AEX25 INDEX - Amsterdam Bourse Index
The AEX Index is a market indices used to keep track of the performance of the 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 index are reviewed quarterly every year. This Index tracks on the capitalization of top 25 companies.
AEX 25 Chart
The AEX25 chart is displayed and shown & shown above. On above example this Index is named NETH25CASH. As a trader you want to find a broker that provides AEX25 chart so that you as a trader can begin to trade it. Example displayed and illustrated above is of AEX25 Indices on MT4 FX Platform.
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 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 Index tracks capitalization of top 25 companies in Netherlands. This Index in general moves upwards over long-term because Netherlands economy also shows strong and stellar economic growth.
As a trader you want to be biased & keep buying as the stock index moves upwards. When Dutch economy is performing and doing good most of these top 25 stocks will continue going upward and therefore this stock index also will move in an upwards trend. A good index strategy would be to buy the price 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 posting and recording lower profits and therefore Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are a lot more 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 which you're trading.
Contracts and Specifications
Margin Requirement for 1 Lot - € 5
Value per Pip - € 0.1
Note: Even though overall trend is in general move upward, as a trader you've got to consider and factor in daily price volatility, on some of the days the Indices might move in a range or even retrace and retracement, the Indices market pullback/retracement move may also be a large one at times & hence you as a trader you need to time your entry accurately when using this trading strategy & at same time use the suitable and appropriate and appropriate/proper money management rules & guidelines just in case there is unexpected volatility in the market movement. About money management techniques in indices lessons: What is index equity management & Stock Index equity management methods.
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