EUROSTOXX 50 Index

EUROSTOXX 50 Index represents the trend movement of the top 50 Blue Chip Stocks in EuroZone. These stocks are picked from the most profitable economic sectors of Euro Zone economy. The Top 50 Stocks are also selected from a variety of Euro Zone countries. These 50 shares are the most traded stocks in the EuroZone. The countries Included are 12 in total & these are:

Germany
France
Netherlands
Portugal
Spain
Belgium
Finland
Italy
Austria
Greece
Ireland
Luxembourg

The EUROSTOXX 50 Index is shown on a chart as a Financial Instrument just like currencies and stocks, and you can trade this chart like you trade fx charts.

EUROSTOXX 50 Index chart movement can be interpreted using technical analysis and other indicators which can be placed and added on this chart.

EUROSTOXX 50 Stock Index Chart

The EUROSTOXX 50 Index chart is displayed below. In the example provided, this trading instrument is referred to as EU 50CASH. It is essential to find a broker that offers the EURO STOXX 50 Index chart to commence trading. The example illustrated below pertains to the EURO STOXX Index on the MT4 FX Trade Platform.

EUROSTOXX 50 Index - How to Trade EUROSTOXX 50 Index

Just as currencies trading, a stock indices trader can use their own strategy or trading system to trade these Index the same way that they trade fx currencies. Traders can even use their Expert Advisors(EAs) to trade these Indices.

Other Data about EUROSTOXX 50 Index

Market Hours - 0900 to 1800 Central European Timezone

Official Indices Symbol - SX 5E or SX5E:IND

The 50 stocks that make up the EUROSTOXX 50 Index get reviewed every year to see if any changes need to be made.

Strategy for Trading/Transacting EUROSTOXX 50 Index

EUROSTOXX 50 Stock Index is made of top-quality stocks picked from the best areas in the EuroZone: so, a good stock index trading plan to trade EUROSTOXX 50 Index is to mostly trade long. This is because usually the best shares in Europe will generally keep going up & up because the companies behind these stocks are among the best and most profitable companies in Europe.

The EUROSTOXX 50 Index undergoes an annual review, allowing for the substitution of any underperforming index with one exhibiting better results. This mechanism largely ensures the EUROSTOXX 50 Index maintains its upward momentum.

As a trader focused on indices, your inclination should be to maintain a buying bias while the index sustains an upward movement. When European economies are robust and performing well, this upward trajectory is highly probable. A sound index trading approach involves purchasing during minor pullbacks.

During Economic SlowDown & Recession

During economic slow-down & recession times, corporations start to report slower profits & lowers growth projections. It's because of this reason that investors begin to sell shares of corporations which are reporting lower profits & hence the Index tracking these particular given stocks also will begin to move downward.

In these market hours, trends often go down. Adjust your strategy to match. Focus on the downward moves in the index you trade.

Contracts & Specs

Margin Required for 1 Lot - € 40

Value per Pips - € 0.1

NB: Even though general and overall trend is generally moves upwards, as a trader you've got to consider and factor in the daily market volatility, on some of the days the Index may move in a range or even retrace and pull back, market pullback/retracement move might also be a significant one at times & therefore as the trader you need to time your entry precisely when using this strategy: Index strategy & at same the time use proper and appropriate money management guidelines and principles just in case of more unexpected volatility in the market. About money management trading strategies in indices learning lessons: What's Stock money management principles and guidelines and equity management system.

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