EU 50 Index

EU 50 shows trend movement of top 50 Blue Chips Stocks in Euro-Zone. These stocks are picked from most lucrative economic sectors of EuroZone economy. These Top 50 Stocks are selected from a variety of EuroZone countries. These are the 50 most traded stocks in the Euro-Zone. The countries that Included are 12 in total and these are:

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

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

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

EU 50 Chart

EU 50 chart is illustrated and shown & displayed below. On the example below this financial instrument is referred to as as EU50CASH. As a trader you want to find a broker that provides EU 50 chart so that you as a trader can start to trade it. The example Which is shown below is that one of EU 50 on MT4 Forex & Software.

Trading EU 50 Strategy - EU 50 Strategies Example

Just as currencies, a stock indices 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 Info about EU 50 Index

Market Time - 0900 - 1800 Central Estern Time

Official Index Symbol - SX5E or SX5E:IND

The 50 constituent stocks that make up the EU 50 are reviewed once each year to determine if to change the composition or not.

Strategy to Trading EU 50 Stock Index

EU 50 is comprised of blue chip stocks choosen from best performing sectors in the Euro-Zone: hence a good index 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 and up because the firms behind these stocks are the best & most profitable firms in Europe.

EU 50 is also reviewed each year so that if one stock isn't doing well then it's replaced with an alternative stock that is doing good. This ensures that most of the time EU 50 will keep heading upward.

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

During Economic Slow-Down and Recession

During economic slow-down & recession times, corporations begin to report lower profits & lower business growth prospects. It's due to this reason that traders begin to sell stocks of corporations that arereporting lower profits & hence stock index tracking these particular stocks will also start to move downward.

Hence, during these times, market trends are likely to be moving downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market stock index that you are trading.

Contracts and Details

Margin Requirement Per 1 Lot - € 40

Value per 1 Pip - € 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 move in a range or even pullback, market pullbackretracement might also be significant at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About stock index money management guidelines courses: What's index equity management & money management methods.

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