SMI 20 Index

The SMI 20 Index or Swiss Market Index 20 is a stock market index that tracks the top 20 companies in Six Swiss Exchange in Switzerland. This 20 stocks listed represent the blue chip stocks in the 6 Swiss Exchange Market - these are also the most liquid stocks in this stock exchange.

The SMI 20 Index Chart

The SMI20 Index chart is shown above. On example put on display above this Index is named as SWI20CASH . As a forex trader you want to find a broker that provides this The SMI 20 Index chart so that you as a trader can start to trade it. The example above is of SMI20 Index on the MT4 FX & Stock Index Trading Platform .

Other Data about SMI 20 Index

Official Symbol - SMI:IND

The 20 component stocks that make up the SMI 20 Index are picked from the top companies in France. The 20 stocks make up most of the turnover volume in the SIX Swiss Exchange Market. The Index calculation is reviewed yearly.

Strategy for Trading SMI20 Index

The SMI20 Index tracks the capitalization of the top 20 companies in Switzerland. This index generally moves up over the long term because the Swiss economy also shows strong and robust growth. The Swiss also has one of the strongest banking system in the world - making the Swiss one of the most reliable economy.

As a index trader you want to be more biased and keep buying as the stock index moves and heads upwards. When the Swiss economy is doing well most of these top stocks will continue to move up & thence this index will also move in an upwards trend. A good trading strategy would be for a trader to keep buying and buy the dips.

Contracts and Specifications

Margin Required Per 1 Lot - CHF 100

Value per 1 Pip(Point) - CHF 0.5

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 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 & at the same time use proper and suitable money management techniques & guidelines in case there is unexpected price market trend volatility. About money management rules topics: What's money management and money management methods.

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