Trade Forex Trading

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/shares listed represent the blue chip shares in the 6 Swiss Stock Exchange Market - these also are the most liquid stocks/shares in this stock exchange.

SMI 20 Index - Strategy for Trading SMI20 Index - Strategy for FX Trading SMI20 Index

The SMI 20 Index Chart

The SMI20 Index chart appears above. The example shown with this index is called SWI20CASH. As a forex trader, you need to find a broker that offers the SMI20 Index chart. This lets you start trading it. The example comes from the SMI20 Index on the MT4 FX and Stock Index Trading Platform.

Other Data about SMI 20 Index

Official Symbol - SMI:IND

The 20 component stocks of the SMI 20 Index represent leading companies in Switzerland. These shares account for a significant portion of the trading volume on the SIX Swiss Exchange, with the index reviewed annually.

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 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/Contract - CHF 100

How Much per 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 shares may oscillate or even retrace, the retracement may 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 lessons: What's money management and money management techniques.

Get More Courses & Tutorials at:

Forex Broker