How to Trade Indices: NAS100, US30 and S&P 500 for Beginners
A stock index tracks a basket of companies. Traders use index CFDs and futures to speculate on the whole market with one position. Here's how the popular US indices work and what to watch.
Index trading means trading a basket of shares, such as the S&P 500, Nasdaq 100 or FTSE 100, through futures, CFDs or ETFs. They move most at the cash market open and around economic data. Contract sizes differ hugely between instruments, so check the value per point before sizing.
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Open the live chart →The big three US indices
| Index | Common names | What it tracks |
|---|---|---|
| Nasdaq 100 | NAS100, US100, NQ | 100 large non-financial Nasdaq companies, tech-heavy and weighted by market value |
| Dow Jones Industrial Average | US30, YM | 30 large US companies, weighted by share price |
| S&P 500 | US500, SPX, ES | 500 large US companies, weighted by market value |
CFDs vs futures
CFDs let you trade the index price in small sizes through a broker; contract value per point varies by broker. Futures trade on an exchange with standard contracts (for example, E-mini and Micro contracts) and real traded volume. Always check the value of one point for your contract before sizing.
Sessions and gaps
The US cash session opens at 9:30 am New York time, and the first minutes after the open are often the most volatile of the day. Index futures trade nearly around the clock on weekdays, so price can gap relative to the previous cash close. Big US data and earnings from the largest companies can move the whole index.
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Play free, no signup →What moves indices
- Interest rate expectations and Federal Reserve decisions.
- Earnings, especially from the biggest companies in cap-weighted indices.
- Risk sentiment and positioning, including options-related hedging flows.
Risk on volatile indices
Indices can move hundreds of points in a day, so stops in points are larger and size must come down to match. Decide your risk in money first, then size from the stop. Avoid oversized positions at the open, when spreads and slippage are highest.
Frequently asked questions
What is NAS100?
A common name for the Nasdaq 100 index, which tracks 100 of the largest non-financial companies listed on the Nasdaq.
Is US30 the same as the Dow Jones?
Yes. US30 is a common broker name for the Dow Jones Industrial Average.
What time is best to trade US indices?
Many traders focus on the US cash open at 9:30 am New York time, the most active period, though it's also the most volatile.
Should I trade index CFDs or futures?
CFDs allow small sizes through a broker; futures have standard exchange contracts and transparent volume. The right choice depends on your account size and access.
Keep learning
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