AEX25 INDEX - Amsterdam Bourse Stock Index
The AEX Index is a market 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 re-evaluated quarterly every year. This Stock Index tracks on the capitalization of top 25 companies.
The AEX25 Trading Chart
The AEX25 chart is displayed & displayed above. On above example this Stock Index is named NETH 25CASH. As a trader you want to find a broker that provides AEX25 chart so that you can start to trade it. Example displayed above is of AEX25 Stock Indices on MT4 Forex Trading Software.
Other Details about AEX25 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 constitute majority of the turnover volume in the NYSE Euronext Amsterdam Stocks Market. The calculation is re-evaluated quarterly every year.
Strategy for Trading AEX25 Index
The AEX25 Index tracks capitalization of top 25 companies in Netherlands. This Stock Index generally upward over long term because Netherlands economy also shows strong economic growth.
As a trader you want to be biased and keep buying as the index moves upwards. When Dutch economy is performing good most of these top 25 stocks will continue moving up and therefore this stock index will also 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 begin to move downward.
Hence, during these times 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 are trading.
Contracts and Specifications
Margin Requirement Per Lot - € 5
Value per Pip - € 0.1
Note: Even though general trend is generally upward, as a trader you've got to consider and factor in daily market volatility, on some of the days the Indices may move in a range or even retrace & pull-back, the Indices market retracement move may also be a significant one at times and therefore as a trader you need to time your entry precisely when using this strategy and at same time use proper equity management guidelines just in case there's more unexpected volatility in the market movement. About money management methods in stock indices topics: What is index equity management & Indices equity management methods.
