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 Index is represented on a chart as a Financial Instrument just like currencies & stocks, & this trade chart can be traded just like forex charts.
EUROSTOXX 50 Stock Index chart movement can be analyzed using technical analysis & other indicators can be placed on this Chart.
EUROSTOXX 50 Stock Index Chart
EUROSTOXX 50 Stock Index chart is shown and illustrated 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 chart so that you can begin to trade it. The example That is shown below is that of EURO STOXX Index on the MT4 FX Trading Platform.
Just as currencies trading, a trader can use their own strategy or trading system to trade these Stock Index 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 Stock Indices Symbol - SX 5E or SX 5E:IND
The 50 component stocks that makes up the EUROSTOXX 50 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 and 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 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 & Recession
During economic slowdown & 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 the Stock Indices tracking these specified stocks also will begin to move downwards.
Therefore, during these times, trends are likely to be heading downward & you as a trader should also adjust your trade strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.
Contracts and Specs
Margin Required Per One Lot - € 40
Value per Pips - € 0.1
NB: Even though general trend is generally moves upward, as a trader you have to consider and factor in the daily market volatility, on some of the days the Stock Index might move in a range or even retrace & 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 strategies in stock indices lessons: What's Stock iindices money management and equity management strategies.
