FRA 40 Index

FRA 40 is a France Stock Market Index that tracks performance of the top 40 largest stocks in Euronext Paris Stock Exchange. This index tracks capitalization of the top 40 stocks included.

The FRA 40 Trade Chart

The FRA 40 trade chart is displayed & illustrated and shown above. On the example above this is named as FRA40CASH. As a trader you want to find a broker that provides FRA 40 trade chart so that you can begin to trade it. The example above is of FRA 40 on MT4 Forex & Indices Trading Platform.

Other Information about FRA 40 Index

Official Symbol - FRA40:IND

The 40 components stocks that make up the FRA 40 are selected from the top companies in France. The Stock Index calculation is reviewed quarterly.

Strategy for Trading FRA 40 Stock Index

FRA 40 tracks capitalization of the top 40 companies in France. This index in general moves upward over the 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 and therefore this stock index will also move in an upwards trend. A good 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 business growth prospects. It is because to this reason that investors begin to sell stocks of companies reporting lower profits & therefore index tracking these particular stocks will also start to move downward.

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

Contracts and Specifications

Margin Requirement Per 1 Lot - € 40

Value per 1 Pips - € 0.1

NB: Even though general trend is generally upward, as a trader you've to factor in daily market volatility, on some days the index might oscillate or even retrace, index market retracement may also be significant at times & therefore as a trader you need to time your entry precisely using this trade strategy: Indices trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index topics: What is index money management and index money management methods.