AEX 25 INDEX - Amsterdam Bourse Index
AEX is a stock market index used to track the performance of top 25 stocks on the NYSE Euronext Amsterdam Bourse in Netherlands. The NYSE Euronext Amsterdam Bourse was formally known as Amsterdam Bourse.
The 25 companies used to calculate this index are re-evaluated quarterly every year. This index tracks on the capitalization of top 25 companies.
The AEX 25 Trade Chart
The AEX 25 trade chart is displayed & displayed above. On example above this Index is named as NETH25CASH. As a trader you want to find a broker that provides this AEX 25 trade chart so that you can start to trade it. Example displayed above is of AEX 25 on the MT4 Forex & Platform.
Other Trading Information about the AEX 25 Stock Index
Official Symbol - AEX:IND
The 25 components stocks which constitute AEX 25 are chosen from the top corporations in Netherlands. The 25 stocks constitute majority of the turnover volume in the NYSE Euronext Amsterdam Bourse. The Index calculation is re-evaluated quarterly every year.
Strategy for Trading the AEX 25 Index
AEX 25 tracks the capitalization of top 25 companies in Netherlands. This index generally moves up over long term because the Netherlands economy also shows strong economic growth.
As a trader you want to be biased & keep buying as the stock index moves up. When the Dutch economy is performing good most of these top 25 stocks will continue moving up and therefore this index will also move in an upwards trend. A good indices trade strategy would be to buy the dips.
During Economic SlowDown & Recession
During economic slowdown & recession times, companies start to report lower profits & lower growth prospect. It is due to this reason that investors start to sell stocks of companies reporting lower profits & hence the stock index tracking these particular stocks will also begin to move downwards.
Hence, during these times trends are likely to be heading downward & as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you are trading.
Contracts and Specifications
Margin Required Per Lot - € 5
Value per Pip - € 0.1
NB: Even though the general trend is generally upward, as a trader you've got to factor in the daily market volatility, on some days the stock index may move in a range or even pull back, market retracement may also be substantial at times & hence as a trader you need to time your entry precisely when using this strategy: strategy & at same time use proper equity management rules just in case of more unexpected volatility in the market movement. About money management rules in index topics: What is stock index equity management & stock index equity management methods.