Trade Stock Indices

SMI 20 Index

SMI 20 or Swiss Market Index 20 is a stocks market index that keeps track of the top 20 corporations in Six Swiss Exchange in Switzerland. This 20 stocks shown represent the blue chip shares & stocks in 6 Swiss Stocks Market - these are also the most traded and liquid stocks in this bourse.

SMI 20 Index Trading Guide - SMI20 Index Tutorial

SMI 20 Chart

Above is the SMI 20 chart. The aforementioned instance is referred to as SWI20CASH. In order to start trading the SMI20 Index, you need to locate a broker who offers its charts. An example is The case of SMI 20 on MT4 FX & Software/Platform is shown above.

Other Data about SMI20 Index

Official Index Identifier - SMI:IND

The SMI20 index comprises 20 selected stocks from leading corporations in France, which represent the majority of the total trading volume on the SIX Swiss Exchange Market. This calculation is updated on an annual basis.

Strategy for Trading/Transacting SMI 20 Index

SMI20 which keeps track of the capitalization of the top 20 corporations in the Switzerland economy. This stock index in general moves upward over the long term because Swiss economy also shows strong and robust growth. Swiss also has one of the strongest banking system in the globe therefore making the Swiss economy one of the most reliable and solid economy.

As a index trader you want to be biased & keep on buying as the index moves upward. When Swiss economy is doing & performing well and good most of these top stocks/shares will continue to move up and thence this index will also move in an upward trend. A good stock index trade strategy would be to keep buying and buy the dips.

During Economic Slow Down and Recession

When the economy slows down or is in recession, companies start to report less money coming in, less profit, and less chance of growing. Because of this, investors/traders start selling stocks of companies that are reporting less profit, so the stock market and keeping track of these specific stocks also start to go downward.

Thus, during these periods, market trends are significantly more inclined toward bearish movement, and as a trader, you ought to adapt your trading approach to align with the dominant downward trends present in the stock market index you are engaging with.

Contracts and Specs

Margin Requirement for 1 Lot/Contract - CHF 100,

How Much per Point - CHF 0.5

NB: Despite the general upward inclination, a stock index trader must take into account the daily market volatility. On certain days, the index might consolidate within a sideways band or experience a correction or pullback: these retracements can sometimes be significant. Therefore, as the trader, you must precisely time your entry when implementing this trading strategy, while simultaneously employing suitable and appropriate money management techniques and guidelines should unexpected market volatility materialize. Regarding capital control guidelines within index topics: consult "What's index money management guidelines & methods and index money management system."

Find More Explanations and Subjects:

Stock Indices Broker