IBEX35 Index
The IBEX35 is an Stock Index which keeps track of the top 35 stocks in Bolsa Madrid - Spanish Stock Bourse. 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 IBEX 35 Chart
The IBEX35 trade chart is displayed & shown above. On above example this Index is named SPAIN35CASH. As a trader you want to find a broker that provides IBEX35 trade chart so that you as a trader can start to trade it. Example displayed and illustrated above is of IBEX35 Index on MT4 Forex Platform.
Other Details about IBEX35 Indices
Official Indices Symbol - IBEX:IND
The 35 components stocks which constitute IBEX35 Indices are chosen from the best performing corporations in Spain. The 35 stocks constitute the majority of turnover volume in Madrid Bourse.
Trading System for Trading IBEX35 Index
The IBEX35 Index tracks capitalization of top 35 companies in Spain. This Stock Index in general moves upward over long term but it is more volatile in its trend movement. When compared to other Stock Indices like EURO STOXX & DAX30 which have lower volatility in their market trend movements, this stock index has wider swings in its trend movement.
Over a long period of time this stock index will in general move upward, as a trader you want to be biased and keep on buying as the index heads & moves upwards.
A good stock index strategy would be to buy the dips - although as a trader wanting to trade this stock index, be prepared for generally much wider swings(more volatile swings) when it comes to this stock index.
During Economic Slow-Down & Recession
During the economic slowdown recession times, corporations begin reporting lower earnings, lower profits and slower growth projections. It is due to this reason that investors begin to sell stocks of companies which are reporting & recording lower profits & therefore Indices tracking these particular specifed stocks also will begin to head downward.
Hence, during these times, trends are much more likely to be moving downward & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the index which you as a trader are trading.
Contract Specifications
Margin Requirement for 1 Lot - € 140
Value per Pip - € 1
Note: Even though general and overall trend is generally move upwards, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices might move in a range or even retrace & retracement, the market retracement move might also be a substantial one at times & hence as a trader you need to time your trade entry strictly when using this strategy: strategy & at the same time use the suitable/proper money management guidelines and principles just in case of unexpected market volatility. About stock index money management guidelines and strategies courses: What is money management guidelines and principles & equity management strategies.
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