The EU 50 Index

EU 50 represents movement of the top 50 Blue Chip Stocks in the Euro-Zone. These stocks are selected from most profitable economic sectors of the EuroZone economy. These Top 50 Stocks are selected from a variety of Euro Zone countries. These 50 stocks are the most liquid stocks in the Euro-Zone. The countries which are Included are 12 in total & these are:

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

The EU 50 is represented on a chart as a Financial Instrument just like the forex currencies and stocks, and this Index chart can be traded just like fx charts.

The EU 50 trade chart movement can be interpreted/analyzed using technical analysis methods and technical indicators can be placed & added on this Index Chart.

The EU50 Chart

The EU50 trade chart is displayed and illustrated & shown & displayed and illustrated below. On the example laid-out below this financial instrument is named as EU50CASH. As a trader you want to search, look for & find a broker that provides EU50 Index chart so that as you as a trader can start to trade it. Example displayed below is of EU-50 on MT4 Platform Software.

How Do You Trade EU 50 System? - EU 50 Strategies

Just like currencies, a stock indices trader can use their own strategy or system to trade these index the same way that they trade forex currencies. Traders can even use their Expert Advisors/EAs to trade these Indices.

Other Information about EU 50 Index

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

Official Symbol - SX 5E or SX5E:IND

The 50 component stocks which constitute the EU 50 are re-evaluated once each year to figure out if to change this components composition or not.

Trade Strategy of Trading EU 50 Index

EU 50 is composed of blue chip shares/stocks choosen from top performing sectors in the Euro Zone: therefore a good indices trade strategy to trade EU 50 is to trade long most of the time. This is because in general the best shares/stocks in Europe will in general keep heading up and up because the companies behind these shares are the best and most profitable firms in Europe.

The EU 50 is also revised each year so that as if a stock isn't doing/performing well and good then it's replaced with another stock that's doing good. This ensures most times EU50 will keep going and moving upwards.

As a index trader you want to be biased and keep on buying as the index moves & heads upwards. When European economies are doing/performing well this upwards market trend is much more likely to be the one that is current. A good stock index trade strategy would be to buy dips.

During Economic Slow-Down and Recession

During economic slow down & recession periods, companies begin reporting lower earnings, lower profits & lowers growth prospects. It is due to this reason that traders start to sell stocks/shares of companies which are recording and reporting lower profits & therefore stock index keeping track of these particular given stocks also will begin heading and moving downward.

Hence, during these market times, the market trends are likely to be heading & moviing downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stocks market index that you're trading.

Contracts Details

Margin Requirement for 1 Lot/Contract - € 40

Value per 1 Pip(Point) - € 0.1

NB: Even though general trend is in general move upward, as a stock index trader you've got to factor in daily market volatility, on some days the index may oscillate or even retrace, market pull back might also be substantial sometimes & therefore as the trader you need to time your entry precisely using this strategy: Index trade strategy & at the same time use the suitable and proper money management guidelines and methods in case there is unexpected volatility in the market movement. About stock index money management guidelines and methods courses: What is index money management rules & guidelines & index equity management system.

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