EU 50 Index

EU 50 shows trend movement of top 50 Blue Chips Stocks in EuroZone. These stocks are selected from most profitable economic sectors of Euro Zone economy. These Top 50 Stocks are chosen and selected from a variety of Euro Zone countries. These are the 50 most liquid stocks in the EuroZone. The countries which are 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 & stocks, this Index chart can be traded just like fx charts.

EU 50 chart market movement can be analyzed & interpreted using technical analysis and other indicators can be added on this Index Trade Chart.

EU 50 Chart

EU 50 chart is shown & displayed and illustrated and shown below. On the exemplification laid-out below this financial instrument is referred to as EU50CASH. As a trader you want to find a broker that offers EU50 Stock Index chart so that as you as a trader can begin to trade it. The example Which is displayed below is that of EU 50 on MT4 Forex Platform.

Trading EU 50 Strategy - EU 50 Strategies Example

Just as 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 to trade these Stock Index.

Other Info about EU 50 Index

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

Official Index Symbol - SX5E or SX5E:IND

The 50 component stocks which make up the EU 50 are reviewed once each year to figure out if to change the components or not.

Strategy to Trading EU 50 Index

EU 50 is composed of blue chip stocks/shares 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 in general keep heading up and up because the companies behind these shares are the best and most profitable companies in Europe.

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

As a index trader you want to be biased & keep on buying as the index moves upwards. When the economies in Europe are performing and doing well this upward market trend is more than likely to be in place. A good strategy for trading this stock index would be to keep buying and buy the dips.

During Economic Slow Down & Recession

During economic slow down recession periods, firms begin reporting slower revenues, lower profits & lowers growth prospect. It is because of this reason that traders begin & start to sell stocks/shares of corporations that are recording & reporting lower profits & hence stock index tracking these particular stocks will also start to move downwards.

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

Contracts and 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 move in a range or even pull back, market retracement might & may also be significant some times & therefore as the trader you need to time your entry strictly using this trading strategy: trading strategy & at the same time use the suitable and proper and suitable money management techniques & guidelines in case there's unexpected volatility in the market trend. About stock index money management guidelines and strategies courses: What's index equity management and money management plan/system.

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