Trade the Remote Economy index

Take a position on “remote-economy” stocks

  • Trade the top 20 relevant US companies
  • Includes big names such as Amazon, Netflix and Zoom
  • Margins as low as 5%
  • Go long or short
  • Spreads from 6 pts

Here today, but where to tomorrow?

The 20 biggest US-headquartered companies who derive at least 80% of their revenue from videoconferencing, online food delivery, online gaming, telemedicine, entertainment streaming and E-retailing all qualify for this index.

This was a sector that performed extraordinarily well during the early stages of lockdown in spring and summer 2020. But it has run a choppier course since and commentators are divided about the likely long-term direction of travel in these companies.

Long-term issues to bear in mind are the potential for rising interest rates to threaten the share price of some of the high-growth companies in this index. On the other hand, the work-from-home mentality may not be easily shook and some traders will doubtless seek opportunities to go long in this index.

Trade the Remote Economy index

Quick facts

This is an index designed to measure the market performance of the top 20 North American publicly listed companies who provide services that drive what we have come to know as the “remote economy”.

The index is weighted by free float market capitalisation and rebalanced on a quarterly basis. At any one time, the single biggest constituent might command more than 10% of the index with the smallest a fraction of 1%.

  • Number of constituents: 20
  • Market hours: 14:30 – 21:00
  • Spread: Fixed (6 points)

Have remote stocks had their day in the sun?

It may be a long time before remote economy stocks can again enjoy quite the lift-off they did in Q2 and Q3 of 2020. Traders looking to short this index will be seeking robust signals of a possible full-stop to the cycle of lockdowns and partial re-openings.

On the other hand, there are signals that offices will never be as heavily populated as they were prior to the pandemic, and that most people will remain indebted to the kind of in-home online services they have come to take for granted.

Traders certainly need to be across industry developments, and our own market analysts can bring you the kind of information you need to make educated trading decisions.

NEWS & ANALYSIS

How to trade the Remote Economy index

Think of the big-name brands that make their money from people spending via home computers and smart TVs. Amazon, Netflix, eBay and Zoom are all constituents of the Remote Economy index. The more of our monthly outgoings we spend on these companies, the better the index performs.

You can elect to go long or short (buy or sell) the Remote Economy index without ever owning the stocks in the relevant economies.

Traders may judge the market on technical indicators, fundamental analysis, or by reacting to news. To help you further, our charts showing price action come with technical indicators and drawing tools as standard.

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