FTSE MIB 40 Stock Index
The FTSE MIB index tracks the top 40 most traded stocks in Borsa Italiana - The Italian Stock Exchange Market. This index also is referred to as the Italian 40 Index. The 40 stocks included in this index are picked from the most liquid stocks from the most lucrative industries in the Italian economy.
The FTSE MIB 40 Index Chart
The FTSE MIB 40 Index chart is shown above. On the example above this trading instrument is named as IT40CASH . As a forex trader you want to find a broker that provides this The FTSE MIB 40 Index chart so that you can start to trade it. The example above is of FTSE MIB 40 Index on the MT4 Forex & Indices Software .
Other Information about FTSE MIB 40 Index
Official Symbol - FTSEMIB:IND
The 40 component stocks that make up the FTSE MIB 40 Index are picked from the top Italian companies that are most profitable. These stocks are also picked from the most lucrative industries in the Italian economy.
Strategy for Trading FTSEMIB 40 Index
The FTSE MIB 40 index generally moves up over the long term because the stocks picked represent the best sectors in the Italian economy therefore in general this index will keep moving up over time - because these economic sectors will be doing good business.
As a forex trader wanting to trade this index, you want to be more biased towards the upward trend direction of this index.
As a trader you want to keep buying as the index moves up. When the Italian economy is doing well (most of the times it's doing well) this upward trend is more likely to be ruling. A good trade strategy would be to buy the dips.
Contracts & Specifications
Margin Required Per 1 Lot - € 250
Value per 1 Pip - € 1
Note the pip value of the IT40CASH is € 1 compared to the value of other indices such as Germany DAX and EURO STOXX whose value of 1 pip per lot is € 0.1 - However, the average pip movement for this index is much lower as compared to other indices such as DAX 30 and EURO STOXX.
Note: Even though the general trend is generally upwards, as a forex trader you have to factor in the daily market volatility, on some days the stocks may oscillate or even retrace, the retracement might also be significant at times and hence as a fx trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected price volatility in the price trend. About equity management rules topics: What is money management and equity management methods.
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