FTSEMIB40 Stock Index
FTSE MIB index tracks top 40 most traded stocks in the Borsa Italiana - Italian Stocks Market. This Stock Index is also referred to as the Italian 40 Stock Index. The 40 stocks included in this index are picked from the most liquid stocks from the most profitable industries in the Italian economy.
The FTSEMIB40 Stock Index Trade Chart
The FTSEMIB40 Stock Index trade chart is shown and illustrated above. On the above example this instrument is named IT 40CASH. As a trader you want to find a broker that provides FTSEMIB40 Stock Index trade chart so that you can start to trade it. The Stock Indices example above is of FTSEMIB40 Stock Index on the MetaTrader 4 Forex & Indices Trading Software.
Other Information about FTSEMIB40 Stock Index
Official Symbol - FTSEMIB:IND
The 40 components stocks that makes up FTSEMIB40 Stock Index are picked from the top Italian companies that are most lucrative. These stocks are also selected from the most profitable industries in the Italian economy.
Strategy for Trading FTSEMIB40 Stock Index
FTSEMIB40 index in general moves upward over longterm because the stocks choosen represent best sectors in the Italian economy therefore in general this 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 towards upward trend direction of this Stock Index.
As a trader you want to keep buying as the stock index moves upward. When the Italian economy is doing well (most times it is doing well) this upwards trend is more likely to be ruling. A good indices trade strategy would be to buy dips.
During Economic SlowDown and Recession
During economic slowdown and 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 the Stock Indices tracking these specified stocks will also begin to move downwards.
Therefore, during these times Stock Index trends are likely to be heading 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 Required Per Lot - € 250
Value per Pips - € 1
Note the pip value of IT 40CASH is € 1 compared to the value of other stock indices such as Germany DAX & EURO STOXX whose value of 1 pip per lot is € 0.1 - However, average pip movement for this stock index is much lower as compared to other indexes such as DAX30 & EURO STOXX.
NB: Even though general trend is generally upward, as a trader you have to consider & factor in the daily market volatility, on some of the days the Stock Indices might move in a range or even retrace and pullback, Stock Indices market retracement move may 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 & 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 indices trading topics: What is Stock Index money management & Stock Indices money management methods.
