SWI20 Index
SWI20 Stock Index or Swiss Market Stock Index 20 is a market indices that keeps track of top 20 firms in Six Swiss Exchange in Switzerland. This 20 stocks shown represent the blue chip stocks in Six Swiss Exchange Market - these are also the most liquid stocks in this Stock Index exchange.
SWI20 Chart
SWI20 chart is shown and illustrated above. On the 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 begin to trade it. The Indices example shown above is that of SWI20 Stock Indices on MT4 FX Trading Platform.
Other Information about SWI20 Index
Official Stock Indices Symbol - SWI 20:IND
The 20 component stocks that makes up the SWI20 Index are selected from top companies in France. The 20 stocks make up most of the total trading turnover volume in the SIX Swiss Exchange Market. The calculation is revised yearly.
Strategy for Trading SWI20 Index
SWI20 Index tracks capitalization of top 20 firms in Switzerland. This Index in general moves upwards over long-term because Swiss economy also shows strong growth. The Swiss also has one of the strongest banking system in the world - making the Swiss economy one of the most reliable economy.
As a trader you want to be biased and keep buying as the stock index moves upward. When Swiss economy is doing well most of these top stocks will continue to move up and hence this stock index will also move in an upward trend. A good stock index trade strategy would be to keep buying the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, firms start to report lower profits & lower growth prospect. It is because of this reason that investors start to sell stocks of companies that are reporting lower profits & hence Stock Indices tracking these specified stocks also will begin to move downward.
Therefore, during these times, trends are likely to be moving downwards and 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 and Specs
Margin Requirement Per Lot - CHF 100
Value per Pips - CHF 0.5
Note: Even though general trend is generally moves upwards, as a trader you have to consider and factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace and pull-back, the market retracement move may also be a significant one at times & therefore as a trader you need to mark-time your trade entry precisely using this trade strategy & at same the time use proper equity money management guidelines just in case there is more unexpected volatility in the market. About Stock iindices equity money management rules courses: What's Stock iindices equity money management & Stock Indices equity money management strategies.
