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.
现货货币交易涉及大量风险，并且始终存在潜在的损失。 您的交易结果可能会有所不同。 因为在外汇市场交易中风险因素很高，所以在这种交易中只能使用真正的“风险”资金。 如果您没有可以承受的额外资本损失，则不应在外汇市场进行交易。 外汇经纪商和ZuluTrade通过买卖价格之间的价差来补偿他们的服务，或者通过买卖价格价差进行交易可能会产生成本。 利润分享帐户每个选择的交易系统都将收取每月的服务费。
假设的性能结果具有许多固有的局限性，下面将描述其中的一些局限性。 没有代表任何帐户将或可能实现与所示相似的损益。 实际上，假设绩效结果与任何特定交易程序随后获得的实际结果之间经常存在明显的差异。
假设绩效结果的局限性之一是它们通常是事后准备的。 此外，假设交易不涉及金融风险，并且任何假设交易记录都无法完全说明金融风险在实际交易中的影响。 例如，尽管存在交易损失，但承受损失或遵守特定交易程序的能力是重要因素，也可能对实际交易结果产生不利影响。 还有许多其他因素与总体市场有关或与任何特定交易程序的执行有关，这些因素在准备假设的业绩结果时无法充分考虑，而所有这些因素都可能对实际交易结果产生不利影响。 请点击{{0}}此处{{1}}以查看完整的免责声明。
[1] 期货经纪商（FCM）与ZuluTrade的利润通过买入价/卖出价之间的点差或者开单时的点差来实现。用户注册完全免费，无须签定合同或者交纳月租费用。
[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.