Comments on: What the heck is the ‘Underlying Product” I am agreeing to buy or sell when trading Stock Indexes? http://www.stockpickins.com/stock-indices/what-the-heck-is-the-underlying-product-i-am-agreeing-to-buy-or-sell-when-trading-stock-indexes/ Cherry Picking The Diamonds From The Stock Market Sat, 03 Apr 2010 23:38:59 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Doctor Deth http://www.stockpickins.com/stock-indices/what-the-heck-is-the-underlying-product-i-am-agreeing-to-buy-or-sell-when-trading-stock-indexes/comment-page-1/#comment-2681 Doctor Deth Mon, 29 Jun 2009 09:04:59 +0000 http://www.stockpickins.com/stock-indices/what-the-heck-is-the-underlying-product-i-am-agreeing-to-buy-or-sell-when-trading-stock-indexes#comment-2681 the stocks that are in the actual index - S&P 500 - an index fund for the S&P 500 with have those 500 stocks included - in the same rations as the Broad index uses to calculate the Index price<br><b>References : </b><br> the stocks that are in the actual index – S&P 500 – an index fund for the S&P 500 with have those 500 stocks included – in the same rations as the Broad index uses to calculate the Index price
References :

]]> By: Rabbit http://www.stockpickins.com/stock-indices/what-the-heck-is-the-underlying-product-i-am-agreeing-to-buy-or-sell-when-trading-stock-indexes/comment-page-1/#comment-2680 Rabbit Mon, 29 Jun 2009 08:21:59 +0000 http://www.stockpickins.com/stock-indices/what-the-heck-is-the-underlying-product-i-am-agreeing-to-buy-or-sell-when-trading-stock-indexes#comment-2680 If you don't know then you shouldn't be doing it. The commonly traded indexes are the Dow Jones Industrials, a basket of thirty companies, and the Standard & Poors 500, which last I saw was only 498 as they had to drop a couple and with this market flux hadn't announced (or figured out) the replacements. You can do the same with some ETFs called DIA and SPY. To hedge your bets in the indexes, may I suggest you buy the ETFs as a store of value should you go too close to the wire on the futures and be called to deliver. The ETFs will hold those stocks and their relative value (NAV) so you sell the ETFs, buy the component stocks, and then you can deliver if called for. Better yet, just buy the ETFs and leave the leveraged stuff alone until you are more ready. <br><b>References : </b><br> If you don’t know then you shouldn’t be doing it. The commonly traded indexes are the Dow Jones Industrials, a basket of thirty companies, and the Standard & Poors 500, which last I saw was only 498 as they had to drop a couple and with this market flux hadn’t announced (or figured out) the replacements.

You can do the same with some ETFs called DIA and SPY. To hedge your bets in the indexes, may I suggest you buy the ETFs as a store of value should you go too close to the wire on the futures and be called to deliver. The ETFs will hold those stocks and their relative value (NAV) so you sell the ETFs, buy the component stocks, and then you can deliver if called for.

Better yet, just buy the ETFs and leave the leveraged stuff alone until you are more ready.

References :

]]>