US500 is the name many brokers give to a CFD that tracks the S&P 500, the index of about 500 of the largest companies listed in the United States. The index is weighted by market value, so the biggest companies move it most. A US500 CFD lets you take a position on the level of the index, in either direction, without owning any shares.
Key takeaways
- The S&P 500 covers roughly 80% of the value of the US stock market and is the most widely followed equity benchmark in the world.
- It is weighted by float-adjusted market value. The ten largest companies make up more than a third of the index.
- Brokers use names such as US500 because “S&P 500” is a trademark; the CFD follows the same index.
- The index is driven by company earnings, interest rate expectations and economic data.
- Market-wide circuit breakers halt US share trading if the index falls 7%, 13% or 20% in a day.
| Tracks | S&P 500 index |
|---|---|
| Constituents | About 500 large US companies, chosen by a committee |
| Weighting | Float-adjusted market capitalisation |
| Coverage | Roughly 80% of US equity market value |
| Cash session | 09:30–16:00 New York · 13:30–20:00 UTC summer / 14:30–21:00 winter |
| Rebalanced | Quarterly, in March, June, September and December |
| Value per index point | Shown in the symbol specification in MetaTrader 5 |
| Symbol at Marketsall | US500 |
What is the S&P 500?
The index is maintained by S&P Dow Jones Indices. To be included a company must be based in the United States, be large and liquid enough, and have reported positive earnings; a committee makes the final choice. Each company’s weight is its market value, counting only shares available to the public, as a share of the total. When a large company’s share price rises, the index rises more than when a small one does.
Why a few companies matter so much
| Feature | Market-value weighted (S&P 500) | Price weighted (Dow Jones) | Equal weighted |
|---|---|---|---|
| What sets a company’s influence | Its total market value | Its share price | Nothing: all are equal |
| Effect of the largest companies | Very large | Depends on share price, not size | Same as the smallest |
| Result | Tracks the value of the market | Historical convention | Tilts towards smaller companies |
With more than a third of the index in ten companies, mostly technology-related, the results of a few firms can decide the direction of the whole index on a given day. That is most visible during earnings season. The three US benchmarks are compared in S&P 500 vs Nasdaq 100 vs Dow Jones.
How does a US500 CFD work?
| Step | Explanation |
|---|---|
| 1. The quote | The CFD is quoted in index points, for example 6,500.0, with a bid and an ask. |
| 2. Value per point | The specification states how much one point is worth per lot. |
| 3. Profit or loss | Points moved × value per point × lots. |
| 4. Exposure | Index level × value per point × lots. At 6,500 with $1 a point, one lot is $6,500 of exposure. |
| 5. Margin | A fraction of that exposure, set by the leverage for indices. |
A 1% move at 6,500 is 65 points. If one point is worth $1 per lot, that is $65 per lot. Index CFDs come in two types: cash-based, which follow the index itself and adjust for dividends, and futures-based, which follow a futures contract and roll over each quarter. See cash index CFDs vs index futures CFDs.
What moves the US500?
| Driver | How it tends to work | What to watch |
|---|---|---|
| Company earnings | Share prices follow profits and guidance. The largest companies matter most. | earnings reports, earnings guidance |
| Interest rates | Lower expected rates raise the present value of future profits; higher rates lower it. | FOMC meetings, Treasury yields, how interest rates affect stocks |
| Economic data | Growth supports profits, but strong data can also mean higher rates. | US CPI, Non-Farm Payrolls, why good news can make markets fall |
| Risk sentiment | Fear raises volatility and lowers valuations. | the VIX, risk-on vs risk-off |
| Policy and politics | Tax, trade and regulatory changes affect profits directly. | Budget and tariff announcements |
When does the US500 trade?
Full timings, including the European open and clock changes, are in index CFD trading hours. Results from the largest companies are usually published after the 16:00 New York close, which moves the index out of hours; see why stocks move so much after earnings.
What are circuit breakers?
| Level | Fall in the S&P 500 from the previous close | What happens |
|---|---|---|
| 1 | 7% | Trading halts for 15 minutes if before 15:25 New York time |
| 2 | 13% | Trading halts for 15 minutes if before 15:25 |
| 3 | 20% | Trading stops for the rest of the day |
During a halt the underlying shares do not trade, and CFD pricing may be suspended or widened. The breakers were triggered four times in March 2020. They slow a fall; they do not prevent gap risk.
What it costs to trade the US500 as a CFD
An index cannot be bought directly. A US500 CFD tracks its level, and your account is credited or debited with the change. See what a CFD is and index trading.
| Cost | When it applies | Note for the US500 |
|---|---|---|
| Spread | Every trade, at entry | Tightest in the US cash session; several times wider overnight |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | Charged daily on positions held past the rollover. |
| Dividend adjustment | Cash-based index CFDs, when constituent shares go ex-dividend | Long positions are typically credited and short positions debited, so that the index’s fall on the ex-dividend date creates no profit or loss. |
| Contract rollover | Only if the CFD is based on a futures contract | The price adjusts when the underlying contract changes. |
| Slippage | Fast markets, gaps, news | Most likely at the cash open, on major data and after-hours earnings |
Key risks
Concentration. A few companies can move the whole index.
Overnight gaps. Earnings and news arrive when the cash market is closed.
Rate sensitivity. Fed surprises move equities and bonds together.
Leverage. Daily moves of 1–2% are common and much larger ones occur. See how leverage increases trading risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
How is the S&P 500 calculated?
The S&P 500 is weighted by float-adjusted market capitalisation. Each company’s weight is the market value of its publicly available shares divided by the total for all constituents, so the largest companies have the most influence on the index.
How much is one point worth on the US500?
It depends on the broker’s contract size. The symbol specification states the value of one index point per lot. Profit or loss is the number of points moved multiplied by the value per point and the number of lots.
What moves the S&P 500?
Company earnings and guidance, interest rate expectations set by the Federal Reserve, economic data such as inflation and jobs reports, and overall risk sentiment. Because the index is value weighted, results from the largest companies have an outsized effect.
What happens if the S&P 500 falls 7% in a day?
A 7% fall from the previous close before 15:25 New York time triggers a Level 1 circuit breaker and US share trading halts for 15 minutes. A 13% fall triggers a second 15-minute halt and a 20% fall closes the market for the day.
Related reading
Work out your US500 lot size
Look up the US500 value per point with how to read contract specifications on MT5. Then let position sizing convert the dollar loss you would accept into a lot size, instead of starting from the margin.
Register