EUROSTOXX 50 Stock Index
EUROSTOXX 50 Stock Index represents the trend movement of the top 50 Blue Chip Stocks in EuroZone. These stocks are selected from the most profitable sectors of EuroZone economy. The Top 50 Stocks are also selected from a variety of EuroZone countries. These 50 stocks are the most liquid stocks in the EuroZone. The countries Included are 12 in total and these are:
- Germany
- France
- Netherlands
- Portugal
- Spain
- Belgium
- Finland
- Italy
- Austria
- Greece
- Ireland
- Luxembourg
EUROSTOXX 50 Stock Index is represented on a chart as a Financial Instrument just like currencies & stocks, and this trade chart can be traded just like forex currency charts.
EUROSTOXX 50 Stock Index trade chart movement can be analyzed using technical analysis & other indicators can be placed on this Trade Chart.
EUROSTOXX 50 Stock Index Trade Chart
EUROSTOXX 50 Stock Index trade chart is shown and shown below. On the example below this financial instrument is named EU 50CASH. As a trader you want to find a broker that provides EUROSTOXX 50 Stock Index trade chart so that you can begin to trade it. The example That is shown below is that of EURO STOXX Stock Index on the MT4 FX Platform.
Just as currencies trading, a trader can use their own strategy or trading system to trade these Stock Indices the same way that they trade currencies. Traders can even use their Expert Advisors to trade these Indices.
Other Information about EUROSTOXX 50 Stock Index
Market Time - 0900 - 1800 Central Estern Time
Official Indices Symbol - SX 5E or SX 5E:IND
The 50 component stocks that makes up the EUROSTOXX 50 Stock Index are revised once every year to determine if to make changes to this composition or not.
Strategy for Trading EUROSTOXX 50 Stock Index
EUROSTOXX 50 Stock Index is made up of blue chip stocks choosen from best performing sectors in the EuroZone: hence a good stock index trade strategy to trade EUROSTOXX 50 Stock Index is to trade long most times. This is because generally the best stocks in Europe will generally keep heading up & up because the companies behind these stocks are the best & most lucrative companies in Europe.
EUROSTOXX 50 Stock Index is also revised yearly so that if one Stock Indices is not doing well then it's replaced with another Indices that is doing good. This ensures that most of the times EUROSTOXX 50 Stock Index will keep going up.
As a trader you want to be biased and keep buying as the stock index moves upward. When the European economies are doing well this upward trend is more than likely to be ruling. A good stock index trade strategy would be to buy the dips.
During Economic SlowDown and Recession
During economic slowdown and recession times, firms begin to report lower profits & lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits & hence the Stock Indices tracking these specified stocks will also begin to move downwards.
Therefore, during these times trends are likely to be heading downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you are trading.
Contracts & Specs
Margin Required Per One Lot - € 40
Value per Pips - € 0.1
NB: Even though general trend is generally upward, as a trader you have to consider & factor in the daily market volatility, on some of the days the Stock Indices might move in a range or even retrace and pullback, market retracement move might also be a significant one at times & hence as a trader you need to time your trade entry precisely when using this trade strategy: Stock Index trading strategy & at same the time use proper money management guidelines just in case there is more unexpected volatility in the market. About money management methods in indices topics: What's Stock indices money management & equity management methods.
