Trade Forex Trading

The EUROSTOXX 50 Index

The EURO STOXX 50 Index represents the trend movement of the top 50 Blue Chip Stocks in Euro Zone. These stocks are picked from the most lucrative sectors of the Euro Zone economy. The Top 50 Stocks are also chosen from a variety of EU Zone countries. These 50 stocks are the most liquid stocks in the Euro Zone. The countries Include are 12 in total and these are:

  1. Germany
  2. France
  3. Netherlands
  4. Portugal
  5. Spain
  6. Belgium
  7. Finland
  8. Italy
  9. Austria
  10. Greece
  11. Ireland
  12. Luxembourg

The EUROSTOXX 50 Index is represented on a chart as a Financial Trading Instrument just like the currencies and stocks, and this Index chart can be transacted just like currency charts.

The EUROSTOXX 50 Index chart movement can be analyzed using technical analysis & other indicators can be placed on this Index Chart.

The EURO STOXX 50 Index Chart

The EUROSTOXX 50 Index chart is illustrated and shown below. On the illustration laid-out below this financial trading instrument is referred to as EU50CASH . As a forex trader you want to find a broker that provides this The EUROSTOXX 50 Index chart so that you as a trader can start to trade it. The example illustration put on display below is of EURO STOXX Index on the MetaTrader 4 FX & Stock Indices Trading Platform .

Trading the EURO STOXX 50 Index Chart - The EUROSTOXX 50 Index - Forex Trading the EURO STOXX 50 Index Chart

Just currencies a trader can use their own strategy or trading system to trade these indices the same way which they trade currencies. Traders can even use their EAs to trade these Indices.

Other Data about EURO STOXX 50 Index

Market Time - 0900 - 1800 Central Eastern Time

Official Symbol - SX5E or SX5E

The 50 component stocks which make up the EUROSTOXX 50 Index are revised once every year to identify if to change this composition or not.

Strategy for Trading EUROSTOXX50 Index

The EUROSTOXX 50 Index is comprised of blue chip stocks picked from the best performing sectors in the Euro Zone: therefore a good strategy to trade the EUROSTOXX 50 Index is to trade long most of the time. This is because in general the best stocks in Europe will in general keep moving up and up because the corporations behind these stocks are the best and most lucrative firms in Europe.

The EURO STOXX 50 Index is also revised every year so that as if one stock is not performing well then it's replaced with another stock that's performing well. This ensures that most times the EUROSTOXX 50 Index will keep going up.

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

Contracts and 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 forex trader you have got to factor in the daily price volatility, on some days the stocks might oscillate or even retrace, the retracement may also be substantial some times and hence as a forex trader you need to time your trade entry accurately using this strategy: Indices strategy and at the same time use proper and appropriate money management guidelines and strategies in case there's unexpected price volatility in the price trend. About money management principles lessons: What's equity management and money management methods.

Study More Topics and Tutorials:

Forex Malaysia Seminar

Forex Thailand Seminar

Forex Broker