SMI 20 Stock Index
SMI 20 Stock Index or Swiss Market Index 20 is a stock market index that keeps track of the top 20 companies in Six Swiss Exchange in Switzerland. This 20 stocks shown represent the blue chip stocks in Six Swiss Exchange Market - these are also the most traded stocks in this stock exchange.
The SMI 20 Stock Index Trade Chart
The SMI 20 Stock Index trade chart is displayed & illustrated and shown above. On the example above this Stock Index is named as SWI20CASH. As a trader you want to find a broker that provides SMI 20 Stock Index trade chart so that you can begin to trade it. The index example above is of SMI 20 Stock Index on MT4 Forex & Indices Trading Platform.
Other Information about SMI 20 Stock Index
Official Symbol - SMI:IND
The 20 components stocks that make up the SMI 20 Stock Index are selected from the top companies in France. The 20 stocks make up most of the trading turnover volume in the SIX Swiss Exchange Market. The Stock Index calculation is reviewed yearly.
Strategy for Trading SMI 20 Stock Index
SMI 20 Stock Index tracks capitalization of the top 20 companies in Switzerland. This index in general moves upward over the long-term because Swiss economy also shows strong growth. The Swiss also has one of the strongest banking system in the world - making the Swiss one of the most reliable economy.
As a trader you want to be biased & keep buying as the index moves upward. When Swiss 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 stock index 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 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 - CHF 100
Value per 1 Pips - CHF 0.5
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 index money management and index money management methods.
