Indices
An index measures the combined behaviour of a basket of shares. The S&P 500 is the 500 largest US companies; the IBEX 35, Spain's 35 most liquid. You cannot buy an index directly: you trade it through futures, ETFs, options or CFDs.
By the TradingCalculator.Pro team · Updated on · About us
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Frequently asked questions
What is the S&P 500 and how is it calculated?
It is an index of the 500 largest listed US companies, weighted by float-adjusted market capitalization: the more a company is worth on the market, the more it weighs. S&P Dow Jones Indices maintains it and reviews constituents quarterly. It represents about 80% of US market capitalization.
What are the major stock market indices in the world?
S&P 500, Nasdaq 100 and Dow Jones in the United States; DAX (Germany), CAC 40 (France), FTSE 100 (UK), IBEX 35 (Spain) and Euro Stoxx 50 in Europe; Nikkei 225 and Hang Seng in Asia. The first three set the tone for the rest: when the S&P 500 falls, almost everything falls with it.
Can you buy an index directly?
No. An index is a calculated number, not an asset. You get exposure through ETFs that track it (SPY, VOO for the S&P 500), futures (ES, MES), index options, or CFDs. Each instrument carries different costs and risks.
Why does the DAX outperform the IBEX over the long run?
Partly because the DAX is a total return index: it reinvests dividends inside the index itself. The published IBEX 35 is price return and excludes them (a "with dividends" version exists but is barely quoted). Comparing a total return index with a price return one wildly exaggerates the real difference.
How much is one S&P 500 point worth in futures?
On the E-mini (ES), $50 per point. On the Micro E-mini (MES), $5 per point. With the index at 5,400, one ES contract controls $270,000 of notional and one MES, $27,000.