SX 50 Stock Index
SX 50 Index represents the market trend movement of the top 50 Blue Chips Stocks in EuroZone. These stocks are selected from most profitable sectors of EuroZone economy. The Top 50 Stocks are also selected from a variety of EuroZone countries. These 50 stocks are the most liquid stocks in EuroZone. The countries Included are 12 in total & these are:
- Germany
- France
- Netherlands
- Portugal
- Spain
- Belgium
- Finland
- Italy
- Austria
- Greece
- Ireland
- Luxembourg
SX 50 Index is represented on a chart as a Financial Instrument just like currencies & stocks, and this trading chart can be traded just like ++forexforex charts.
SX 50 chart movement can be analyzed using technical analysis & other indicators can be placed on this Chart.
SX 50 Chart
SX 50 chart is shown & displayed below. On the example below this financial instrument is named SX50CASH. As a trader you want to find a broker that provides SX 50 chart so that you can start to trade it. The example That is shown below is that of SX 50 Indices on MT4 FX & Indices Software.
Just as currencies trading, a trader can use their own strategy or trading system to trade these Indices the same way that they trade currencies. Traders can even use their Expert Advisors to trade these Indices.
Other Information about SX 50 Index
Market Time - 0900 - 1800 CET
Official Stock Indices Symbol - SX 5E or SX 5E:IND
The 50 component stocks that makes up the SX 50 Index are revised once every year to determine if to make changes to this composition or not.
Strategy to Trading SX 50 Stock Index
SX 50 Index is made up of blue chip stocks choosen from best performing sectors in the EuroZone: hence a good stock index trade strategy to trade SX 50 Index is to trade long most times. This is because generally the best stocks in Europe will generally keep heading up and up because the companies behind these stocks are the best & most lucrative companies in Europe.
SX 50 Index is also reviewed yearly so that if one Indices is not doing well then it is replaced with another Indices that is doing good. This ensures that most times SX 50 Stock Index will keep going up.
As a trader you want to be biased and keep buying as the stock index moves upward. When European economies are doing well this upward trend is more than likely to be ruling. A good stock index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down and 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 Indices tracking these specified stocks will also 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're trading.
Contracts and Specifications
Margin Requirement Per Lot - € 40
Value per Pips - € 0.1
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 Indices market retracement move might also be a substantial one at times & hence as a trader you need to mark-time your trade entry precisely using this trade strategy: strategy and at same the time use proper equity management principles just in case there is more unexpected volatility in the market. About equity management strategies in Stock Indices tutorials: What's Stock iindices equity management and Stock Indices equity money management methods.
