FTSEMIB40 Stock Index
FTSE MIB index tracks top 40 most traded stocks in the Borsa Italiana - Italian Stocks Market. This Stock Index is also referred to as the Italian 40 Stock Index. The 40 stocks included in this index are picked from the most traded stocks from the most profitable industries in the Italian economy.
The FTSEMIB40 Stock Index Trade Chart
FTSEMIB40 Stock Index trading chart is illustrated & displayed above. On above example this instrument is named IT 40CASH. As a trader you want to find a broker that provides FTSEMIB40 Stock Index trading chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of FTSEMIB40 Stock Index on the MT4 FX Platform Software.
Other Info about FTSEMIB40 Stock Index
Official Index Symbol - FTSEMIB:IND
The 40 constituent stocks that make up FTSEMIB40 Stock Index are picked from the top Italian firms that are most lucrative. These stocks are also selected from the most profitable industries in the Italian economy.
Strategy to Trading FTSEMIB40 Stock Index
FTSEMIB40 index generally moves upward 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 Stock Index, you want to be more biased towards upward trend direction of this Stock Index.
As a trader you want to keep buying as the stock index moves upwards. When the Italian economy is performing well (most times it's performing good) this upward trend is more likely to be in place. A good index trade strategy would be to buy dips.
During Economic SlowDown & Recession
During economic slowdown & recession times, corporations begin to report lower profits and lower growth prospect. It's due to this reason that traders begin to sell stocks of corporations that are reporting lower profits and hence the Stock Indices tracking these specified stocks will also begin to move downwards.
Hence, during these times trends are likely to be heading downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you're trading.
Contracts and Details
Margin Required Per 1Lot - € 250
Value per Pips - € 1
Note the pip value of IT 40CASH is € 1 compared to the value of other stock indices such as Germany DAX and EURO STOXX whose value of 1 pip per lot is € 0.1 - However, average pip movement for this stock index is much lower as compared to other indexes such as DAX30 and EURO STOXX.
NB: Even though general trend is generally upwards, as a trader you've to consider and factor in the daily market volatility, on some of the days the Stock Indices might move in a range or even retrace & pullback, market pullback move might also be a significant one at times and hence as a trader you need to mark-time your entry precisely using this trading strategy: Stock strategy and at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About equity management methods in indices topics: What's Stock index equity management and equity management methods.
