Index Trading Made Easy with ZuluTrade
What is Index Trading?
Index trading is defined as the buying and selling of a specific stock market index. Investors will speculate on the price of an index rising or falling which then determines whether they will be buying or selling.
Since an index represents the performance of a group of stocks, you will not be buying any actual underlying stock, but the weighted average performance of these stocks, not every stock has the same per cent impact to an index. Big market cap stocks heavily affect the direction of an index. When the price of shares for the companies within an index goes up, the value of the index increases. If the price instead falls, the value of the index will drop.
Since an index represents the performance of a group of stocks, you will not be buying any actual underlying stock, but the weighted average performance of these stocks, not every stock has the same per cent impact to an index. Big market cap stocks heavily affect the direction of an index. When the price of shares for the companies within an index goes up, the value of the index increases. If the price instead falls, the value of the index will drop.
What are the Advantages of Index Trading?
Go long side and short side
The ability to go "long" or "short" means that you can take advantage of stock indices prices falling or rising with the help of CFDs or options derivatives.
Broad diversification
Diversifying your portfolio among so many companies, by investing money into just one index fund, ensures that the value of your portfolio is not overly correlated with the fortunes of any one company listed in the index.
Lower turnover ratio
The turnover ratio measures the percentage of a fund's holdings replaced in a single year. Index funds have a lower turnover ratio than actively managed funds. Index fund turnover ratios are usually about 1% to 2% per year, compared to 20% or higher for some actively managed mutual funds.
Lower taxes on capital gains
If a fund sells a stock for profit, then the difference between the initial purchase price and the final sale price is considered a capital gain. Funds with higher turnover ratios accrue capital gains more frequently, which results in more taxes owed by the fund's investors.
Lower Cost
A major benefit of investing in index funds is that the costs, including taxes and management fees, may be lower than those associated with other types of investment funds.
Attractive returns
Individual companies both outperform and underperform the market, but, in general, the overall stock market increases in value over time. As a result, the index can help you identify the trend direction and filter individual investing actions, which makes them an excellent value for any investor.
How Does Index Trading Work?
Pick an index
There are hundreds of different indexes you can track using index funds. The most popular index is the S&P 500 Index, which includes 500 of the top companies in the U.S. stock market.
Choose the right fund for your index
Once you've chosen an index, you can generally find at least one index fund that tracks it. For popular indexes like the S&P 500, you might have a dozen or more choices all tracking the same index.
To buy shares in your chosen index fund, open a brokerage account with one of our brokers that allows you to buy and sell shares of the index fund you're interested in.
Enjoy the Investing Journey
Index funds offer investors of all skill levels a simple, successful way to invest. If you're interested but aren't excited about doing a lot of research, then index funds can be a great solution to achieve your financial goals.
Features of our Index Trading Platform
Global & EU Regulated Network (Soley CFDs for index trading)
ZuluTrade is established globally, it is trusted by millions of users worldwide and is regulated in the EU.
Risk Management
With features like Stop Loss/Take Profit, Negative balance protection and Trailing Stop you can manage your losses and profits at the levels predetermined by you.
The Trading Community
Join the ZuluTrade community, discuss trading ideas and opportunities, or simply follow other traders.
24/5 Live Support
You are our priority! Our friendly Customer Support is always by your side, ready to answer your questions.
Frequently Asked Questions (FAQs)
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This site is not intended to be a solicitation of transactions to customers living in the United States of America.
ينطوي تداول العملات على مخاطر كبيرة وهناك دائمًا احتمال الخسارة. قد تختلف نتائج تجارتك. نظرًا لأن عامل المخاطرة مرتفع في تداول سوق الصرف الأجنبي ، يجب استخدام الأموال "المخاطرة" الحقيقية فقط في مثل هذا التداول. إذا لم يكن لديك رأس المال الإضافي الذي يمكنك تحمل خسارته ، فلا يجب عليك التداول في سوق الصرف الأجنبي. يتم تعويض وسطاء الفوركس و ZuluTrade مقابل خدماتهم من خلال الفارق بين أسعار العرض / الطلب أو قد تكون هناك تكلفة لبدء التداول من خلال فرق العرض / الطلب. تخضع حسابات مشاركة الأرباح لرسوم أداء شهرية لكل نظام تداول محدد.
نتائج الأداء الافتراضي لها قيود متأصلة ، بعضها موصوف أدناه. لا يوجد أي تمثيل بأن أي حساب سيحقق أو يحتمل أن يحقق أرباحًا أو خسائر مماثلة لتلك المعروضة. في الواقع ، هناك اختلافات حادة في كثير من الأحيان بين نتائج الأداء الافتراضية والنتائج الفعلية التي تم تحقيقها لاحقًا بواسطة أي برنامج تداول معين.
تتمثل إحدى قيود نتائج الأداء الافتراضية في أنها معدة بشكل عام لصالح الإدراك المتأخر. بالإضافة إلى ذلك ، لا ينطوي التداول الافتراضي على مخاطر مالية ، ولا يمكن لسجل تداول افتراضي أن يمثل تمامًا تأثير المخاطر المالية في التداول الفعلي. على سبيل المثال ، القدرة على تحمل الخسائر أو الالتزام ببرنامج تداول معين على الرغم من خسائر التداول هي نقاط مادية يمكن أن تؤثر سلبًا على نتائج التداول الفعلية. هناك العديد من العوامل الأخرى المتعلقة بالأسواق بشكل عام أو بتنفيذ أي برنامج تداول محدد لا يمكن حسابه بالكامل في إعداد نتائج الأداء الافتراضية وكلها يمكن أن تؤثر سلبًا على نتائج التداول الفعلية. الرجاء النقر {{0}} هنا {{1}} لمشاهدة إخلاء المسؤولية الكامل.
[1] تتلقى Futures Commission Merchant ("FCM") وZuluTrade مقابل خدماتهما من خلال الفارق بين سعري الشراء والبيع أو قد تكون هناك تكلفة للبدء في أي صفقة تداول من الفارق بين سعري العرض والطلب. التسجيل مجاني تمامًا ولا توجد رسوم شهرية أو تعاقدية أيًّا ما كانت.
[2] Past performance is not indicative of future results. This website does not make any representation whatsoever that the above mentioned trading systems might be or are suitable or that they would be profitable for you. Please realize the risk involved with trading Forex investments and consult an investment professional before proceeding. The trading systems herein described have been developed for sophisticated traders who fully understand the nature and the scope of the risks that are associated with trading. Should you decide to trade any or all of these systems' signals, it is your decision. The performance results displayed on this website are hypothetical in that they represent trades made in a demonstration ("demo") account. The trades placed in the demo account take into consideration the spread between the bid and ask prices which would have been paid by a trader if an actual trade was made. Transaction prices were determined by assuming that buyers received the ask price and sellers the bid price of quotes provided by a large Forex broker.