IBEX 35 Index
The IBEX35 is an Index that tracks the top 35 stocks in the Bolsa de Madrid - Spanish Stock Market Exchange. This index tracks the capitalization of the 35 most traded stocks in the Madrid Stock Exchange Market. The component/constituent stocks used to calculate this index are revised twice a year.
The IBEX35 Index Chart
The IBEX35 Index chart is displayed above. On the exemplification put on display above this Index is referred to as as SPAIN35CASH. As a forex trader you want to find a broker that provides this The IBEX35 Index chart so that you as a trader can start to trade it. The example above is of IBEX35 Index on the MetaTrader 4 FX and Indices Platform.
Other Info about IBEX 35 Index
Official Symbol - IBEX:IND
The 35 constituent/component stocks that make up the IBEX35 Index are picked from the top companies in Spain. The 35 stocks make up most of the turnover volume in the Madrid Stock Exchange Market.
Strategy for Trading IBEX35 Index
The IBEX35 Index tracks the capitalization of the top 35 companies in Spain. This index generally moves up over the long term but it is more volatile in its trend movements. When compared to other indices like EURO STOXX & DAX30 indices which have lower volatility in their trend movements, this index has wider and more volatile swings in its trend movements.
Over a long period of time this index will in general move upwards, as a trader you want to be biased & keep buying as the stock index heads and moves upward.
A good strategy would be for traders to keep buying the dips - although as a fx trader wanting to trade this index, be prepared for generally much wider swings(more volatile swings) when it comes to trading this index.
Contracts and Specifications
Margin Required Per 1 Lot - € 140
Value per 1 Pip(Point) - € 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 market volatility, on some days the stock might oscillate or even retrace, the retracement might also be substantial sometimes and hence as a forex trader you need to time your trade entry precisely using this strategy: Indices strategy and at the same time use proper/appropriate money management guidelines/principles in case there is more unexpected volatility in the market trend. About equity money management rules lessons: What's money management and money management methods.
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