The EU 50 Index

EU 50 represents movement of the top 50 Blue Chip Stocks in the Euro-Zone. 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 the Euro-Zone. The countries that 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 currencies and stocks, & this Index chart can be traded just like forex charts.

The EU 50 trade chart movement can be analyzed using technical analysis and other indicators can be placed on this Stock Index Chart.

The EU 50 Chart

The EU 50 trade chart is displayed & shown & displayed below. On the example below this financial instrument is named as EU50CASH. As a trader you want to find a broker that provides EU 50 chart so that you as a trader can begin to trade it. Example displayed below is of EU-50 on MetaTrader 4 Platform Software.

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

Just like currencies, a stock indices 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 Indices.

Other Information about EU 50 Stock Index

Market Time - 0900 - 1800 Central Estern Time

Official Symbol - SX 5E or SX5E:IND

The 50 components stocks that constitute the EU 50 are re-evaluated once each year to determine if to change this composition or not.

Trade Strategy of Trading EU 50 Stock Index

EU 50 is comprised of blue chip 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 times. This is because in general the best stocks in Europe will generally keep moving up & up because the corporations behind these stocks are the best & most profitable corporations in Europe.

The EU 50 is also revised each year so that if a stock isn't doing well then it is replaced with another stock that's doing good. This ensures most of the time EU50 will keep going upwards.

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

During Economic Slow-Down & Recession

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

Hence, 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 Details

Margin Requirement for 1 Lot - € 40

Value per 1Pip - € 0.1

NB: Even though general trend is generally move upwards, as a stock index trader you have to factor in daily market volatility, on some days the stock index may oscillate or even retrace, market pull back might also be substantial at times & hence as a trader you need to time your trade entry precisely using this strategy: Stock Indices trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market movement. About stock index money management principles courses: What is index money management & index equity management strategies.

Get More Topics: