SX 5E Index

SX 5E Index represents trend movement of the top 50 Blue Chips Stocks in Euro-Zone. These stocks are chosen from the most profitable economic sectors of the Euro-Zone economy. These Top 50 Stocks are picked from a variety of Euro-Zone countries. These are the 50 most traded and liquid stocks in 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 5E Index is represented on a chart as a Financial Instrument just like the forex currencies & stocks, and this Index chart can be traded just like forex charts.

SX 5E chart movement can be analyzed using technical analysis and other indicators can be placed on this Trading Chart.

SX 5E Chart

SX 5E chart is illustrated and displayed and portrayed below. On example laid-out below this financial instrument is referred to as as SX5ECASH. As a trader you want to find a broker that provides SX 5E chart so that as you as a trader can begin to trade it. The example Which is displayed below is that of SX 5E Index on MT4 Forex & Index Platform.

Trading the SX 5E Index Trading Chart - SX5E Index

Just as currencies, a stock indices 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/EAs to trade these Stock Index.

Other Info about SX 5E Index

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

Index Symbol - SX5E or SX5E:IND

The 50 constituent stocks which make up the SX5E Index are reviewed once each year to figure out if to change the composition or not.

Strategy to Trading SX5E Index

SX 5E Index is comprised of blue chip stocks choosen from best performing sectors in the Euro-Zone: hence a good index trade strategy to trade SX5E Index is to trade long most times. This is because in general the best stocks in Europe will in general keep moving up & up because the firms behind these stocks are the best and most profitable firms in Europe.

SX 5E Index is also reviewed each year so that as if one stock isn't doing well then it's replaced with an alternative stock that's doing good. This ensures that most of the time SX5E Index will keep moving upward.

As a trader you want to be biased and keep buying as the index moves upwards. When European economies are doing well this upward 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 growth prospects. It is because of 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 market times, the market trends are likely to be moving downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.

Contracts & Details

Margin Requirement Per 1 Lot - € 40

Value per 1 Pip(Point) - € 0.1

NB: Even though general trend is in general move upwards, as a stock index trader you've got to factor in daily market volatility, on some days the stock index may move in a range or even pull-back, market pullbackretracement may also be significant some times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock Index trade strategy and at the same time use proper money management guidelines just in case of more unexpected volatility in the market trend. About money management guidelines in index topics: What's money management & money management methods.

Learn More Topics & Tutorials: