FTSEMIB40 Stock Index
FTSE MIB index tracks top 40 most liquid stocks in Borsa Italiana - Italian Stocks Exchange Market. This Stock Index is also referred to as the Italian 40 Index. The 40 stocks included in this stock index are selected from most liquid stocks from the most profitable industries in the Italian economy.
FTSEMIB40 Chart
FTSEMIB40 Stock Indices trade chart is shown and illustrated above. On the above example this instrument is named IT 40CASH. As a trader you want to find a broker that provides FTSEMIB40 Stock Indices trade chart so that you can begin to trade it. The example That is illustrated above is that of FTSEMIB40 Stock Indices on MetaTrader 4 Forex Software.
Other Information about FTSEMIB40 Stock Indices
Official Indices Symbol - FTSEMIB:IND
The 40 component stocks that makes up the FTSEMIB40 Stock Indices are selected from top Italian companies that are most lucrative. These stocks are also selected from the most profitable industries in the Italian economy.
Stock Indices Trade System for Trading FTSEMIB40 Index
FTSEMIB40 index in general moves upward over long-term because stocks choosen represent best sectors in Italian economy hence in general this stock index will keep heading up over time - because these sectors will be doing good business.
As a trader wanting to trade this stock index, you want to be more biased toward upward trend direction of this stock index.
As a trader you want to keep buying as the stock index moves upward. When Italian economy is doing well (most times it is doing well) this upwards trend is more than likely to be ruling. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits and hence Stock Indices tracking these specified stocks also will begin to move downward.
Therefore, during these times, trends are likely to be moving downwards and you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contract Specifications
Margin Requirement Per Lot - € 250
Value per Pips - € 1
Note pips size of IT 40CASH is € 1 compared to the value of other Stock Indices such as Germany DAX and EURO STOXX whose value of 1 pip per lot is € 0.1 - However, the average pips movement for this stock index is much lower as compared to other Indices such as DAX30 & EURO STOXX.
Note: Even though general trend is generally move upwards, as a trader you have to consider & factor in daily market volatility, on some of the days the Indices might move in a range or even retrace & pull-back, the market retracement move might also be a substantial one at times & therefore as a trader you need to mark-time your trade entry precisely using this trade strategy & at same the time use proper equity money management guidelines just in case there is more unexpected volatility in the market. About indices equity management rules courses: What's equity money management & money management methods.
