Binary options Trading with the S&P 500 Index
The EZTrader platform provides global traders with a means of trading across a variety of geographical markets through a number of asset categories. Trading with indices enables the binary options trader to take a view on an overall market compared to a single stock, currency pair or commodity. By taking a view on the greater picture of a given market, traders can benefit from short-term predictions on price movements in that given market.
Whether a trader has experience in binary options trading or is a novice, trading with an index like the S&P 500 is an ideal method of executing your binary options trading strategy.
The S&P 500 is an American based, free-float capitalization weighted index. It is managed by Standard & Poor’s, one of the leading financial service firms in the United States. This index is a part of the S&P Indices division of the parent company and is one of the world’s leading index providers.
This index is the world’s most followed stock market index and includes publicly held companies that trade on either of the two largest American stock exchanges, the New York Stock Exchange and the NASDAQ.
The index includes the top 500 common stocks with the largest capitalization that are actively traded in the United States. Due to the breadth and depth of this stock index, the S&P 500 provides traders with the ability to access a range of industries through binary options trading.
The index is primarily comprised of organizations with headquarters in the United States, however there are a few companies listed with headquarters and/or incorporated in other parts of the globe.
As an American index, the S&P 500 provides a significant representation of market performance in the United States. It currently represents approximately 75% of market capitalization in America, demonstrating the link of the index to the overall performance of the US economy. In turn, traders can access performance information of its components and the index itself widely in the financial media.
With it being comprised of 500 organizations, its components span across a wide range of markets and industries. Some of the global organizations included in the S&P 500 are American Express, Netflix, Amazon and Campbell Soup. This demonstrates the diversity of stocks included in the index for the binary options trader.
EZTrader offers its traders the opportunity to use the S&P 500 in executing their binary options trades. Regardless of your skill level, using an index is a powerful method for implementing your trading strategy.