The EU50 Index

The EU50 Index shows movement of the top 50 Blue Chip Stocks in Euro Zone. These stocks are picked from most lucrative business sectors of the Euro Zone economy. The Top 50 Stocks are also picked from a variety of Euro Zone countries. These 50 stocks are the most liquid stocks in Euro Zone. The countries Included are 12 in total and these are:

Germany
France
Netherlands
Portugal
Spain
Belgium
Finland
Italy
Austria
Greece
Ireland
Luxembourg

The EU50 Stock Index is represented on a chart as a Financial Instrument just like currencies & stocks, and this chart can be traded just like forex charts.

The EU50 trading chart movement can be analyzed using technical analysis and other indicators can be placed on this Trading Chart.

The EU50 Chart

The EU50 trading chart is shown and illustrated below. On example below this financial instrument is named EU 50CASH. As a trader you want to find a broker that provides EU50 trading chart so that you can start to trade it. Example displayed below is of EU50 Indices on MT4 FX Software.

Trading the EU50 Trade Chart - The EU50 Index

Just as currencies, a stock index 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 Details about EU50 Index

Market Time - 0900 - 1800 CET

Stock Indices Symbol - SX 5E or SX 5E:IND

The 50 components stocks which constitute EU50 Index are re-evaluated once each year to determine if to make changes to this composition or not.

Strategy for Trading EU50 Index

The EU50 Index is made up of blue chip stocks choosen from the top performing sectors in the Euro Zone: therefore a good stock indices trade strategy to trade EU50 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 corporations behind these stocks are the best & most lucrative corporations in Europe.

The EU50 Index is also revised yearly so that if one Stock Indices is not doing well then it's replaced with an alternative Indices that's doing good. This ensures that most of the times EU50 Index will keep heading upwards.

As a trader you want to be biased & keep buying as the stock index moves upwards. When European economies are doing well this upward trend is more likely to be in-favor. A good stock indices trade strategy would be to buy the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits & lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits & therefore Stock Indices tracking these specified stocks also will begin to move downward.

Hence, during these times, trends are likely to be moving downwards & 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 Details

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 & 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 trading strategy: Stock strategy & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About Stock index money management rules courses: What is index equity management and Indices money management methods.

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