SX 50 Index

SX 50 represents the 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 50 stocks are the most liquid stocks in EuroZone. The countries that Included are 12 in total & these are:

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

SX 50 is represented on a chart as a Financial Instrument just like currencies & stocks, and this chart can be traded just like forex charts.

SX 50 trading chart movement can be analyzed using technical analysis & other indicators can be placed on this Trade Chart.

SX 50 Trading Chart

SX 50 chart is shown & illustrated and shown below. On the example below this financial instrument is named as SX50CASH. As a trader you want to find a broker that provides SX 50 chart so that you can begin to trade it. The example That is illustrated below is that of SX 50 on MT4 Software.

How Can I Trade SX 50 Trade System? - SX 50 Strategies

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

Other Information about SX 50 Index

Market Time - 0900 - 1800 Central Estern Time

Official Stock Indices Symbol - SX5E or SX5E:IND

The 50 component stocks that make up the SX 50 are revised once every year to determine if to change the composition or not.

Trade System For Trading SX 50 Stock Index

SX 50 is comprised of blue chip stocks choosen from best performing sectors in the EuroZone: hence a good stock index trade strategy to trade SX 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.

SX 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 of the times SX 50 will keep going up.

As a trader you want to be biased and keep buying as the stock 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 buy 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, 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 Specifications

Margin Requirement Per 1 Lot - € 40

Value per 1Pip - € 0.1

NB: Even though general trend is generally move upward, as a stock index trader you have to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be significant at times and hence as a trader you need to time your trade entry precisely when using this trade strategy: trade strategy and at the same time use proper equity management principles 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 index money management strategies.

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