IT 40 Stock Index

IT40 index keeps track of the top 40 most traded stocks in Borsa Italiana - Italian Stocks Market. This index is also referred to as the Italian 40 Index. The 40 stocks included in this stock index are chosen from most traded stocks from the most lucrative industries in the Italian economy.

Best Strategies to Trading IT40 Guide - IT40 Tutorial Strategy

The IT 40 Trade Chart

The IT 40 chart is displayed and shown and displayed above. On the example above this instrument is referred to as as IT40CASH. As a trader you want to find a broker that provides IT 40 trade chart so that you as a trader can start to trade it. Example displayed above is of IT40 on MT4 Forex and Platform.

Other Information about IT 40 Stock Index

Official Symbol - IT40:IND

The 40 constituent stocks which constitute IT40 are selected from the best performance Italian corporations which are most profitable. These stocks are also picked from the most lucrative industries within the Italian economy.

Strategy of Trading IT 40 Stock Index

IT 40 index generally moves upward over the long term because stocks choosen represent the best sectors in Italian economy hence in general this stock 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 toward upwards trend direction of this index.

As a trader you want to buy as the stock index moves upwards. When Italian economy is performing good (most times it's performing good) this upward trend is more likely to be in-favor. A good indices trade strategy would be to buy dips.

During Economic Slow-Down & Recession

During economic slow-down & recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that traders start to sell stocks of companies which arereporting lower profits and therefore index tracking these particular stocks will also start to move downward.

Hence, during these times, market trends are likely to be moving downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.

Contracts and Details

Margin Requirement for 1 Lot - € 250

Value per 1Pip - € 1

Note pips size of the IT40CASH is € 1 compared to the size of other stock index such as Germany DAX & EURO STOXX whose size of 1 pip per lot is € 0.1 - However, average pips movement for this index is much lower as compared to other stock index such as DAX 30 & EURO STOXX.

NB: Even though general trend is generally move upwards, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may oscillate or even retrace, market pull back might also be substantial at times & therefore as a trader you need to time your trade entry precisely using this trading strategy: Indices trade strategy & at the same time use proper money management principles just in case of more unexpected volatility in the market movement. About money management principles in index topics: What is money indices management & index equity management strategies.

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