SWI20 Stock Index
The SWI20 Index or Swiss Market Stock Index 20 is a market indices that keeps track of top 20 companies in Six Swiss Exchange in Switzerland. This 20 stocks displayed represent the blue chip stocks in Six Swiss Exchange Market - these are also the most liquid stocks in this Index exchange.
The SWI20 Index Chart
The SWI20 trade chart is displayed & shown above. On above example this Stock Index is named SWI 20CASH. As a trader you want to find a broker that provides SWI20 chart so that you can start to trade it. Example displayed above is of SWI20 Stock Indices on MetaTrader 4 Forex TradeSoftware.
Other Details about SWI20 Stock Indices
Official Stock Indices Symbol - SWI 20:IND
The 20 components stocks which constitute SWI20 Stock Indices are chosen from the best performing corporations in France. The 20 stocks constitute majority of the turnover volume in the SIX Swiss Exchange Market. The calculation is reviewed yearly.
Trade Strategy for Trading SWI20 Index
The SWI20 Index tracks capitalization of top 20 companies in Switzerland. This Stock Index generally move upwards over long term because Swiss economy also shows strong growth. Swiss also has one of the strongest banking system in the globe - making Swiss economy one of the most reliable economy.
As a trader you want to be biased & keep buying as the stock index moves upwards. When Swiss economy is performing good most of these top stocks will continue moving up & therefore this stock index also will move in an upwards trend. A good indices trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies begin to report lower profits and lower growth prospect. It is due to this reason that investors start to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are likely to be moving downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contract Specifications
Margin Requirement Per Lot - CHF 100
Value per Pip - CHF 0.5
Note: Even though general trend is generally moves upward, as a trader you've got 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 retracement move may also be a significant one at times & hence as a trader you need to time your entry precisely when using this strategy: strategy and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About index equity management rules courses: What is index equity management and stock index money management strategies.
