IT 40 Index
IT 40 index keeps track of the top 40 most traded stocks in Borsa Italiana - Italian Stock Market. This index is also referred to as the Italian 40 Stock Index. The 40 stocks included in this stock index are selected from the most traded stocks from the most lucrative industries in the Italian economy.
The IT 40 Trade Chart
The IT 40 trade chart is displayed & illustrated and shown above. On the example above this instrument is named as IT40CASH. As a trader you want to find a broker that provides IT 40 trade chart so that you can begin to trade it. The example above is of IT 40 on MT4 Platform.
Other Information about IT 40 Index
Official Symbol - IT40:IND
The 40 components stocks that make up the IT 40 are selected from the top Italian companies that are most profitable. These stocks are also picked from the most lucrative industries in the Italian economy.
Indices Trade Strategy for IT 40 Index
IT 40 index in general moves upward over the long-term because stocks choosen represent the best sectors in Italian economy therefore in general this stock index will keep moving up over time - because these sectors will be doing booming business.
As a trader wanting to trade this index, you want to be more biased toward upwards trend direction of this index.
As a trader you want to keep buying as the index moves upward. When Italian economy is doing well (most times it is doing well) this upwards trend is more likely to be ruling. A good stock index trade strategy would be to buy 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 Specifications
Margin Requirement Per 1 Lot - € 250
Value per 1 Pips - € 1
Note pips value of the IT40CASH is € 1 compared to the value of other indices such as Germany DAX & EURO STOXX whose value of 1 pip per lot is € 0.1 - However, average pips movement for this index is much lower as compared to other indices such as DAX 30 & EURO STOXX.
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 stock index trading topics: What is money indices management and stock index trading money management methods.
