FTSEMIB40 Stock Index
FTSE MIB stock index tracks top 40 most traded stocks in Borsa Italiana - Italian Stocks Market. This Index is also referred to as the Italian 40 Stock Index. The 40 stocks included in this index are selected from most traded stocks from the most profitable industries in the Italian economy.
The FTSEMIB40 Stock Index Chart
FTSEMIB40 chart is illustrated and shown above. On above example this instrument is named IT 40CASH. As a trader you want to find a broker that provides FTSEMIB40 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 MetaTrader 4 FX Trading Platform.
Other Info about FTSEMIB40 Index
Official Stock Index Symbol - FTSEMIB:IND
The 40 constituent stocks that constitute FTSEMIB40 Stock Index are selected from top performing Italian firms that are most lucrative. These stocks are also selected from the most profitable industries in the Italian economy.
Strategy to Trading FTSEMIB40 Index
FTSEMIB40 index generally moves upward over longterm because stocks choosen represent best sectors in Italian economy hence in general this stock 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 toward upwards trend direction of this Index.
As a trader you want to keep buying as the stock index moves upwards. When Italian economy is performing good (most times it's performing good) this upwards trend is more likely to be in place. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down and Recession
During economic slow-down and recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of firms that are reporting lower profits & hence Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index that you are trading.
Contracts & Details
Margin Requirement Per Lot - € 250
Value per Pips - € 1
Note pips value of IT 40CASH is € 1 compared to the value of other indices such as Germany DAX & EURO STOXX whose value of 1 pip per lot is € 0.1 - However, the average pips movement for this index is much lower as compared to other indexes such as DAX30 & EURO STOXX.
Note: Even though general trend is generally moves upwards, as a trader you've to consider & factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the market pullbackretracement move may also be a significant one at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: Stock strategy & at same time use proper money management guide-lines just in case there's more unexpected volatility in the market trend. About stock index money management guidelines courses: What's Index equity management & Stock Indices money management methods.
