IBEX35 Index
The IBEX35 is an Stock Index that keeps track of top 35 stocks in Bolsa de Madrid - Spanish Market Exchange. This Index tracks capitalization of 35 most liquid stocks in Madrid Stock Market. The constituent stocks used to calculate this stock index are re-evaluated twice a year.
The IBEX35 Chart
The IBEX35 trade chart is displayed & shown above. On above example this Index is named SPAIN 35CASH. As a trader you want to find a broker that provides IBEX35 trade chart so that you can start to trade it. Example displayed above is of IBEX35 Stock Index on MT4 FX TradeTrading Platform.
Other Details about IBEX35 Stock Indices
Official Stock Indices Symbol - IBEX:IND
The 35 components stocks which constitute IBEX35 Stock Indices are chosen from the best performing corporations in Spain. The 35 stocks constitute majority of the turnover volume in the Madrid Stock Market.
Trade System for Trading IBEX35 Index
The IBEX35 Index tracks capitalization of top 35 companies in Spain. This Stock Index generally moves upward over long term but it is more volatile in its trend movements. When compared to other Stock Indices such as EURO STOXX & DAX30 which have lower volatility in their trend movements, this stock index has wider swings in its trend movements.
Over a long period of time this index will generally move upwards, as a trader you want to be biased and keep buying as the index moves upwards.
A good stock indices trade strategy would be to buy the dips - although as a trader wanting to trade this index, be prepared for generally much wider swings when it comes to trading this stock index.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies begin to report lower profits & lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits & therefore Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards & 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 - € 140
Value per Pip - € 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 market retracement move might also be a significant one at times & hence as a trader you need to time your entry precisely when using this trading strategy: strategy & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About stock index money management rules courses: What is money management & equity management strategies.
