SMI20 Stock Index
SMI20 Stock Index or Swiss Market Stock Index 20 is a Stock Indices market indices that keeps track of top 20 companies in Six Swiss Exchange in Switzerland. This 20 stocks shown represent the blue chip stocks in the Six Swiss Exchange Market - these are also the most traded stocks in this Stock Index exchange.
The SMI20 Stock Index Trade Chart
The SMI20 Stock Index trade chart is shown and illustrated above. On the above example this Stock Index is named SWI 20CASH. As a trader you want to find a broker that provides SMI20 Stock Index trade chart so that you can start to trade it. The Stock Indices example above is of SMI20 Stock Index on the MetaTrader 4 Forex & Indices Trading Software.
Other Information about SMI20 Stock Index
Official Symbol - SMI:IND
The 20 components stocks that makes up SMI20 Stock Index are picked from the top companies in France. The 20 stocks make up most of the trading turnover volume in the SIX Swiss Exchange Market. The Index calculation is reviewed yearly.
Strategy for Trading SMI20 Stock Index
SMI20 Stock Index tracks capitalization of top 20 companies in Switzerland. This Stock Index in general moves upward over longterm because the Swiss economy also shows strong growth. The Swiss also has one of the strongest banking system in the world - making Swiss one of the most reliable economy.
As a trader you want to be biased and keep buying as the stock index moves upward. When the Swiss economy is doing well most of these top stocks will continue to move up & therefore this index will also move in an upward trend. A good indices trade strategy would be to keep buying the 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 - CHF 100
Value per Pips - CHF 0.5
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.
