CAC 40 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 stock index tracks the capitalization of top 40 stocks included.

CAC 40 Chart

CAC 40 chart is displayed & illustrated above. On example above this Stock 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 stock index generally moves moves up over longterm because the French economy also shows strong growth.

As a trader you want to be biased and 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 & hence this stock index will also move in an upward trend. A good stock index trade strategy would be to keep buying the dips.

During Economic SlowDown and Recession

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

Hence, during these times index trends are likely to be heading downwards and as a trader you should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock market stock 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 move upwards, as a trader you've to factor in the daily market volatility, on some days the stock index may 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 lessons: What's index equity management & stock index money management methods.