AEX 25 INDEX – Amsterdam Stock Exchange Index
The AEX Index is a stock market index used to track the performance of the top 25 stocks on the NYSE Euronext Amsterdam Bourse in Netherlands. The NYSE Euronext Amsterdam Bourse was formally known as Amsterdam Stock Exchange Market.
The 25 companies used to calculate this index are reviewed quarterly every year. This index tracks on the capitalization of the top 25 companies.
The AEX 25 Index Chart
The AEX 25 Index chart is shown above. On the example above this Index is named as NETH25CASH. As a trader you want to find a broker that provides this The AEX 25 Index chart so that you can start to trade it. The stock index example above is of AEX 25 Index on the MetaTrader 4 Forex and Stock Indices Trading Platform.
Other Information about AEX 25 Index
Official Symbol – AEX:IND
The 25 component stocks that make up the AEX 25 Index are picked from the top companies in Netherlands. The 25 stocks make up most of the trading turnover volume in the NYSE Euronext Amsterdam Stock Exchange Market. The Index calculation is reviewed quarterly every yearly.
Strategy for Trading AEX 25 Index
The AEX 25 Index tracks the capitalization of the top 25 companies in Netherlands. This index generally moves up over the long term because the Netherlands economy also shows strong economic growth.
As a trader you want to be biased and keep buying as the index moves up. When the Dutch economy is doing well most of these top 25 stocks will continue to move up and therefore this index will also move in an upward trend. A good stock index trading strategy would be to keep buying the dips.
During Economic Slow Down and Recession
During economic slowdown and recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also start to move downwards.
Therefore, during these times stock index trends are likely to be heading downwards and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you are trading.
Contracts and Specifications
Margin Required Per 1 Lot - € 5
Value per 1 Pip - € 0.1
Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock index may oscillate or even retrace, the stock index market retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock index trading topics: What is stock index money management and stock index money management methods.