Stock index cannot be traded as a pure asset – a trader can only operate its derivative. CFDs and ETFs are among the popular derivatives for indices.
CFDs (Contracts For Difference) are financial instruments that allow higher leverage while trading, and the opening of 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 ShoreLiteTrades are provided in the form of CFDs.
ETF (Exchange-Traded Fund) is an asset that is gaining popularity. It 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), which tracks the S&P 500 index.
- SPDR Dow Jones Industrial Average ETF (DIA), which tracks the Dow Jones index.
- The Invesco QQQ ETF (QQQ), which tracks the Nasdaq-100 index.
You can trade or invest in all of these instruments and other index ETFs on ShoreLiteTrades new-generation R StocksTrader platform.