IT 40 Stock Index

IT 40 index keeps track of the top 40 most traded stocks in Borsa Italiana - Italian Stocks Market. This stock index is also referred to as the Italian 40 Stock Index. The 40 stocks 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 shown and displayed above. On the example above this instrument is named as IT40CASH. As a trader you want to find a broker that provides IT 40 trade chart so that you as a trader can start to trade it. Example displayed above is of IT-40 on MT4 Software.

Other Information about IT 40 Stock Index

Official Symbol - IT40:IND

The 40 constituent stocks which constitute IT40 are selected from the best performing Italian companies that are most profitable. These stocks are also picked from most lucrative industries within the Italian economy.

Trade Strategy for IT 40 Stock Index

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

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

As a trader you want to buy as the index moves upwards. When Italian economy is performing good (most times it's performing good) this upwards trend is more likely to be in-favor. A good index 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 and therefore index tracking these particular stocks will also start to move downward.

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

Contracts Details

Margin Requirement for 1 Lot - € 250

Value per 1Pip - € 1

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

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

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