EURO STOXX 50 Index

EURO STOXX 50 represents the market trend movement of the top 50 Blue Chips Stocks in EuroZone. These stocks are picked from most lucrative economic sectors of the Euro-Zone economy. These Top 50 Stocks are picked from a variety of Euro-Zone countries. These are the 50 most traded and liquid stocks in EuroZone. The countries which are Included are 12 in total and these are:

Germany
Netherlands
France
Belgium
Spain
Portugal
Finland
Italy
Ireland
Austria
Luxembourg
Greece

EURO STOXX 50 is represented on a chart as a Financial Instrument just like forex currencies and stocks, & this Index trade chart can be traded and transacted just like fx charts.

EUROSTOXX 50 trading chart movement can be analyzed using technical analysis and other indicators can be placed on this Index Trade Chart.

EURO STOXX 50 Chart

EURO STOXX 50 chart is displayed & illustrated and shown below. On the exemplification laid-out below this financial instrument is named as EU50CASH. As a trader you want to find a broker that provides EURO STOXX 50 chart so that you as a trader can begin to trade it. The example That is illustrated below is that of EURO STOXX Index on MetaTrader 4 Forex & Software Platform.

The EUROSTOXX 50 Index Guide - EUROSTOXX50 Index

Just as currencies trading, a stock index trader can use their own strategy or trading system to trade these index the same way that they trade currencies. Traders can even use their Expert Advisors/EAs to trade these Stock Index.

Other Information about EUROSTOXX 50 Index

Market Time - 0900 - 1800 Central Eastern Time(ET)

Official Stock Index Symbol - SX 5E or SX5E:IND

The 50 constituent stocks which make up the EUROSTOXX50 are reviewed once every year to figure out if to change the composition or not.

Strategy for EUROSTOXX 50 Index

EUROSTOXX 50 is comprised of blue chip stocks choosen from best performing sectors in the EuroZone: hence a good index trade strategy to trade EUROSTOXX50 is to trade long most of the times. This is because in general the best stocks in Europe will in general keep moving up & up because the firms behind these stocks are the best & most profitable corporations in Europe.

EURO STOXX 50 is also revised every year so that as if a stock isn't doing well then it is replaced with another stock that's doing good. This ensures that most of the times EURO STOXX 50 will keep going and moving up.

As a trader you want to be biased & keep buying as the index moves upward. When European economies are doing well this upwards trend is more than likely to be ruling. A good index trade strategy would be to keep buying and buy the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits and lower growth prospects. It is because of this reason that investors begin to sell stocks of companies that arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.

Therefore, during these times index trends are likely to be moving downwards & 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 Specs

Margin Requirement Per 1 Lot - € 40

Value per 1 Pip(Point) - € 0.1

NB: Even though general trend is in general moves upward, as a indices trader you've got to factor in daily market price volatility, on some days the index might move in a range or even retrace, market retracement may also be substantial some times & therefore as a trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market. About money management rules in stock index lessons: What's stock index equity management and money management strategies.

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