IT 40 Index

IT 40 index keeps track of the top 40 most traded stocks in Borsa Italiana - Italian Bourse. This stock index is also referred to & known as the Italian 40 Index. The 40 shares included in this index are chosen from most traded stocks from the most lucrative industries in the Italian economy.

How to Trade IT 40 Index Trade System - IT 40 Strategies

The IT 40 Trade Chart

The IT 40 chart is displayed and illustrated and shown & displayed above. On the example shown above this trading instrument is named as IT40CASH. As a trader you want to find a broker who provides IT 40 trade chart so that as you as a trader can begin to trade it. Example displayed above is of IT-40 on MetaTrader 4 Software Platform.

Other Information about IT 40 Index

Official Symbol - IT40

The 40 component stocks/shares which constitute IT 40 are chosen from the best performing Italian companies that are most profitable. These stocks are also picked from most profitable industries within the Italian economy.

Trade Strategy for IT 40 Index

IT 40 index generally moves upwards over the long-term because shares choosen represent the best sectors in Italian economy therefore in general this index will keep moving up over time - because these sectors will be doing flourishing business.

As a trader wanting to trade this stock index, you want to be more biased toward upwards trend direction of this stock index.

As a trader you want to buy as the index moves upwards. When Italian economy is doing good (most times it is doing well) this upward trend is more likely to be the one that is present. A good strategy for traders to use when trading this stock index would be to buy dips.

During Economic Slow-Down and Recession

During economic slow down & recession periods, companies begin reporting lower earnings, lower profits & lower business growth prospects. It is due to this reason that traders begin & start to sell stocks/shares of companies which are announcing and recording lower profits and thence index tracking these particular stocks will also start to move downwards.

Hence, during these times index trends are much more likely to be heading downwards & as a trader you should also adjust your trade strategy accordingly to fit the current downward trends of the stock market index which you're trading.

Contracts Details

Margin Requirement per 1 Lot/Contract - € 250

Value per 1 Pip(Point) - € 1

Note pips size of the IT40CASH is € 1 compared to the size of other indices like Germany DAX and EUROSTOXX whose size of one pip per lot is € 0.1 - However, average pips movement for this stock index is much lower as compared to other indices like DAX 30 and EURO STOXX.

NB: Even though general trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some of the days the index may oscillate or even retrace, market pull back may also be substantial sometimes and hence you as the trader you need to time your entry precisely using this trading strategy: trade strategy & at the same time use proper/appropriate money management guidelines and methods just in case of unexpected volatility in the market. About index equity management methods/guidelines courses: What is index equity management and indexes trading equity management strategies/methods.

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