New to trading? From stocks to indices to currencies, learn to trade with our bitesize explanations. 

The Standard & Poor’s 500 Index is an index of the 500 largest companies in the US by market capitalisation (overall value of the company).

It is commonly referred to as the single best gauge of the economic performance of enterprise-level companies in the US.

All companies included in the index are publicly traded companies.

Although the constituent companies of the index can change based on which organisations have the biggest market capitalisation, prominent companies include:

Amazon, Apple, Facebook, Exxon Mobile, Alphabet, Nike, Walmart. 

How can I trade the S&P 500 index?

The S&P500 is tradable as a single asset with TIOmarkets under the ticker S&P500, or alternatively, you can trade constituent company assets individually. 

What causes the price of the S&P 500 to rise or fall?

The S&P500 is primarily influenced by the performance of its constituent companies. Earnings reports, company news, industry news, and projected earnings by analysts are likely to have the greatest impact.

S&P500 is also influenced by economic reports such as unemployment rates, job creation, inflation, and other economic benchmarks.

What are the best trading conditions for the S&P 500?

As we’ve seen with the recent pandemic, the stock markets can be prone to large swings up or down based on economic turmoil, recovery and economic conditions.

Trade protection: Using risk tools like TIOshield (only available at TIOmarkets) can help to protect your trades against sudden breaking news that may swing the markets one or another. 

TIOshield lets you cancel any trade within 1 hour to get all of your margin back.

Execution speeds: Slow order execution speeds can lead to a big difference between the price you see when you click to open a trade, and the actual price your order is opened at. This difference between prices is called “slippage”.

At TIOmarkets, we have some of the fastest execution speeds you can find, resulting in minimal slippage and more orders filled at the price you clicked.

Leverage: Normally, a large amount of starting capital is required to invest seriously in stocks and indices, because only a small amount of stocks is not likely to yield the kind of results most traders are seeking. 

High leverage can greatly increase both the risk to your investment and the potential returns.

If you are comfortable with a high level of risk in return for higher potential gains, you may want to seek a leverage ratio that is commensurate to your investment goals.


The markets are highly volatile, ensure you have sufficient margin in your account to cover open positions. New to TIOmarkets? Simply sign up and create your account to start trading with a low-cost broker today. 

TIO Staff
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