FTSE MIB 40 Index
FTSE MIB index keeps track of the top 40 most liquid stocks in Borsa Italiana - Italian Stocks Exchange Market. This index is also referred to as the Italian 40 Stock Index. The 40 stocks included in this stock index are selected from most liquid stocks from the most profitable industries in the Italian economy.
FTSE MIB 40 Trading Chart
FTSE MIB 40 trading chart is shown & illustrated and shown above. On the example above this instrument is named as IT40CASH. As a trader you want to find a broker that provides FTSE MIB 40 trading chart so that you can begin to trade it. The example That is shown above is that of FTSE MIB 40 on MT4 FX Platform.
Other Information about FTSE MIB 40 Index
Official Indices Symbol - FTSEMIB:IND
The 40 component stocks that make up the FTSE MIB 40 are selected from top Italian companies that are most profitable. These stocks are also picked from the most profitable industries in the Italian economy.
Strategy for Trading FTSE MIB 40 Stock Index
FTSE MIB 40 index in general moves upward over the long-term because stocks choosen represent the best sectors in Italian economy therefore in general this stock index will keep moving up over time - because these sectors will be doing booming business.
As a trader wanting to trade this index, you want to be more biased toward upward trend direction of this index.
As a trader you want to keep buying as the index moves upward. When Italian economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down & recession times, firms begin to report lower profits & lower business growth prospects. It is because of this reason that investors begin to sell stocks of companies that arereporting lower profits & hence index tracking these particular stocks will also begin to move downward.
Therefore, during these times trends are likely to be moving downwards & as a trader you should also adjust your strategy accordingly to fit the prevailing downward trends of the stock market index that you are trading.
Contracts & Specs
Margin Requirement Per 1 Lot - € 250
Value per 1Pip - € 1
Note pips value of the IT40CASH is € 1 compared to the value of other indices such as Germany DAX and EURO STOXX whose value of 1 pip per lot is € 0.1 - However, average pips movement for this index is much lower as compared to other indices such as DAX 30 and EURO STOXX.
NB: Even though general trend is generally 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 might also be significant at times & hence 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 topics: What's money management and money management methods.
