FTSEMIB40 Index

FTSE MIB 40 index tracks top 40 most traded stocks in the Borsa Italiana - Italian Stocks Market. This Index is also referred to as the Italian 40 Index. The 40 stocks included in this index are picked from the most traded stocks from the most profitable industries in the Italian economy.

Strategies for Trading/Transacting FTSE MIB 40 Stock Index - What is FTSEMIB40?

The FTSE MIB 40 Stock Index Trade Chart

FTSEMIB40 Index trading chart is shown and displayed above. On the above illustration this financial instrument is named IT 40CASH. As a trader you want to find a broker that provides FTSE MIB 40 Stock Index chart so that as you can begin to trade it. The example Which is shown above is that one of FTSEMIB 40 Stock Index on the MT4 Forex Software Platform.

Other Info about FTSE MIB 40 Index

Official Index Symbol - FTSE MIB:IND

The 40 component stocks that make up FTSE MIB 40 Stock Index are picked from the top Italian firms that are most lucrative. These stocks are also picked from most lucrative industries within Italian economy.

Strategy to Trading FTSE MIB 40 Index

FTSE MIB 40 index in general moves upwards over longterm because the stocks choosen represent best sectors in the Italian economy hence in general this index will keep heading up over time - because these sectors will be doing good business.

As a trader wanting to trade this Index, you want to be more biased towards upward trend direction of this Stock Index.

As a trader you want to keep on buying as the index heads and moves upward. When the Italian economy is performing well (majority of the times it's performing good) this upwards market trend is more than likely to be in place. A good index trading strategy would be to buy dips.

During Economic SlowDown and Recession

During economic slow-down & recession times, firms begin to report slower profits & slower growth projections. It's due to and because of this reason that traders start to sell stocks of corporations that are announcing and recording lower profits and hence the Index tracking these specified stocks will also begin to move downward.

Hence, during these times, market trends are a lot more likely to be heading downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you are trading.

Contracts & Details

Margin Required Per 1Lot - € 250

Value per Pips - € 1

Note the pip value of IT 40CASH is € 1 compared & analyzed to the pip value of other indices such as Germany DAX and EUROSTOXX 50 whose value of one pip per lot is € 0.1 - However, average pip movement for this index is much lower as when compared and analyzed to other indexes such as DAX30 & EURO STOXX.

NB: Even though general trend is in general move upward, as a trader you've to consider and factor in the daily market price volatility, on some of the days the Indices may move in a range or even retrace and pull back, market pullback/retracement move may also be a large one at times & therefore you as a trader you need to time your entry precisely using this trading strategy: Stock strategy & at same time use the proper and appropriate money management methods & guidelines just in case there's unexpected market trend volatility. About money management principles and guidelines in stock indices trading lessons: What's Stock index money management guidelines/rules and money management methods.

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