SWI 20 Index

SWI 20 or Swiss Market Stock Index 20 is a stock market stock index that keeps track of the top 20 firms in Six Swiss Exchange in Switzerland. This 20 stocks shown represent the blue chip stocks in Six Swiss Exchange Market - these are also the most liquid stocks in this bourse.

Strategies for Trading SWI 20 - SWI 20 Index

SWI 20 Chart

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

Other Information about SWI 20 Stock Index

Index Symbol - SWI20:IND

The 20 constituent stocks which constitute SWI20 are selected from the top companies in France. The 20 stocks constitute majority of the total trade turnover volume in the SIX Swiss Exchange Market. The calculation is revised yearly.

Strategy for Trading SWI 20 Stock Index

SWI 20 that tracks the market capitalization of top 20 corporations in the Switzerland economy. This index in general moves upwards over the long-term because Swiss economy also shows strong growth. The Swiss also has one of the strongest banking system in the world - making the Swiss economy one of the most reliable economy.

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

During Economic Slow-Down and Recession

During economic slow-down & recession times, firms start to report lower profits & lower business growth prospects. It is because of this reason that investors start to sell stocks of companies that arereporting lower profits & hence index tracking these particular stocks will also start to move downward.

Therefore, during these times, market trends are 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 stock index that you're trading.

Contracts and Specifications

Margin Requirement Per 1 Lot - CHF 100

Value per 1Pip - CHF 0.5

NB: Even though general trend is generally move upward, as a stock index trader you have to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be significant at times and therefore as a trader you need to time your trade entry precisely when using this trade strategy: Stock Indices trade strategy and at the same time use proper equity management rules just in case of more unexpected volatility in the market. About stock index equity management principles courses: What's index money management & stock index equity management methods.

Study More Tutorials and Lessons: