New Instruments in Delta Trading

Dear clients,

We would like to inform you that you are able to trade with CFDs on shares of PowerShares QQQ and SPDR Trust Series 1 Exchange Traded Funds.

These securities offer alternative investment in indices because their performance is tracking the NASDAQ 100 Index and S&P 500 Index, which consist of the largest and most actively traded company stocks on the American markets.

The trading margin is 10% and the stock exchange codes are QQQQ and SPY.

The new instruments can be added from the "Quotes" window, followed by selection of the window "Add an Instrument" from the drop-down menu.

PowerShares QQQ and SPDR Trust Series 1 are mutual funds that track the performance of the S&P 500 and NDAQ100 indices, due to the fact that the funds’ mirror their components. Unlike the indices, the ETF funds are being traded as shares on the capital markets. ETFs do not guarantee the exact reflection of the price and profitability of the index but their portfolio management is aimed at achieving the closest possible result to that of the index. One of the major advantages of trading ETFs is their low transaction and operational costs and also the large trading volumes that ensure their high liquidity.

Standard and Poor's Deposit Receipt (SPDR) was created in 1993 and was one of the first ETFs. It presented to the public the possibility to trade the S&P 500 index, without having to invest the full price of the index. This option made the fund a very attractive alternative.

PowerShares QQQ is another variant of index ETF. It is traded on the NASDAQ Stock Exchange and tracks NDAQ 100. Its portfolio holds the same content as NDAQ100 and also aims at achieving price and profitability as close to the indexes’ as possible.

Besides ETFs shares, stock exchange markets trade different derivative instruments based on ETFs.

The following figures illustrate the correlation between SPY and S&P 500, as well as between QQQQ and NASDAQ100.


Daily correlation between NDAQ 100 and QQQQ


Daily correlation between S&P500 and SPY


We wish you successful trading!
Customer Service Department
Deltastock Inc.