AEX25 INDEX - Amsterdam Bourse Stock Index
The AEX Index is a market stock indices used to track performance of top 25 stocks on NYSE Euronext Amsterdam Bourse in Netherlands. The NYSE Euronext Amsterdam Bourse was formally known as Amsterdam Stocks Market.
The 25 companies used to calculate this stock index are reviewed quarterly every year. This Stock Index tracks on the capitalization of top 25 companies.
AEX25 Chart
The AEX25 chart is displayed & shown above. On above example this Index is named NETH 25CASH. As a trader you want to find a broker that provides AEX25 chart so that you can begin to trade it. Example displayed above is of AEX25 Indices on MT4 FX Trading Platform.
Other Details about AEX25 Stock Index
Official Symbol - AEX:IND
The 25 components stocks which constitute AEX25 Index are chosen from the best performing corporations in Netherlands. The 25 stocks make up the majority of turnover volume in NYSE Euronext Amsterdam Stocks Market. The calculation is re-evaluated quarterly every year.
Strategy for Trading AEX25 Index
The AEX25 Stock Index tracks capitalization of top 25 companies in Netherlands. This Index generally moves upwards over long term because Netherlands economy also shows strong economic growth.
As a trader you want to be biased & keep buying as the stock index moves upwards. When Dutch economy is performing good most of these top 25 stocks will continue moving up & therefore this stock index also will move in an upwards trend. A good indices trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that investors start to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are likely to be moving downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you're trading.
Contracts and Specifications
Margin Requirement Per Lot - € 5
Value per Pip - € 0.1
Note: Even though general trend is generally move upward, as a trader you've got to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the Stock Indices market retracement move may also be a significant one at times & hence as a trader you need to time your entry precisely when using this trading strategy and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About equity money management methods in indices lessons: What is index equity management and Indices equity management strategies.
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