IBEX 35 Stock Index
IBEX 35 is an Index that keeps track of top 35 stocks in the Bolsa de Madrid - Spanish Stock Exchange Market. This index tracks the capitalization of 35 most liquid stocks in the Madrid Bourse. The components stocks used to calculate this stock index are revised twice per year.
IBEX 35 Chart
IBEX 35 chart is shown and illustrated above. On the example above this Stock Index is named as SPAIN35CASH. As a trader you want to find a broker that provides this IBEX 35 chart so that you can begin to trade it. The example That is illustrated above is that of IBEX 35 on the MT4 Forex Software.
Other Trading Information about the IBEX 35 Index
Official Stock Indices Symbol - IBEX:IND
The 35 component stocks that makes up the IBEX 35 are selected from the top companies in Spain. The 35 stocks make up most of the total trading turnover volume in the Madrid Bourse.
Strategy to Trading the IBEX 35 Index
IBEX 35 tracks the capitalization of top 35 firms in Spain. This stock index in general moves moves up over long-term but it is more volatile in its trend movements. When compared to other indexes such as the EURO STOXX and the DAX 30 which have lower volatility in their trend movements, this index has wider swings in its trend movements.
Over a long period of time this stock index will in general moves move upward, as a trader you want to be biased and keep buying as the index moves up.
A good stock index trade strategy would be to keep buying the dips - though as a trader wanting to trade this index, be prepared for generally much wider swings in trading this stock index.
During Economic SlowDown & Recession
During economic slowdown and recession times, firms start to report lower profits and lower growth prospect. It is because of this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks also will begin to move downwards.
Therefore, during these times, trends are likely to be heading downwards & as a trader you should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock market stock index that you're trading.
Contracts & Specs
Margin Required Per One Lot - € 140
Value per 1Pip - € 1
NB: Even though the general trend is generally move upwards, as a trader you have to factor in the daily market volatility, on some days the stock index might move in a range or even retrace, market retracement may also be significant at times and therefore as a trader you need to mark-time your trade entry precisely using this trade strategy: stock index trading strategy & at same the time use proper equity management guidelines just in case of more unexpected volatility in the market. About equity management guidelines in stock index lessons: What's index equity management and stock index equity money management methods.
