CAC40 Index

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

CAC40 Index Trading 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 can begin to trade it. The example That is shown above is that of CAC40 Stock Indices on MT4 FX Trading Platform.

Other Information about CAC40 Index

Official Stock Indices Symbol - CAC:IND

The 40 component stocks that makes up the CAC40 Index are selected from top companies in France. The calculation is revised 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 French economy also shows strong 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 to move up & hence this index will also move in an upward trend. A good stock 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 & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.

Contracts and Specs

Margin Requirement Per Lot - € 40

Value per Pips - € 0.1

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