CAC40 Index

CAC40 Index is a France Market Index which keeps track of the performance of the top 40 largest stocks in Euronext Paris Bourse. This Stock Index tracks capitalization of top 40 stocks included.

Cac 40 List - What is Cac 40?

CAC40 Index Trade Chart

CAC40 Index chart is shown and illustrated above. On the above example this Index is named FRA 40CASH. As a trader you want to find a broker that provides CAC40 Index chart so that you as a trader can begin to trade it. The example That is illustrated above is that of CAC40 Index on MT4 FX Platform.

Other Information about CAC40 Index

Official Stock Index Symbol - CAC:IND

The 40 component stocks that makes up the CAC40 Index are selected from top companies in France. The calculation is reviewed quarterly.

Strategy to Trading CAC40 Index

CAC40 Index tracks capitalization of top 40 firms in France. This Stock Index in general moves upward over long-term because the French economy also shows robust growth.

As a trader you want to be biased & keep buying as the index moves upward. When French economy is doing well most of these top stocks will continue moving up & hence this index will also move in an upwards trend. A good stock index trade strategy would be to keep buying and buy the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, corporations begin to report lower profits and lower growth prospect. It is due to and because of this reason that investors begin to sell stocks of companies that are reporting & recording lower profits and hence Index tracking these given stocks also will start to go and move downwards.

Therefore, during these times, trends are much more likely to be heading downwards & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you as a trader are trading.

Contracts and Specs

Margin Requirement Per 1 Lot - € 40

Value per Pips - € 0.1

Note: Even though general and overall trend is in general moves upwards, as a trader you have to consider and factor in daily market price volatility, on some of the days the Index may move in a range or even retrace and retracement, the market retracement/correction move may also be a significant one at times and hence as a trader you need to time your entry strictly using this trade strategy: Stock strategy & at same the time use proper and appropriate money management guidelines & strategies just in case there's more unexpected market volatility. About equity money management methods & techniques in indices tutorials: What's Stock equity management & Stock Index equity management system.

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