CAC40 Stock Index
The CAC40 Index is a France Market Stock Index that keeps track of performance of top 40 biggest stocks in Euronext Paris Stock Exchange Market. This Index tracks capitalization of top 40 stocks included.
The CAC40 Index Chart
The CAC40 Stock Index chart is displayed & shown above. On above example this Index is named FRA 40CASH. As a trader you want to find a broker that provides CAC40 Stock Index chart so that you can begin to trade it. Example displayed above is of CAC40 Indices on MetaTrader 4 Forex Software.
Other Details about CAC40 Index
Official Stock Indices Symbol - CAC:IND
The 40 components stocks which constitute CAC40 Stock Index are chosen from the best performing corporations in France. The calculation is reviewed quarterly.
Strategy for Trading CAC40 Stock Index
The CAC40 Index tracks capitalization of top 40 companies in France. This Stock Index generally move upwards over long term because French economy also shows strong growth.
As a trader you want to be biased & keep buying as the stock index moves upwards. When French 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.
Contracts & Specifications
Margin Requirement Per Lot - € 40
Value per Pip - € 0.1
Note: Even though general trend is generally moves upward, as a trader you've got 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 retracement move might also be a substantial one at times and therefore as a trader you need to time your entry precisely when using this trading strategy: Index strategy and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About indices equity management guidelines courses: What is stock index money management & Indices equity management strategies.
