The index comprised of the 500 largest companies in the US is the S&P 500. It is used to measure the overall performance of the American stock market. Regarded as a representative sample of the US economy, making up 75% of the various sectors and industry groups, it truthfully reflects the economic events of the country.
One distinctive feature that differentiates it from other indices is that it keeps track of the 500 most popular publicly-traded stocks in the New York Stock Exchange (NYSE) and the NASDAQ. It focuses on firms that are headquartered in the US main land, with the few that takes root in other parts of the globe.
Economists and index analysts from the leading financial firm, Standard & Poor, maintains the S&P 500. It is weighted by market capitalization, which means that the share prices are multiplied by the total number of shares that are available to the public. During trading sessions the index is updated once every 15 seconds. Due to the wide selection of stock listings, the S&P 500 have provided investors a larger range of industries for the binary options trader.
To keep the list updated, there are several factors that are taken into account:
•Special Cash Dividend
How to trade with S&P 500
As with every trade in binary options, executing an exchange with the S&P 500 requires strategies that can be helped by research via online media. However, the simple steps on trading with the S&P 500 still apply, namely:
1)After you have selected a reputable platform, choose Indices from the Assets tab. Find S&P 500 from among the list and place your bid.
2)Identify if the price of the asset will increase (CALL option) or decrease (PUT option).
3)Assign an expiry time and wait for the contract to finish. For the S&P 500, the initial expiry that will be listed is for a three (3) consecutive near-term contract. Usually, it closes at the Saturday following the third Friday of the expiration month.
•The trading hours for the S&P 500 is8:30 a.m. to 3:15 p.m. Central Time (Chicago time)