What is the Euro STOXX 50 index?
Euro Stoxx 50 index tracks the performance of 50 large blue-chip companies in Europe and its constituents are chosen from companies quoted on the Euro Stoxx index. The Europe 50 index is operated by the Stoxx (owned by Deutsche Börse AG) as a market-capitalisation weighted stock index composed of stocks from 11 Eurozone countries. Companies from the UK are not eligible for inclusion.
Changes in constituents are performed once a year in September where stocks can be removed or added. The companies included in Europe 50 are representatives of different industries such as food and beverage, health care, financial services, oil and gas, personal goods, etc.
The importance of the index is evident because it is the base for multiple sub-indices and it is licensed to be used as a reference for derivative instruments (futures, forwards, options) as well as Exchange-traded funds.
Euro Stoxx 50 index value
There are multiple factors which can affect the value of the index. Changes in the price of individual companies can have a certain level of influence. Political events and changes in economic conditions of Eurozone countries will also affect Euro STOXX 50 index value. Moreover, movements in the euro exchange rate will influence the Euro STOXX 50.
Trading Euro Stoxx 50 can provide some lucrative opportunities, especially for those who open trades in both directions. Weekly price charts show that the index constantly switches between short-to-medium term upward and downward trends. A similar situation can be seen on the lower time frames and the daily price chart shows that the retracements can be up to 15 per cent or even more depending on the economic conditions.
How to trade Euro Stoxx 50?
Euro Stoxx 50 trading can be performed in multiple ways and with different types of instruments. You can find one of them on currency.com leveraged trading platform. Using a blockchain technology Currency.com has created tokens for different stocks, commodities and indices. Transactions can be executed rapidly and with lower costs compared to traditional trading.
Currency.com gives its traders leverage of up to 1:100 when trading tokenised assets. Tokenised Euro Stoxx 50 trading can be is performed with a margin of 1 per cent. With such a low margin, you have the potential to multiply your rewards by 100 compared to what you would make without leverage. Stated differently, you will need to have enough available capital to cover 1 per cent of the position value.
For instance, if you want to open a position with tokenised Euro Stoxx 50 worth £30,000 you need to have a minimum of £300 (or 1 per cent) of capital to execute the trade. However, you will make profits based on a position of £30,000 and that means that 3 per cent changes in Euro Stoxx 50 value in your favour can bring you £900 in gains.
As for comparison, trading Euro Stoxx 50 with some other instruments with the same amount of capital (£300) and the same price movement of 3 per cent will bring you £9. The difference is more than obvious. Additionally, Euro Stoxx 50 trading on Currency.com platforms is available not only with fiat currencies but also with crypto. Traders no longer need to convert their Bitcoin or Ethereum before they decide to Euro Stoxx 50 because you can use them directly to open trades.
Tokenised Euro Stoxx 50 trading guide
Using Currency.com leveraged platform to buy or sell tokenised assets is performed with a couple of simple steps, which are:
- Step 1: Following the two-factor authentication security open an account with Currency.com
- Step 2: Decide if you want to put Bitcoin or Ethereum or fiat currency on your account.
- Step 3: Estimate the value of the position you plan to open and don’t forget about the leverage of up to 1:100 provided by Currency.com. You need to have 1 per cent of the position's value.
- Step 4: Based on the signals from your strategy, you can decide to speculate on upward movement in value or you might want to take a short position.
- Step 5: Currency.com will primarily link the buy and sell orders on its platform between its clients while the outstanding orders are then hedged on Capital.com, LMAX Digital or through Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- Step 6: The last step deals with your decision when to close your positions and take your rewards. You can define take profits and stop-loss orders on currency.com
Why trade tokenised Euro Stoxx 50 with Currency.com
Europe 50 index trading at Currency.com tokenised securities exchange has a number of advantages. Tokenised securities are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
- One-stop crypto trading platform
Trade tokenised Euro Stoxx 50 with Bitcoin or Ethereum. Benefit from the commodity's price movements without turning your crypto assets into fiat.
Trade tokenised Europe 50 with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world's top markets, like the Euro Stoxx 50 index, with up to 1:100 leverage.
- Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
We have a scalable and low latency order management system, which can execute 50 million trades per second.
Currency.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.