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El Bichote de Los Gráficos🇵🇷
@ElBichoteDeLosGraficos
📚 Interesting Fact! Re: S&P 500 CFDs and ETFs 📚 💎 From my posts, you see me reference the chart of #SPX500USD a lot, however do you actually know what this is? 💎 Have you noticed that you cannot trade #SPX500USD or invest in this on #Public? 💎 Is #SPX500USD the same as the SPDR S&P 500 trust ( $SPY ), that’s the question I will be answering. 💎 Both of these #financialassets have one thing in common. Their commonality lies in the fact that they both #track the performance of the S&P 500 Stock Market index and that ownership is taken of them. However, there are a few key fundamental differences that exist between the two: 💎 #SPX500USD – Is a Contract for Differences ( #CFD ), meaning that is allows you trade and profit from the price movements in any direction, as to whether you think the price of the underlying asset or security (such as the S&P 500) will rise or fall. These are traded over-the-counter ( #OTC ) through a network of brokers, not on major #exchanges like the #NYSE . You do not take ownership of the underlying asset, however you do pay the broker the #spread -the difference between the ask and bid price, as well as the #swap -interest charged for holding the position past the end of the trading day. CFDs are traded on margin, meaning the broker allows you borrow money to leverage or increase the size of the position(s) you are trading similar to trading in the Foreign Exchange Market ( #Forex ), plus they allow you to take long (buy) or short (sell) positions, without the short-selling rules. Thus, it can be shorted at any time. 💎 $SPY (SPDR S&P 500 trust) – Is an exchange-traded fund ( #eft ) traded on the #NYSE . It is a marketable security, meaning it has a share price that allows it to be easily bought and sold on exchanges throughout the day. 💎 Personally, I trade #SPX500USD because of the leverage (margin), ability to amply increase gains (or losses) and trade during the same hours as the #Forex (24/5). On the flip side, I invest in $SPY because of the #dividends and the cost-effectiveness. Sources: 1) https://www.investopedia.com/terms/c/contractfordifferences.asp 2) https://www.investopedia.com/terms/e/etf.asp #longterm10years #possabilities #alittleatatime #buildandgrow #time4change #invest #buythedip #staystrong #evs #accumulation #technicalanalysiswanted #technicalanalysis #daytrader #dollarcostaverage #trading #longterm
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