IT 40 Stock Index
The IT40 index tracks the top 40 most traded stocks in Borsa Italiana – The Italian Stock Exchange Market. This stock index is also referred to as the Italian 40 Index. The 40 stocks included in this index are picked from the most traded stocks from the most lucrative industries in the Italian economy.
The IT 40 Index Chart
The IT 40 Index chart is shown above. On the example above this financial instrument is named as IT40CASH. As a trader you want to find a broker that provides this The IT 40 Index chart so that you can start to trade it. The stock index example above is of IT 40 Index on the MetaTrader 4 Forex and Index Trading Platform.
Other Information about IT 40 Stock Index
Official Index Symbol – IT40:IND
The 40 component stocks that make up the IT 40 Index are picked from the top Italian companies that are most profitable. These stocks are also picked from the most lucrative industries in the Italian economy.
Indices Trading Strategy for IT 40 Index
The IT 40 index generally moves up over the long term because the stocks picked represent the best sectors in the Italian economy therefore in general this index will keep moving up over time – because these sectors will be doing booming business.
As a trader wanting to trade this index, you want to be more biased towards the upward trend direction of this index.
As a trader you want to keep buying as the index moves up. When the Italian economy is doing well (most of the times it is doing well) this upward trend is more likely to be ruling. A good strategy would be to buy 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.
Margin Required Per 1 Lot - € 250
Value per 1 Pip - € 1
Note the pip value of the IT40CASH is € 1 compared to the value of other stock index such as Germany DAX and EURO STOXX whose value of 1 pip per lot is € 0.1 – However, the average pip movement for this index is much lower as compared to other stock index such as DAX 30 and EURO STOXX.
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 indices trading topics: What is stock index money management and stock indices trading money management methods.