US 500 - Standard and Poor's 500 Index

Standard and Poor's 500 is a stock index that tracks the capitalization of the 500 stocks which represent major industries in USA economy. The listing of 500 companies is made up of stocks displayed and shown in NYSE and NASDAQ.

US 500 just like the Dow Jones Industrial Average Index is more volatile than most of the other Top Traded Index, The US 500 index will over the long-term trend upwards but it will have more price pullbacks and more consolidations than other stock index. Traders might & may prefer to trade other indexes other than this one if they're more accustomed to trading the more stellar trends which are found in the other top indices.

One of the reason this index has more oscillations than other stock indices is because it has more component stocks than other indexes. This stock index also has got a weighting factor in its calculation which also contributes to making it more volatile.

US 500 - Standard & Poors 500 Index

The US 500 Chart

US 500 chart is displayed and portrayed above. On the example shown above this trading instrument is referred to & known as as US500CASH. As a trader you want to find a broker that offers US500 Stock Index chart so that you as a trader can start & begin to trade it. Stock index example laid-out above is that of US 500 on MetaTrader 4 Platform Software.

Other Information about US 500 Index

Official Stock Index Symbol - US500

The 500 constituent stocks which make up the 0US-500 are picked from the major industries in US economy. The calculation of this index is however different compared to other Indices: the price constituents of the 500 stocks/shares also has got a weighting factor that makes this stock index more volatile than others.

Trade Strategy for US 500 Index

US 500 technique/formula of calculating it makes it more volatile & hence there are more wide swings in price movement of this stock index. Although this index in general moves upwards over the long term because USA economy also shows strong and robust growth and is also the biggest economy in the globe.

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

As a indices trader you want to be biased & keep on buying as the index moves & heads upward. When America economic & business environment is doing well and good (majority of the times it is doing well) this upwards trend is much more likely to be the one that is ongoing. A good index trade strategy would be to keep buying and buy the market dips.

During Economic Slow Down and Recession

During economic slow down & recession periods, firms begin reporting lower revenues, lower profits and lowers growth prospect. It is because of this reason that traders begin & start to sell stocks & shares of companies that are posting & recording lower profits and hence stock index keeping track of these specified stocks also will begin to go downward.

Therefore, during these market times, the market trends are much more likely to be heading and moviing down & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stocks market index that you're trading.

Contracts Specifications

Margin Requirement for 1 Lot/Contract - $ 12

Value per 1 Pip(Point) - $ 0.1

NB: Even though general trend is in general moves upward, as a stock indices trader you've got to factor in daily market volatility, on some days this index may move and oscillate in a range sideways move or might even pullback and retrace, market retracement may & might also be significant some times & therefore you as a trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use the proper and suitable money management techniques and guidelines in case there is more unexpected market volatility. About money management guidelines in indexes trading topics: What's stock index money management methods & guidelines & indexes trading money management system.

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