S&P 500 Index Trading

The Standard and Poor's 500 index, or simply the S&P 500, is one of the most widely recognised and quoted stock market indices in the world. It tracks the performance of 500 large and well-established publicly traded companies listed on major US stock exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ.

The selection of companies in the S&P 500 is done by a committee, which aims to include a representative sample of the US economy across various sectors. These companies collectively represent a sizeable portion of the overall market capitalisation of the US stock market. Well-known companies in the index include Apple, Amazon, Microsoft, Meta (Facebook), Alphabet (Google), Johnson & Johnson, Tesla, Coca-Cola, Visa, McDonalds, Walmart, Nike, and Disney.

The S&P 500 is weighted by float-adjusted market capitalisation, meaning larger publicly tradable companies generally have a greater influence on movements in the index.

Unlike the US30, which contains 30 companies and is price-weighted, the S&P 500 provides much broader exposure to the US stock market.

What is US500 CFD trading?

US500 CFD trading lets you trade movements in the S&P 500 without buying shares in the companies that make up the index.

With a US500 CFD, you can open a long position if you expect the index to rise or a short position if you think it will fall.

CFDs are traded using margin, so you only need to put up a portion of the position's full value. Leverage increases your market exposure and can magnify both profits and losses.

US500 is Axi's cash CFD on the S&P 500. Positions held overnight may be subject to financing charges and dividend adjustments.