SPX 500 - Standard and Poor's 500 Index

Standard and Poor's 500 is a index that monitors the capitalization of the 500 stocks which represent major industries in US economy. The list of 500 corporations is made up of stocks illustrated & displayed in NYSE and NASDAQ.

The SPX500 just like the Dow Jones Industry Average Stock Index is more volatile than most of the other Top Traded Index, The SPX500 stock index will over the long term trend upwards but it'll have more pull backs & more consolidations than other stock index. Traders might prefer to trade other stock indices other than this one if they're more accustomed to trading the more stellar trends found in other top indices.

One of the reason this stock index has more oscillations than other indexes is because it has more component shares & stocks than other indexes. This index also has weighting component/constituent in its calculation which also contributes to making the index more volatile.

SPX 500 Index Lesson Guide - SP500 Trtading Strategy

The SPX500 Chart

The SPX500 trade chart is displayed and illustrated and shown & displayed above. On the example shown above this trading instrument is known as as US500CASH. As a trader you want to find a broker who provides SPX 500 trade chart so that as you as a trader can begin to trade it. Example displayed above is of SPX500 on MetaTrader 4 Software Platform.

Other Information about SPX500 Index

Official Symbol - SPX:IND

The 500 component stocks which constitute SPX500 are chosen from the major industries in US economy. The calculation of this index is however different compared to other Indices: the price component of the 500 stocks/shares also has got a weighting component/constituent that makes this stock index more volatile than others.

Trade System for SPX500 Index

SPX500 method of calculating it makes it more volatile & thence there are much more wider swings in the price movement of this stock index. Although this stock index generally move upward over the long-term because US economy also shows strong and robust growth and is also the biggest economy in the globe.

As a trader wanting to trade this index, be prepared for wider price swing & a little more volatility.

As a indexes trader you want to be biased and keep on buying as the index moves upwards. When America economy is doing good (most times it is doing good) this upward trend is more likely to be the one that is ruling. A good stock indices trade strategy would be to buy the market dips.

During Economic Slow Down & Recession

During economic slow down recession periods, companies start reporting slower earnings and revenues, slower profits & lowers growth prospects. It is due to this reason that traders begin & start to sell stocks/shares of companies which are announcing and reporting lower profits & therefore stock index keeping track and monitoring of these particular specifed stocks also will start heading and going downward.

Hence, during these market times, the market trends are much more likely to be heading downwards & you as a trader should also adjust the trading strategy you're using accordingly to suit & fit the prevailing downwards trend of the stock market index that you're trading.

Contracts Details

Margin Requirement per 1 Lot/Contract - $ 12

Value per 1 Pip(Point) - $ 0.1

NB: Even though general trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some of the days the index might oscillate or even retrace, market pull back might also be substantial sometimes & therefore as the trader you need to time your entry precisely using this trading strategy: trading strategy and at the same time use proper/suitable money management guidelines & principles just in case of unexpected volatility in the market movement. About equity management methods/guidelines courses: What is equity management and stock indexes equity management strategies/methods.

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