IT40 Indices

IT40 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.

IT40 Chart

IT40 chart is illustrated & shown above. On above example this instrument is named IT 40CASH. As a trader you want to find a broker that provides IT40 trading chart so that you as a trader can start to trade it. The example Which is shown above is that one of IT40 Stock Index on MetaTrader 4.

Other Info about IT40 Stock Indices

Official Stock Indices Symbol - IT 40:IND

The 40 constituent stocks that constitute IT40 Stock Indices 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 IT40 Index

IT40 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 Stock Index, you want to be more biased toward upward trend direction of this Stock 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 Indices trade strategy would be to keep buying the dips.

During Economic Slow-Down and Recession

During economic slow-down and recession times, corporations start to report lower profits and lower growth prospect. It's due to this reason that traders start to sell stocks of firms that are reporting lower profits and hence 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 trading strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.

Contract Specs

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 stock indexes such as DAX30 and EURO STOXX.

Note: Even though general trend is generally moves upwards, as a trader you've to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the market pullbackretracement move might also be a substantial one at times and therefore 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 index equity management strategies.