SX 50 Index

SX 50 shows the trend movement of the top 50 Blue Chip Stocks in the Euro-Zone. These stocks are selected from most profitable economic sectors of the Euro-Zone economy. These Top 50 Stocks are chosen from a variety of Euro Zone countries. These are the 50 most liquid stocks in the EuroZone. The countries which are 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 the forex currencies and stocks, and this trading chart can be traded just like currency charts.

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

SX 50 Chart

SX 50 chart is illustrated and displayed and portrayed below. On the example laid-out below this financial instrument is named as SX50CASH. As a trader you want to find a broker that offers SX 50 Stock Index chart so that as you as a trader can start & begin to trade it. The example Which is illustrated below is that of SX 50 on MT4 Forex Software Platform.

Trading the SX 50 Chart - SX 50 Index

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

Other Info about SX 50 Index

Market Time - 0900 - 1800 Central Eastern Time(ET)

Index Symbol - SX5E or SX5E:IND

The 50 constituent stocks which constitute SX50 are revised once each year to figure out if to change the constituents or not.

Strategy to Trading SX 50 Index

SX 50 is composed of blue chip stocks/shares 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 time. This is because in general the best shares/stocks in Europe will in general keep heading up and up because the companies behind these shares are the best and most profitable companies in Europe.

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

As a index trader you want to be biased and keep on buying as the index moves upwards. When the economies that are based in Europe are performing & doing well this upward trend is more than likely to be in place. A good strategy to trade this index would be to buy dips.

During Economic Slow-Down & Recession

During economic slow down recession periods, corporations begin reporting slower revenues, lower profits & lower business growth prospect. It is because of this reason that traders start to sell stocks/shares of corporations that are posting lower profits & hence stock index keeping track & monitoring of these particular given stocks will also start heading & going downward.

Hence, during these times, market trends are a lot more likely to be moving downward and as a trader you should also adjust your strategy accordingly to fit the current downwards trends of the stock market index which you're trading.

Contracts & Details

Margin Requirement Per 1 Lot/Contract - € 40

Value per 1 Pip(Point) - € 0.1

NB: Even though general trend is in general moves upwards, as a stock indices trader you've got to factor in daily market volatility, on some days the index might move in a range or even pull-back, retracement may also be significant some times and hence you as the trader you need to time your entry precisely using this trading strategy: trade strategy & at the same time use the proper & suitable money management methods and guidelines in case there's unexpected market trend volatility. About equity management guidelines & principles in stock index lessons: What's equity management & money management techniques.

More Guides and Courses: