EURO STOXX 50 Index
EURO STOXX 50 represents the market trend movement of the top 50 Blue Chips Stocks in EuroZone. These stocks are selected from most profitable sectors of the EuroZone economy. These Top 50 Stocks are selected from a variety of EuroZone countries. These are the 50 most liquid stocks in EuroZone. The countries that 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 currencies & stocks, and this Index trade chart can be traded just like ++forexforex charts.
EURO STOXX 50 trading chart movement can be analyzed using technical analysis & other indicators can be placed on this Stock Index Trade Chart.
EURO STOXX 50 Chart
EURO STOXX 50 chart is shown & illustrated and shown below. On the example 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 can begin to trade it. The example That is illustrated below is that of EURO STOXX Stock Index on MetaTrader 4 Forex & Software Platform.
Just as currencies trading, a 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 to trade these Stock Indices.
Other Information about EURO STOXX 50 Stock Index
Market Time - 0900 - 1800 Central Estern Time
Official Indices Symbol - SX5E or SX5E:IND
The 50 component stocks that make up the EURO STOXX 50 are revised once every year to determine if to change the composition or not.
Strategy for Trading EURO STOXX 50 Stock Index
EURO STOXX 50 is comprised of blue chip stocks choosen from best performing sectors in the EuroZone: hence a good index trade strategy to trade EURO STOXX 50 is to trade long most of the times. This is because in general the best stocks in Europe will generally keep moving up & up because the companies behind these stocks are the best and most profitable companies in Europe.
EURO STOXX 50 is also revised every year so that if a stock is not doing well then it is replaced with another stock that is doing good. This ensures that most times EURO STOXX 50 will keep going 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 the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, firms begin to report lower profits and lower business 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 1Pip - € 0.1
NB: Even though general trend is generally moves upward, as a trader you've to factor in daily market volatility, on some days the index might move in a range or even retrace, market retracement may also be significant at times & therefore as a trader you need to time your trade 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.
