For several years, the eurostoxx 50 has been one of the most watched stock market indices by journalists and investors. In fact, regularly mentioned, the latter reflect the state of the economic landscape of the most important companies in a given area or sector. What to remember about eurostoxx 50 ? The detail in this article.
Eurostoxx 50 : what is it ?
Like other indices, the Eurostoxx 50 is the popular stock market index in the euro area. It brings together around fifty European companies selected for the value of their market capitalizations. In reality, eurostoxx 50 is absolutely relevant to countries which have the euro as their single currency. Thus, neither Europe nor the European Union is represented. The eurostoxx 50, in fact, assesses the average performance of the 50 largest companies in the euro area. Being little known during its first years of existence, this index became, following the creation of the euro zone in 2002, one of the most important stock market indices in the world.
How to trade the eurostoxx 50 index ?
Like other stock indices, eurostoxx 50 is not a financial item as such, but a simple mathematical formula. It is therefore impossible to pay for it or at least to sell it directly in order to count on the commercial benefits of the company. Indeed, to trade this index, it is therefore essential to use financial derivative products, such as CFDs which have eurostoxx 50 as an underlying.
Today, almost all online brokers opt for this type of derivative product on their trading platforms. As a result, it is practically possible to trade each index value individually, through CFDs. In addition, the majority of investors choose eurostoxx 50, imperatively focusing on the securities of companies with the largest capitalizations. These latter companies include Total and Sanofi-Aventis for France, or Bayer and Siemens AG for Germany, which respectively have higher liquidity.
In addition, at the level of Trading strategies, the Eurozone index can fit into both short-term strategies, such as Scalping or Day Trading, and long-term strategies, such as Swing Trading. It should be noted, however, that the trader who trades on the Eurostoxx 50 must regularly monitor the economic situation.