S&P 500 trading

Access one of the world’s most well known stock indices, the S&P 500, with PrimeXBT and its professional trading tools that will allow you to profit from both rising and falling prices

Trade S&P 500 Index

The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the entire US stock market.

Trading S&P 500 on PrimeXBT platform allows traders to maximize their trading results with a wide range of trading tools and ability to go long and short with flexible leverage. Benefit from award-winning products and industry-leading security.

Why trade S&P 500 with PrimeXBT

  • Easy to startStart trading in minutes with quick and easy registration procedure, and low minimum deposit
  • Low trading feesSave on fees! Benefit from PrimeXBT’s low commission rates and tight spreads while trading all available assets
  • Secure tradingEnjoy PrimeXBT’s security features that will ensure your personal data and funds are always safe.
  • Best-in-class trading platformPrimeXBT’s award-winning software offers traders a variety of professional trading tools. Access cryptocurrencies, stock indices, commodities, and forex from a single account!
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How does S&P 500 margin trading work?

When a trader decides to margin trade on the S&P 500 they are deciding to take a position that will be larger in value than the capital they want to put on it. So, they rather put up a margin, which is an amount used as insurance, and then PrimeXBT provides the rest to build up the position.

This margin amount is closely linked to the leveraging of the position and these margin accounts are then used to leverage the trading to make it more profitable in a successful trade, but they can also amplify losses by the leverage amount in unsuccessful trades.

The benefits of S&P 500 trading with leverage

  • Magnified profitsMargin trading is known for its ability to make larger trades compared to deposited amounts. Margin trading is one of the most effective ways to increase potential returns
  • DiversificationMargin trading means there is more available traders' capital left on the account which can be used to open new positions. Diversification allows to reduce market risk.
  • Gaining from the market fall.Margin trading also allows traders to open long and short positions in order to profit from both growing and falling market.

S&P 500 leverage trading example

For example, If a trader takes a long position of $2,000 on the S&P 500 and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.

Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.

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How to start trading S&P 500

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What is S&P 500 Index?

Much like the NASDAQ Composite or Dow Jones Index (DJIA), the S&P 500 or the Standard & Poor's 500 Index, is an index of the top 500 largest United States-based companies by size, weighted by market cap. The index is often considered an indicator of the health of the US economy, and consists of companies like Apple, Amazon, General Electric, and ExxonMobile.

S&P 500 history

The S&P 500 is among the most widely traded stock indices in history, and was first founded in March 1957. It is maintained by Standard & Poor, and is one of the computation factors in the Conference Board Leading Economic Index, used to forecast the performance of the greater economy.

Historical data shows that the stock average price of the S&P 500 can fluctuate significantly due to political factors, the revenue projections of the index components, and much more.

S&P 500 Index composition

The S&P 500 is an index of the largest companies in the United States. Each company and its stock value is weighted by market cap to come up with a stock guide for the share price of the S&P 500. Here is a companies list of all of the major businesses included in the S&P 500.

Table of Top 10 companies represented By S&P 500

CompanyIndex Weighting (%)
Apple Inc.3.7
Berkshire Hathaway1.69
Alphabet Inc1.59
JP Morgan Chase1.53
Johnson & Johnson1.52
Exxon Mobile1.42
*information as of May 2020

Why is the S&P 500 important to traders?

The S&P 500 is extremely important to traders for a number of critical reasons. Not only is the S&P 500 one of the most popularly traded stock Indices in the United States, but it is often used as an indicator to determine the health of the US economy, and overall global economy.

Because the S&P 500 is influenced by so many external factors, its price can fluctuate on a daily basis, making it an ideal asset for traders around the globe, looking to profit from financial markets.

How is the S&P 500 calculated?

The S&P 500 stock index’s value is calculated using a free-float market capitalization-weighted model, taking the outstanding shares of each company and multiplying it by the share price at current market value.

The individual market weights of each company’s publicly traded stocks are calculated by dividing the free-float market capitalization of a company in the index by the total market capitalization of the index.

Why trade S&P 500 Index CFDs with PrimeXBT?

The S&P 500 is a stock index rather than a single company stock which means that the growth of the index is pushed along by over a hundred companies. For traders, this means the risk is mitigated as one company’s poor performance won’t impact the index too much, and when there is a growth in macroeconomic factors, most of the top companies will benefit together.

PrimeXBT’s ultra-fast order execution and its stable, reliable trading engine ensures the tightest spreads and best trading experience. The trading platform is packed with advanced trading tools, such as long and short positions, advanced order types such as stop loss and take profit orders

The platform is also safe, secure, and offers 24/7 customer support service via a live chat, community channels, and much more.

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