SPAIN 35 Index
SPAIN 35 is a Index that keeps track of the top 35 stocks in Bolsa de Madrid - Spanish Stock Exchange. This index tracks capitalization of the 35 most traded and liquid stocks in Madrid Stock Market. The component stocks used to calculate this index are reviewed twice a year.
SPAIN 35 Chart
SPAIN 35 chart is shown and shown & displayed above. On the example laid-out above this is referred to as as SPAIN35CASH. As a trader you want to find a broker that provides SPAIN 35 chart so that as you as a trader can begin to trade it. Index example shown above is that of SPAIN 35 on MT4 Forex Software.
Other Info about SPAIN35 Index
Official Index Symbol - SPAIN35:IND
The 35 constituent stocks which constitute SPAIN35 are chosen from the top performing firms in the Spain economy. The 35 stocks make up most of total trade turnover volume in Madrid Stock Exchange.
Strategy to Trading SPAIN35 Index
SPAIN35 tracks capitalization of the top 35 companies in Spain. This stock index generally moves upward over the longterm but it's more volatile in its trend movements. When compared to other indices like EUROSTOXX & DAX30 indices which have lower volatility in their trend movements, this index has wider and more volatile swings in its trend movements.
Over a long period of time this index will in general move up, as a trader you want to be biased and keep buying as the stock index moves upward.
A good index trade strategy would be to keep buying and buy the market dips - though as a trader wanting to trade this stock index, be prepared for much wider swings when it comes to trading this index.
During Economic Slow-Down and Recession
During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospects. It is because of 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 downwards trends of the stock market index that you are trading.
Contracts & Details
Margin Requirement Per 1 Lot - € 140
Value per 1 Pip(Point) - € 1
NB: Even though general trend is in general move upwards, as a stock index trader you've got to factor in daily market volatility, on some days the stock index may move in a range or even pull-back, market pullbackretracement might also be significant some times & hence as a trader you need to 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 equity management principles in stock index topics: What's index equity management and equity management strategies.
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