AEX 25 INDEX - Amsterdam Stock Exchange Index
AEX Stock Index 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 Stock Exchange Market.
The 25 companies used to calculate this index are reviewed quarterly every year. This index tracks on the capitalization of top 25 companies.
The AEX 25 Stock Index Trade Chart
The AEX 25 Stock Index trade chart is displayed and illustrated above. On the example above this Index is named as NETH25CASH. As a trader you want to find a broker that provides this AEX 25 Stock Index trade chart so that you can start to trade it. The stock index example above is of AEX 25 Stock Index on the MT4 Forex & Stock Indices Trading Software.
Other Trading Information about the AEX 25 Stock Index
Official Symbol - AEX:IND
The 25 components stocks that makes up AEX 25 Stock 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 the AEX 25 Stock Index
AEX 25 Stock Index tracks the capitalization of top 25 companies in Netherlands. This index generally moves up over longterm because the Netherlands economy also shows strong economic growth.
As a trader you want to be biased and keep buying as the stock index moves up. When the Dutch economy is doing well most of these top 25 stocks will continue to move up & therefore this index will also move in an upward trend. A good index trade strategy would be to keep buying the dips.
During Economic SlowDown and Recession
During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.
Therefore, during these times stock index trends are likely to be heading downward and 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 & Specifications
Margin Required Per 1 Lot - € 5
Value per 1 Pips - € 0.1
NB: Even though the general trend is generally upward, as a trader you have to factor in the daily market volatility, on some days the stock index might oscillate or even retrace, stock index market retracement might also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock indices trading strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index trading topics: What is stock index money management & stock index money management methods.
