SMI 20 Index

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

SMI 20 Index Trading Guide - SMI20 Index Tutorial

SMI 20 Chart

SMI 20 chart is displayed and displayed above. On example above this is named as SWI20CASH. As a trader you want to find a broker that provides SMI 20 chart so that you as a trader can start to trade it. The example That is illustrated above is that of SMI 20 on MT4 FX & Software/Platform.

Other Data about SMI20 Index

Official Index Symbol - SMI:IND

The 20 constituent stocks which make up the SMI20 are chosen and selected from the top corporations in France. The 20 stocks constitute majority of the overall total trade turnover volume in the SIX Swiss Exchange Market. The calculation is revised yearly.

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 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

During economic slow down & recession periods, firms begin reporting lower revenues, lower profits and lowers growth prospect. It is because of this reason that investors begin to sell stocks of companies that are posting and recording lower profits and hence stock index monitoring and keeping track of these particular specifed stocks also will begin to go & head downward.

Therefore, during these times, market trends are much more likely to be moving downward & 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 and Specs

Margin Requirement Per 1 Lot - CHF 100

Value per 1 Pip(Point) - CHF 0.5

NB: Even though general trend is in general moves upward, as a stock index trader you've got to factor in daily market volatility, on some of the days the index may move & oscillate in a sideways range move or even retrace & pullback, market retracement may also be substantial some times & therefore as the trader you need to time your entry precisely when using this trade strategy: trading strategy & at the same time use the suitable & suitable/proper money management techniques/guidelines in case there's unexpected volatility in the market. About equity management guide-lines in index topics: What's index money management guidelines & methods and index money management system/plan.

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