CAC 40 Stock Index

CAC 40 is a France Stocks Market Stock Index that tracks performance of top 40 largest stocks in the Euronext Paris Stock Exchange. This index tracks the capitalization of top 40 stocks included.

CAC 40 Chart

CAC 40 chart is illustrated & illustrated above. On example above this Index is named as FRA40CASH. As a trader you want to find a broker that provides this CAC 40 chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of CAC 40 on the MetaTrader 4 FX and Software.

Other Trading Information about the CAC 40 Index

Official Index Symbol - CAC:IND

The 40 constituent stocks that constitute CAC 40 are picked from the top corporations in France. The calculation is reviewed quarterly.

Strategy to Trading the CAC 40 Stock Index

CAC 40 tracks the capitalization of top 40 corporations in France. This index generally moves moves up over longterm because the French economy also shows strong growth.

As a trader you want to be biased & keep buying as the stock index moves up. When the French economy is performing good most of these top stocks will continue to move up and hence this index will also move in an upward trend. A good index trade strategy would be to keep buying the dips.

During Economic SlowDown & Recession

During economic slowdown & recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of firms reporting lower profits & hence the stock index tracking these particular stocks will also begin to move downwards.

Hence, during these times stock index trends are likely to be heading downward & as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you're trading.

Contracts and Details

Margin Required Per 1Lot - € 40

Value per One Pip - € 0.1

NB: Even though the general trend is generally upwards, as a trader you've to factor in the daily market volatility, on some days the stock index might move in a range or even pullback, market pullback might also be significant at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: Stock strategy and at same time use proper equity management guidelines just in case of more unexpected volatility in the market trend. About equity management guidelines in index topics: What's index equity management and index equity management methods.