FTSE MIB 40 Index
The FTSEMIB 40 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 displayed above. On the illustration put on display above this trading instrument is named as IT40CASH . As a forex trader you want to find a broker that provides this The FTSEMIB 40 Index chart so that you as a trader can start to trade it. The example above is of FTSE MIB 40 Index on the MetaTrader 4 FX & Indices Software Platform .
Other Data about FTSEMIB 40 Index
Official Symbol - FTSEMIB:IND
The 40 component stocks which 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 FTSEMIB 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 trading strategy would be for a trader to buy the dips.
Contracts and Specifications
Margin Required Per 1 Lot - € 250
Value per 1 Pip(Point) - € 1
Note the pip value of the IT40CASH is € 1 compared & analyzed to the value of the other indices such as Germany DAX and EUROSTOXX 50 whose size of 1 pip per lot is € 0.1 - However, the average pip movement for this index is much lower as compared to other indices like DAX 30 and EURO STOXX.
Note: Even though the 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 may oscillate or even retrace, the retracement might also be substantial some times and hence as a currency trader you need to time your trade entry accurately using this strategy: Indices strategy and at the same time use the suitable/proper money management guidelines & principles in case there is unexpected price volatility in the price trend. About equity management guidelines & methods topics: What's money management and equity management methods.
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