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If you like volatile stocks, then we’ve got a bit of vol for ya ere son… As they say, or did say, back when broker wore piped jackets, suits and hung around on “the floor”.
I digress, however, if you like trading tech stocks which are generally the more volatile main market constituents, XTB has launched an index comprising the top ten tech stocks…
When we reviewed XTB, we did highlight a great feature on their platform that allows you to build your own index of stocks, cryptos, commodities or whatever you like really into a single traded asset. These are not really assets or indices, but the platform will execute the trades simultaneously so you can trade them as a basket.
Anyway, XTB has created one for the top ten tech stocks for you so you can trade it as an index, rather than worry about the individual constituents changing.
Info from XTB below…
Trade technological giants in one index with XTB
Online FX & CFD broker XTB has announced the launch of its new FANG+ index market, which includes the 10 largest technology companies in the world. In the period between 19 September 2014 and 18 January 2019, the index offered an average annual return rate of 23.48%.
Companies from the FANG index – including Facebook, Amazon, Netflix and Google – account for 90% of the increase in the S&P500 index from the beginning of 2015. The total capitalisation of the ‘Big Four’ companies in this index increased by $630 billion, whereas the remainder of the companies that make up the US benchmark only increased market cap by a total of $45 billion. It’s therefore clear that the increases in the S&P500 index in recent years are based mainly on the strength of companies from the FANG index.
With that in mind, XTB has announced its introduction of the CFD instrument based on the NYSE FANG+ index, based on a forward contract quoted on the ICE exchange. From the first day of launch, XTB clients are able to open both long and short positions from 3:30pm to 10:00pm Monday to Friday. The FANG+ index includes the 10 largest technology companies in the world which are in full here: Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), Alphabet (GOOGL), Alibaba (BABA), Baidu (BIDU), Nvidia ( NVDA), Tesla (TSLA) and Twitter (TWTR).
These technology companies have revolutionised the way in which we live, and have attracted heavy interest from investors in recent years, achieving huge success with share prices increasing several times over in a relatively short space of time. Currently, they are among the largest corporations listed on Wall Street, but there is no shortage of opinions that their valuations are too high. Therefore, it is important that investors have the opportunity to obtain exposure to both the potential increase and drop in their value, which is available on CFD instruments. Filip Kaczmarzyk, Head of Trading at the European headquarters, commented:
‘We have decided to make this instrument available to our clients because it gives access to an interesting and dynamically developing market segment. This is an index that brings together companies that are global technology giants. We always try to meet the requirements of our clients and at the same time be able to offer them the widest range of instruments. The NYSE FANG+ index is another one of them. Some specialists say that this segment will grow, others that the market is already overheated, so it is interesting from a trading point of view and is important to our clients that we provide the possibility of opening both long and short positions.’
The FANG+ index will be available on XTB’s xStation trading platform from February 4, 2019.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.