The EURO STOXX 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 profitable sectors of the Euro Zone economy. The Top 50 Stocks are also picked from a variety of Euro Zone countries. These 50 stocks are the most liquid stocks in the Euro Zone. The countries Include are 12 in total and these are:
- Germany
- France
- Netherlands
- Portugal
- Spain
- Belgium
- Finland
- Italy
- Austria
- Greece
- Ireland
- Luxembourg
The EURO STOXX 50 Index is represented on a chart as a Financial Instrument just like currencies and stocks, and this Index chart can be traded just like currency charts.
The EURO STOXX 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 EURO STOXX 50 Index chart is shown below. On the example below this financial instrument is named as EU50CASH . As a trader you want to find a broker that provides this The EURO STOXX 50 Index chart so that you can start to trade it. The example below is of EURO STOXX Index on the MT4 Forex & Indices Trading Platform .
Just currencies a trader can use their own strategy or trading system to trade these stock indices the same way that they trade currencies. Traders can even use their EAs to trade these Indices.
Other Information about EURO STOXX 50 Index
Market Time - 0900 - 1800 Central Eastern Time
Official Symbol - SX5E or SX5E:IND
The 50 component stocks that make up the EURO STOXX 50 Index are revised once every year to determine if to change this composition or not.
Strategy for Trading EURO STOXX 50 Index
The EURO STOXX 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 EURO STOXX 50 Index 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 companies behind these stocks are the best and most profitable companies in Europe.
The EURO STOXX 50 Index is also revised every year so that if one stock is not doing well then it is replaced with another stock that is doing good. This ensures that most of the times the EURO STOXX 50 Index will keep going up.
As a trader you want to be biased & keep buying as the index moves up. When the European economies are doing well this upward trend is more likely to be ruling. A good strategy would be to buy the dips.
Contracts and Specifications
Margin Required Per 1 Lot - € 40
Value per 1 Pip - € 0.1
Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stocks might oscillate or even retrace, the retracement may also be significant at times & hence as a trader you need to time your entry precisely using this strategy: Stock indices strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About money management principles lessons: What is equity management and money management methods.
