CAC 40 Index

The CAC40 Index is a France Stock Market Index that tracks the performance of the top 40 largest stocks in the Euronext Paris Bourse. This index tracks the capitalization of the top 40 stocks included.

The CAC40 Index Chart

The CAC40 Index chart is displayed above. On the exemplification put on display above this Index is referred to as as FRA40CASH . As a forex trader you want to find a broker that provides this The CAC40 Index chart so that you as a trader can start to trade it. The example above is of CAC40 Index on the MT4 FX and Stock Indices Trading Platform .

Other Info about CAC 40 Index

Official Symbol - CAC:IND

The 40 component stocks which make up the CAC40 Index are picked from the top companies in France. The Index calculation is reviewed quarterly.

Strategy for Trading CAC-40 Index

The CAC40 Index tracks the capitalization of the top 40 companies in France. This index generally moves up over the long-term because --FrenchFrancethe--France economy also displays robust growth.

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

Contracts & Specifications

Margin Required Per 1 Lot - € 40

Value per 1 Pip(Point) - € 0.1

Note: Even though the general and overall trend is in general upwards, as a fx trader you have got to factor in the daily market volatility, on some days the stock may oscillate or even retrace, the retracement might also be substantial sometimes & therefore as a currency trader you need to time your trade entry precisely using this strategy: Stock indices trading strategy & at the same time use the proper & suitable money management strategies & guidelines just in case of more unexpected price volatility in the price trend. About equity management methods & guidelines lessons: What's money management and money management methods.

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