Trading the Stock Market

Jul 23, 2015

  1. capnjim01
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    capnjim01 Super Genius

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    I'm not sure if I'm asking this question right but, can you trade the market?
    Can I buy and sell the Dow or the NASDAQ just like you trade individual stocks?
     
  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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  3. capnjim01
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    capnjim01 Super Genius

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    Thank you I knew someone on this forum would have the answer
     
  4. Winter_123
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    Winter_123 Guru

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    If you are googling around for more info, what you want to do is commonly referred to as "trading the index" or trading the indices.

    In several instances you will see indices that seem to reflect the same collections of stocks. Example,. both the SPX and the SPY are composed of the S&P500 stocks- but the contract size for each of those indices is different in a major way. So frinstance, if you just want to put on a small trade - maybe a few contracts you would use the SPY so that you don't have that much at risk. But a bigger trader might go with the SPX to avoid paying commission for a pantload of smaller contracts just to reach a larger number.
    Things like that come into play.
     
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