CAC 40 Stock Index

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

The CAC 40 Trade Chart

The CAC 40 trade chart is displayed and illustrated above. On the example above this Index is named as FRA40CASH. As a trader you want to find a broker that provides this CAC 40 trade chart so that you can start to trade it. The example above is of CAC 40 on the MT4 Forex & Stock Indices Trading Software.

Other Trading Information about the CAC 40 Index

Official Symbol - CAC:IND

The 40 components stocks that makes up CAC 40 are picked from the top companies in France. The Index calculation is reviewed quarterly.

Strategy for Trading the CAC 40 Stock Index

CAC 40 tracks the capitalization of top 40 companies in France. This index generally 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 doing well most of these top stocks will continue to move up & therefore this index will also move in an upward trend. A good index trade strategy would be to keep buying the dips.

During Economic SlowDown and Recession

During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.

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

Contracts & Specifications

Margin Required Per 1 Lot - € 40

Value per 1 Pips - € 0.1

NB: Even though the general trend is generally upward, as a trader you have to factor in the daily market volatility, on some days the stock index might oscillate or even retrace, stock index market retracement might also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock index trading strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index trading topics: What is stock index money management & stock index money management methods.