Bitget TradFi: A Complete Breakdown of the Three Major U.S. Stock Indexes in CFD Trading
As crypto and traditional finance continue to converge, Bitget TradFi offers users worldwide a new opportunity to trade major global index CFDs (contracts for difference) using USDT as margin, including the three major U.S. stock indices. With Bitget, you do not need a traditional brokerage account, bank wire, or currency conversion. Trading is available 24/7, with leverage up to 500x.
The three major U.S. stock indexes are popular because they are widely seen as a barometer of the global economy, while also offering moderate volatility and strong liquidity. Next, we will explain U.S. stock indexes on Bitget TradFi in detail.
1. What is an index? How is it different from individual stocks (stock tokens) and U.S. stock futures? How do you trade index CFDs on Bitget TradFi?
An index is essentially a weighted measure of a basket of stocks. It reflects the overall performance of a market or a specific sector. The most typical U.S. stock indices are the Nasdaq Composite, the SP 500, and the Dow Jones Industrial Average.
The key differences between these and other Bitget products are shown below:
| Product | Underlying asset | Ownership of underlying asset | Leverage | Settlement | Key features |
| Index CFDs (TradFi) | Index of a basket of stocks | No | Up to 500x | USDT-margined | Directional trading, spread-based pricing, low cost |
| Tokenized stocks | Individual U.S. stock (e.g., AAPL, TSLA) | Synthetic price tracking | Depends on the product | In USDT | Similar to spot trading, the price closely follows the underlying stock |
| Stock futures | Individual U.S. stock or index-based synthetic futures | No | High | In USDT | Perpetual futures, with funding fees |
In a nutshell:
● If you want to trade the overall market trend (e.g., a broad rally in tech), index CFDs are the most straightforward and convenient choice.
● If you want to target a specific company (e.g., NVIDIA earnings beyond expectations), tokenized stocks or stock futures are more suitable.
Simple steps to trade index CFDs on Bitget TradFi:
1. Log in to your Bitget account → head to TradFi.
2. Select "Indices", where you will find common instruments such as NAS100 (Nasdaq), US 500 (SP500), and US 30 (Dow Jones).
3. Transfer USDT to your TradFi account as margin.
4. Choose to go long or short, set the leverage, and place orders (market/limit).
5. The platform provides institutional-grade deep liquidity and very tight spreads, with transaction fees as low as $0.09 per lot (and better rates for VIPs).
2. Different styles of the three major indices: Which is more volatile, Nasdaq, SP 500, or Dow Jones?
Although all three represent the U.S. stock market, they differ significantly in composition and style, just like three players on the field with very different personalities.
● Nasdaq Composite ("Nasdaq"): high growth potential, high volatility, and aggressive. Tech stocks account for over 50%, representing the "new economy". It includes thousands of constituents, but the largest names (the Magnificent Seven including Apple, Microsoft, NVIDIA, Amazon, Meta) carry most of the weight.
Best for: Growth-oriented investors who can tolerate larger volatility, especially those bullish on AI, cloud computing, EVs, and semiconductors. Typical performance: Often posts the largest gains in bull markets, but can suffer the deepest declines in bear markets (it fell more than 30% in 2022).
● SP 500: balanced, steady, and favored by institutions. It covers the 500 largest U.S. companies across technology, finance, healthcare, consumer, industry, and more. It is market-cap weighted and best represents the overall U.S. economy.
Best for: Investors seeking broad exposure to the U.S. stock market and long-term, steady growth. It is also the most widely allocated index for global ETFs and pension funds. Typical performance: Moderate volatility, with a long-term annualized return around 10%, making it the foundation for the majority's portfolios.
● Dow Jones Industrial Average ("Dow Jones" or "Dow"): traditional, defensive, mature, and steady. It contains only 30 best-known blue-chip companies and is price-weighted (not market-cap weighted). It has higher exposure to traditional sectors such as finance, industry, consumer goods, and energy, and lower in tech.
Best for: Investors who prefer stability and resilience during risk-adverse periods. Typical performance: Usually delivers the smallest gains in bull markets, but also tends to decline less in bear markets, often viewed as an "economic barometer".
In a nutshell:
● Nasdaq may be the right choice if you aim for high growth and can tolerate higher volatility to bet on big market swings.
● SP 500 is a steadier way to gain broad exposure to the overall U.S. economy.
● Dow is the more prudent pick if you prefer a defensive portfolio with better downside resilience.
3. Macro events to watch closely in index CFD trading
Index CFDs are essentially macro-driven directional trades, and are therefore highly sensitive to U.S. macroeconomic data and Federal Reserve policies. The following events tend to trigger sharp intraday swings of 50–200+ points, so it's advisable to plan ahead or stay on the sidelines:
| Event | Frequency | Significance | Impact on index | Notes |
| FOMC rate decisions + Powell's press conferences | Eight times a year | ★★★★★ | Strongest impact that shapes market risk appetite | Keep an eye on the "dot plot" and Powell's remarks |
| Nonfarm payrolls (NFP) | Once a month | ★★★★☆ | Strong jobs → stronger USD → indices may face short-term pressure | Most likely to trigger false breakouts then reversals |
| Consumer price index (CPI) | Once a month | ★★★★☆ | Higher-than-expected inflation → rate-hike expectations rise → indices fall | Core CPI is more important. |
| Producer price index (PPI) | Once a month | ★★★☆☆ | A leading indicator that affects next-day CPI expectations | Acts as an inflation prelude |
| GDP growth | Quarterly | ★★★☆☆ | Strong economy growth → stock market gains, but may also trigger concerns about interest rate hikes | Focus on quarterly adjusted annualized growth rate |
| Retail sales, ISM manufacturing PMI | Monthly | ★★☆☆☆ | Reflects consumption and economic momentum | Auxiliary indicators for the economic cycle |
Quick tip: Consider reducing positions or staying on the sidelines within 30 minutes before/after major events, as volatility can spike and liquidation risk increases.
Conclusion
Bitget TradFi offers index CFD products that let more users participate directly in trading the world's most important and most liquid U.S. stock indexes. Whether you are an aggressive trader bullish on an AI-led long-term bull market, or a value-focused investor looking for steady exposure to the U.S. economy, you can find an index that fits your style.
Risk warning: CFD trading involves high leverage and strong market volatility, which may result in the loss of your entire principal. Make sure to assess risks carefully, manage position size, and avoid over-leveraging. For more details, refer to Bitget's official announcements.
The three major U.S. stock indexes are popular because they are widely seen as a barometer of the global economy, while also offering moderate volatility and strong liquidity. We will explain U.S. stock indexes on Bitget TradFi in detail.
