Trade the S&P 500 (US 500) Index CFD

If you’re living in Australia and would like to gain some exposure to the US markets, then you should consider trading contracts for difference on the S&P 500 Index.

With major advancements in technology over the past 10-20 years, trading the world’s financial markets has never been easier. Today, we have far more choice and opportunity to trade global markets, thus providing diversification and sound risk management to our investment portfolios.

There are many advantages to using CFDs to trade the S&P 500 index (and other financial markets) – this is a guide that explains these benefits in greater detail, whilst also going into how to trade the S&P 500 index, what to look out for when searching for a CFD broker, plus much more.

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What is the S&P 500 Index?

America’s S&P 500 or the US500 was officially launched in 1957 by Standard & Poor’s Financial Services LLC, an American financial services firm, to track the value of the largest 500 companies listed on the New York Stock Exchange (NYSE) and Nasdaq Exchange.

The S&P 500 index consists of the leading 500 companies in the U.S and include Exxon Mobil Corp, Apple Inc, Microsoft Corp, JP Morgan Chase & Co, General Electric Co and Chevron Corp.

The S&P 500 index is a leading indicator of the economic health of America as it covers around 75% of the U.S. equity market by capitalisation, and is also made up of a range of different industries, such as information technology, banking, health care, consumer finance, biotechnology plus more.

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Benefits of Trading the S&P 500 Index as a CFD

When you open the TradeDirect365 platform, you will notice the S&P 500 index is called the US SPX 500. The US SPX 500 tracks the movement of the S&P 500 index.
  • The main advantage of trading the S&P 500 index is the minimal margin required to open a position – you only need 0.5% margin if you want to trade the S&P 500 as a CFD
  • Trading the S&P 500 also gives you a very competitive 3-point spread
  • Trading the S&P 500 CFD via TradeDirect365 is easy and you can place stop to enter, stop loss and limit orders in with ease
  • For extra protection, we even offer guaranteed stops on the S&P 500
  • Go long and short – if you think the value of the S&p 500 will decline, you can make a sell trade to reflect this.
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How Can You Trade the S&P 500 Index CFD?

You can trade the S&P 500 index using the TradeDirect365 platform. Simply go to the Market Explorer tab > Indices > US > US SPX 500. When you hover your mouse on the US SPX 500 row and click on the Trade button, an order ticket will open and you can put in your buy or sell trade.

 

 

 

 

 

 

 

The Benefits of Trading Index CFDs

  • Trading Index CFDs, like the US SPX 500, the Australia 200, UK 100 or Japan 225, gives you access to the entire market of a region.
  • By trading Index CFDs, you can also take advantage of both the rise and fall of the top stocks on that particular index
  • It also helps lessen your exposure to any sudden gaps and volatility that may affect individual stocks
  • Leverage: trading CFDs allows you to trade using leverage
  • Wide range of markets: all from one trading platform (access other asset classes such as stocks, forex and commodities)
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S&P 500 Index CFD Trading Specifications Tradedirect365 Trading App

  • Trading hours: open Sunday 23.00 to Friday 21.15
  • Spread Cost: 3 points at all times
  • Expiry date: None (Rolling)
  • Margin required: 0.50% (Leverage of 200:1)
  • Guaranteed Stop-Losses: Yes
  • Guaranteed Stop Distance: 1%
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7 Benefits of Trading the S&P 500 Index CFD with TD365

  • Tight, Fixed spreads: trade the S&P 500 with a fixed spread of 3 points at all times
  • No Commissions: we do not charge commission on S&P 500 trades
  • We are ASIC-Regulated: TradeDirect365 is a trading name of Finsa Pty Limited (ACN 158 065 635 and AFSL No. 422661)
  • Easy Trading Platform: our trading platform is fast and efficient – Find out more about our trading platforms here.
  • Low Cost Trading: we are one of Australia’s lowest cost CFD providers
  • Go long or short: trade your view by buying or selling the S&P 500
  • Guaranteed Stop Loss: you can trade with a guaranteed stop, providing you with excellent risk management tools.
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Trade Your View on the S&P 500 Index Today

If you already have a view on what you believe the short to medium term view is for the S&P 500 index, then why not put your analysis to the test and open a trade today?

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