IT 40 Index

IT40 index keeps track of the top 40 most traded shares in Borsa Italiana - Italian Stocks Exchange Market. This index is also referred to & known 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 IT40 Guide - IT40 Guide Strategy

The IT40 Trade Chart

The IT 40 chart is displayed and illustrated and shown & displayed above. On the example shown above this trading instrument is known as as IT40CASH. As a trader you want to look for & find a broker that provides IT40 trade chart so that as you as a trader can begin to trade it. Example displayed above is of IT40 on MT4 Software Platform.

Other Data about IT 40 Index

Official Symbol - IT40

The 40 component stocks/shares which constitute IT40 are chosen 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 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 heading upward over time - because these sectors will be doing flourishing 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 doing good (most times it is performing good) this upwards market trend is much more likely to be the one ruling. A good indices strategy would be to buy dips.

During Economic Slow Down and Recession

During economic slow down recession periods, companies start reporting slower earnings, lower profits and lower business growth forecasts. It is due to this reason that traders begin to sell stocks & shares of companies which are posting & reporting lower profits and therefore index tracking these particular stocks will also start to move downwards.

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

Contracts and Details

Margin Requirement per 1 Lot/Contract - € 250

Value per 1 Pip(Point) - € 1

Note pips size of the IT40CASH is € 1 compared to the size of other stock index such as Germany DAX & EUROSTOXX 50 whose size of one 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 and EURO STOXX.

NB: Even though general trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some days the index may oscillate or even retrace, market pull back might also be substantial sometimes & therefore you as the trader you need to time your entry precisely using this strategy: Stock Index trade strategy & at the same time use appropriate and proper and appropriate money management strategies and guidelines just in case of unexpected market volatility. About money management principles in index topics: What is money indexes management and index equity management methods/strategies.

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