspective, considering both the opportunities and risks inherent in cryptocurrency markets.

What will it mean if a Dogecoin Spot ETF application is approved?

Should the SEC approve a Dogecoin Spot ETF, it would mark a significant milestone in legitimizing meme-based cryptocurrencies within a traditional financial structure. Such an ETF would allow investors to gain direct exposure to Dogecoin's price movements through traditional investment platforms, which in turn could lead to increased institutional participation as it provides a regulated and familiar investment vehicle for entities that may previously have been hesitant to invest directly in crypto.

The introduction of a Dogecoin ETF is anticipated to enhance the cryptocurrency's liquidity and market stability. By facilitating easier access for a broader investor base, the ETF could lead to higher trading volumes and reduced price volatility over time. The legitimacy conferred by regulatory approval could potentially bolster investor confidence and attract more capital inflows into Dogecoin.

Dogecoin Spot ETF approval could also set a precedent for other meme-based cryptocurrencies, such as 

 (SHIB), to pursue similar financial instruments. The Shiba Inu community has been actively advocating for a SHIB-based ETF, highlighting factors like strong diversification prospects and growing investor demand. Notably, after the Spot Ethereum ETF approvals in July 2024, Shiba Inu's pseudonymous lead developer, Shytoshi Kusama, hinted that SHIB could be next in line. 

As with a Dogecoin Spot ETF, the introduction of a Shiba Inu Spot ETF would provide investors with regulated exposure to SHIB, potentially increasing its adoption and market presence. However, the approval process for such ETFs is complex and subject to stringent regulatory scrutiny. While the SEC has approved ETFs for major cryptocurrencies Bitcoin and Ethereum, the path for altcoins like Dogecoin and Shiba Inu remains uncertain. Factors such as liquidity, market maturity and regulatory perspectives will play crucial roles in any approval process.

Looking to capture the market and trade DOGE tokens? Bybit offers the 

The approval of a Dogecoin Spot ETF would mark a watershed moment for meme cryptocurrencies, offering regulated access to Dogecoin’s price movements and potentially stabilizing its volatile market through institutional investments. While initial price surges and subsequent corrections highlight speculative risks, long-term benefits would likely include enhanced liquidity, legitimacy and broader investor adoption. This precedent could pave the way for altcoins like Shiba Inu to pursue similar ETFs, though regulatory hurdles and market maturity remain critical barriers. 

Ultimately, a Dogecoin Spot ETF would bridge meme-driven crypto culture with traditional finance, providing the much-beloved dog-themed Dogecoin with a previously unattainable level of credibility.

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Dogecoin Spot ETF: A giant leap for Dogecoin's legitimacy

In this tutorial, we’ll explore how you can complete a series of tasks in Prosper for Bybit Web3 Airdrop Arcade.

In this tutorial, we’ll explore how you can complete a series of tasks in Prosper for 

Task: Stake at least 20 PROS on the Prosper DApp on BSC

 and connect your Bybit Wallet by clicking on the 

button at the top-right corner of the page and selecting 

: Type in the amount of PROS tokens you would like to stake. You’ll need to stake at least 20 PROS tokens to complete this task.

If you notice the available amount shown for the connected wallet is incorrect or unexpected, simply click on the “refresh” icon to update your token balance. Also, please ensure that you’re connected to the BNB Smart Chain (BSC) network.

 to approve both the application permissions and the stake amount via your Bybit Wallet. 

Once both interactions have been completed, you’ll have successfully staked PROS!

: You’ll be prompted to add rePROS (receipt for staked PROS) to your Bybit Wallet (for display purposes) after you finish staking. These tokens effectively serve as a receipt for your staked PROS.

prosper tutorial.png

How to complete Prosper tasks for Bybit Web3 Airdrop Arcade

Bybit Learn

Trading

A rounding top pattern, also known as a rounded top pattern, is a technical analysis tool used by crypto traders to identify a potential trend reversal.

It’s often said that traders should cut their losers early and let their winners run. While traders may want to let their crypto winners run, an overt focus on 

 and not taking profits off the table can be dangerous when momentum turns against you and the sentiment of a particular coin or token suddenly becomes 

To gain a sense of when it’s time to consider closing your existing position, one bearish reversal pattern you may want to consider is the rounding top pattern.

By interpreting the warning signs early and grasping the formation of an upcoming inverted U-shaped top, traders with knowledge of such 

–related patterns can easily establish a short position early or close off a long position before the rounding top pattern fully plays out.

Interested in learning how you can lock in your profits early before a sudden downtrend reversal? In the following guide, we’ll consider how crypto traders can learn to notice early formation of the rounding top chart pattern and set take-profit levels.

A rounding top pattern, also known as a rounded top pattern, is a technical analysis tool used by crypto traders to identify a potential trend reversal. The chart pattern looks like an inverted U, and is formed when an asset’s price increases gradually, peaks and then dips again.

Ask any active trader and they’ll tell you it's important to be aware of bearish reversal pattern formations, as it can help with setting rough 

 levels and guarantee profits before an inevitable downswing in price movement. The rounding top pattern typically occurs as the crypto market shifts from 

 leans toward the bearish side. To take advantage of the sudden shift, traders with charting and technical analysis backgrounds may want to 

 based on these shifts. The plan may be crafted with the intention of either 

Before proceeding to make trades based on the rounding top pattern, it’s key to first study the formation and eventual emergence of this charting pattern. An often relied-upon trend reversal pattern that may indicate an explosive breakout in a bearish direction, the rounding top can easily be spotted, thanks to a sudden downward trend that occurs as the result of a gradual appreciation in price. 

Regardless of whether the sudden trend change is based on news or is moving off of technicals, this sudden movement represents a change in trader sentiment and expectations. In order to possibly profit from early knowledge of this shift in sentiment, crypto traders can opt to establish a 

 so they can trade off the chart pattern’s formation. To break down the rounding top pattern, traders can watch for the three stages that form its inverted U-shaped curve.

Initial Buildup of the Rounding Top Reversal Pattern

The first stage of this pattern involves gradually rising prices and is characterized by low volume. This indicates that crypto traders may not actively be buying and selling at this time. Because of the lack of demand, some speculators might call this a 

, since there’s weak price action. Moreover, traders may notice that the asset’s price tends to face short-term bounces off resistance lines before resuming its gradual decline.

The second stage marks a shift in sentiment, with the asset’s price reaching a peak as part of the inverted U shape, before going back on the decline to form a range that sees the price bouncing off key levels. This flagging pattern hints that traders may be exiting the market again ahead of a potential negative catalyst or news story.

In the third and final phase of the rounding top pattern, traders may notice a buildup of selling pressure as the asset’s price trends downward, and a hint of an upcoming breakout as bullish candlesticks appear to signify the end of the flagging pattern. This is typically accompanied by a sudden increase in trading volume, confirming the asset's bearish momentum and subsequent downward price movement. 

During this portion, breakout traders usually start to enter into short positions with confidence as the price action is confirmed with the surge in buying volume. Conversely, if long positions were previously established, the recognition of this bearish trading pattern might be a sign to exit these long positions and lock in profits ahead of a drop in the asset’s price.

When Does the Rounding Top Pattern Breakout Occur?

If you’re a crypto trader who focuses on pattern breakouts, then you’ll certainly want to know when breakouts occur for the rounding top pattern. In this bearish pattern’s case, breakouts usually take place at the end of the formation when the price falls sharply below the support level that’s been established during the formation. As the price breaks below this level, it signals that sellers are dominating and likely driving prices lower. This can be an opportunity for traders to capitalize on a bearish move in the underlying asset, and to take action according to the existing market momentum.

Benefits of Using the Rounding Top Pattern

Keen to get ahead of the competition? Here are the possible benefits of including the rounding top pattern in your arsenal of recognized bearish chart patterns.

Early Recognition of the Bearish Pattern Formation

By understanding the formative stages of the rounding top pattern, crypto traders gain an edge over other market participants, as they can plan ahead and execute their trading plan according to how the price of the coin or token might move based on the pattern.

From trading on the breakout and building a short position to cutting the trade short and locking in profits, understanding the formation of the rounding top pattern helps crypto traders better grasp their setups and learn when to increase their position size.

Easy Setting of Take Profit & Stop Loss Levels

 can be straightforward if crypto traders make use of the price levels presented as part of the rounding top pattern. Those seeking to open a short position may consider placing their 

 levels at the peak of the inverted U shape in order to limit their risk. As for profit-taking levels, traders can attempt to play the breakout by setting a take-profit level slightly below the initial formation of the inverted U shape.

Although the rounding top pattern is a hot favorite among crypto traders with a bearish inclination, here are some risks that traders should take note of.

Using the rounding top pattern as part of a trading strategy can be risky, due to the inherent uncertainty in interpreting chart patterns. 

First, the rounding top pattern is hard to identify, and therefore traders may be unsure whether they’re observing a valid pattern or not. Secondly, since traditional chart patterns offer no certainty of future price movements, traders may experience losses if they misread the chart pattern and make wrong judgment calls. Furthermore, there may also be risks associated with false breakouts (

) that could lead to potential losses for traders.

As with all trading chart patterns, it’s key to recognize that the full formation of patterns such as the rounding top won’t play out perfectly. In particular, the second stage of the rounding top pattern may take days or weeks to fully play out. This can be a struggle for those who are 

 or trading with a shorter time horizon. Crypto traders who prefer to 

 or perform quick scalps throughout the day may ultimately lack the patience to see through their trading plan and let the rounding top pattern fully play out in order to realize a full recovery in price.

Because of the inherent volatility of buying and selling activity from market participants, nothing’s a sure bet when it comes to trading. This is made worse due to the somewhat volatile nature of cryptocurrencies. 

While the rounding top pattern may be considered a trusted formation for planning trades, given that it’s usually effective for trades with long time frames, non-viability might arise when catalysts cause marked changes in sentiment. While trading crypto, you may see huge surges and dips that cause an asset’s price to suddenly shift directions and break out of an established trend without prior warning. This can result in crypto traders becoming trapped in a trade after deciding to go short during the rounding top pattern’s second phase.

Relationship of Rounding Top Pattern to Double Top Pattern

A commonly known bearish charting formation that crypto traders rely on is the 

. It’s similar to the rounding top pattern in that both appear to play out the same in their initial stages. However, while rounding top patterns usually result in a breakthrough of the initial inverted U-shaped formation that acts as a support level, double-tops are characterized by false breakouts that cause the price of the asset to rebound off the established support level.

In order to not fall for such false flags, crypto traders can make use of complementary trading indicators and trendlines to confirm the downward movement of an asset before deciding to commit to their bearish trading plan.

Is the Rounding Top Pattern Worth Trying?

Based on the points listed above, the rounding top pattern is definitely worth trying as it’s relatively easy to identify and can help crypto traders get a better idea of when market sentiment changes direction. However, it should be noted that no pattern is 100% accurate, so it’s important for crypto traders to use other indicators and set appropriate stop-loss and take-profit orders in order to ensure their positions are adequately protected against large and unexpected market swings.

Regardless of your level of trading experience and/or prior knowledge, it’s key to grasp how the rounding top pattern works and forms in order to determine if it will work for you as a trader. This pattern ultimately requires longer time frames and a sharp eye, as rounding tops typically form over several days or weeks before even becoming remotely recognizable to trained eyes.

All in all, the rounding top pattern can be a useful tool for crypto traders looking to identify bearish sentiment in the market. However, it’s important to remember that this pattern should only be used as one of many indicators and trading tools when making trading decisions. We hope that you’re now better informed on the use of the rounding top pattern as a result of our simple trading guide. For more articles and guides on trading patterns and 

, make sure to read up on Bybit’s guide to trading the 

Rounding Top Pattern: How to Use It for Crypto Trading

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