CAC40 Index

The CAC40 Index is a France Indices Market Stock Index that keeps track of performance of top 40 largest stocks in Euronext Paris Stock Exchange. This Stock Index tracks capitalization of top 40 stocks included.

The CAC40 Index Trading Chart

The CAC40 Index trading chart is shown and illustrated above. On the above example this Stock Index is named FRA 40CASH. As a trader you want to find a broker that provides CAC40 Index trading chart so that you can begin to trade it. The Indices example above is of CAC40 Stock Indices on MT4 Forex and Stock Indices Trading Software.

Other Information about CAC40 Index

Official Symbol - CAC:IND

The 40 component stocks that makes up CAC40 Index are selected from the top companies in France. The Stock Index calculation is reviewed quarterly.

Strategy for Trading CAC40 Index

The CAC40 Index tracks capitalization of top 40 companies in France. This Stock Index in general moves upward over long-term because French economy also shows strong growth.

As a trader you want to be biased & keep buying as the index moves upward. When French economy is doing well most of these top stocks will continue to move up & therefore this stock index will also move in an upwards trend. A good stock indices trade strategy would be to keep buying the dips.

During Economic Slow-Down & Recession

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

Therefore, during these times Stock Index trends are likely to be moving downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you are trading.

Contracts & Specifications

Margin Requirement Per Lot - € 40

Value per Pips - € 0.1

Note: Even though general trend is generally upwards, as a trader you have to consider & factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the Indices market retracement move might also be a significant one at times & therefore as a trader you need to time your trade entry precisely using this trade strategy: Stock index trading strategy and at same time use proper money management guidelines just in case there is more unexpected volatility in the market trend. About money management methods in stock indices trading topics: What is Stock Index money management & Indices money management methods.