Stock index can’t be traded as a pure asset - a trader can operate only its derivative. Among the popular derivatives for indices are CFDs and ETFs.
CFD (Contract For Difference) is a financial instrument that allows to use a higher leverage while trading and to open both long (buying) and short (selling) positions. CFDs on Indices usually have the same price as their underlying index and follow the same trends.
All indices available for trading at RoboMarkets are provided in a form of CFDs.
ETF (Exchange-Traded Fund) is a gaining popularity asset that can represent the same set of shares as an index or the same industry or market. ETFs are traded on the same stock exchanges as the stocks included in the fund.
Some of the most common index ETFs include:
- The SPDR S&P 500 Trust ETF (SPY) tracks the S&P 500 index.
- SPDR Dow Jones Industrial Average ETF (DIA) tracks the Dow Jones index.
- The Invesco QQQ ETF (QQQ) tracks the Nasdaq 100 index.
You can trade or invest in all of these instruments and other index ETFs in our new-generation R Trader platform.