SX 50 Stock Index

SX 50 shows the trend movement of the top 50 Blue Chip Stocks in the Euro-Zone. These stocks are picked from most lucrative economic sectors of the EuroZone economy. These Top 50 Stocks are selected from a variety of EuroZone countries. These are the 50 most traded stocks in the Euro-Zone. The countries that Included are 12 in total & these are:

Germany
Netherlands
France
Belgium
Spain
Portugal
Finland
Italy
Ireland
Austria
Luxembourg
Greece

SX 50 is represented on a chart as a Financial Instrument just like currencies and stocks, & this trading chart can be traded just like currency charts.

SX 50 chart movement can be analyzed using technical analysis and other indicators can be placed on this Trading Chart.

SX 50 Chart

SX 50 chart is illustrated and displayed and portrayed below. On the example below this financial instrument is named as SX50CASH. As a trader you want to find a broker that provides SX 50 chart so that you as a trader can begin to trade it. The example Which is illustrated below is that one of SX 50 on MetaTrader 4 FX Software Platform.

Trading the SX 50 Chart - SX 50 Index

Just as currencies, a stock index trader can use their own strategy or trading system to trade these index the same way that they trade currencies. Traders can even use their Expert Advisors to trade these Indices.

Other Info about SX 50 Stock Index

Market Time - 0900 - 1800 Central Estern Time

Index Symbol - SX5E or SX5E:IND

The 50 component stocks that constitute SX50 are revised once every year to determine if to change the constituents or not.

Strategy to Trading SX 50 Stock Index

SX 50 is comprised of blue chip stocks choosen from best performing sectors in the Euro-Zone: hence a good index trade strategy to trade SX 50 is to trade long most of the times. This is because in general the best stocks in Europe will generally keep moving up and up because the firms behind these stocks are the best & most profitable firms in Europe.

SX 50 is also reviewed each year so that if one stock isn't doing well then it's replaced with an alternative stock that is doing good. This ensures that most of the time SX 50 will keep heading upward.

As a trader you want to be biased & keep buying as the stock index moves upwards. When European economies are doing well this upwards trend is more likely to be in place. A good index trade strategy would be to buy dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, corporations begin to report lower profits & lower business growth prospects. It's due to this reason that traders begin to sell stocks of corporations that arereporting lower profits & hence stock index tracking these particular stocks also will begin 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 - € 40

Value per 1 Pip - € 0.1

NB: Even though general trend is generally moves upwards, as a stock indices trader you have to factor in daily market volatility, on some days the index might move in a range or even pullback, market pullbackretracement may also be significant at times and hence as a trader you need to mark-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 lessons: What's equity management and equity management methods.

More Courses & Tutorials: