Indices Trading
Published Apr 13, 2022
Updated Mar 11, 2026Market indices are statistical measures that track the performance of a group of stocks, providing a snapshot of the overall market or a specific sector. This article explains how major indices like the S&P 500, Nasdaq-100, Dow Jones, and Russell 2000 are constructed and weighted, what moves them, and how traders can gain exposure to indices through index ETFs, futures, and options.
Trade a variety of index products using options, futures, and exchange-traded funds (ETFs). Take your position with an index product that works for your account size and risk tolerance.
What’s an Index and How Do They Work?
An index is a basket of publicly listed companies’ stock, that captures an entire market or are specific to an industry sector, segment, a particular market or region. Indices work by giving you the opportunity to trade a basket of stocks in a specific index with each stock possibly having a different weight.
What Index Products Can I Trade?
With tastytrade, you can trade an index (e.g., the S&P 500, NASDAQ100, VIX) on our innovative platform. Utilize different products for your portfolio—from cash-settled indices, ETFs, ETNs, index options, and futures—to suit your account size and risk tolerance.
Index Options
You can trade options on an index instead of speculating on individual components of the index such as SPX, VIX, RUT, DJX.
Index Futures
Index ETFs
Diversify your portfolio with index ETFs (exchange-traded funds ETFs), a more capital efficient way of gaining exposure to a specific index.
Trade Indices and Understand the Fee Structure
When trading indices with tastytrade, the fee structure is different from other option products. Familiarize yourself with the fees and costs of trading indices:
| Symbol | Description | Fee per contract |
|---|---|---|
SPX | S&P 500 | $0.65 |
RUT | Russell 2000 | $0.18 |
VIX | CBOE Market Volatility Index | $0.65 |
OEX | S&P 100 (American-style exercise) | $0.40 |
XEO | S&P 100 (European- style exercise) | $0.40 |
DJX | Dow Jones Industrial Average 1/100 | $0.18 |
XSP | Mini-SPX2 | $0.00/$0.07 |
NDX | Nasdaq-100 Index | $0.25 |
| Symbol | Description |
|---|---|
SPX | S&P 500 |
RUT | Russell 2000 |
VIX | CBOE Market Volatility Index |
OEX | S&P 100 (American-style exercise) |
XEO | S&P 100 (European- style exercise) |
DJX | Dow Jones Industrial Average 1/100 |
XSP | Mini-SPX2 |
NDX | Nasdaq-100 Index |
| Symbol | Fee per contract |
|---|---|
SPX | $0.65 |
RUT | $0.18 |
VIX | $0.65 |
OEX | $0.40 |
XEO | $0.40 |
DJX | $0.18 |
XSP | $0.00/$0.07 |
NDX | $0.25 |
How to Trade Indices
- Understand what an index is and how indices work
- Create a tastytrade account or log in
- Create a trading plan and a risk management strategy
- Open your index position, then monitor and close it
Ready to Trade?
This content, including the use of actual symbols, any visual display or other reference to product, type of investment, strategy, or service offered, is for educational purposes only. It is not, nor is intended to be, trading or investment advice or a recommendation that any investment product or strategy is suitable for any person. You are solely responsible for making your own investment and trading decisions and for evaluating relevant factors, including their investment experience, objectives, financial situation, and risk tolerance prior to trading.
Options involve risk and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially significant losses. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
Multi-leg option strategies incur higher transaction costs as they involve multiple commission charges.