The IBEX 35 index or Spain 35 represents the shares price of 35 most liquid companies listed on the Stock Exchange Interconnection System which connects the four stock exchanges in Spain. The index was established in 1992 but it has been calculated since 1989 having a base value of 3,000. It is composed of large stocks from different industries, such as the financial sector, technology, medical, oil and gas, telecommunications, as well as other sectors. Companies can be included in the index based on the trading volume in Euros, the quality of their trading volume, the stability of the traded security and a minimum capitalisation compared to the index market cap.
However, it does not mean that the stocks included in the index are the largest stocks on the exchange because one of the primary selection criteria is the degree of liquidity. Also, changes in the stock price of companies with a larger market cap will have a higher impact on Spain 35 index value.
Because of the way this index is structured, it provides an overview about the state of the Spanish economy. Moreover, the IBEX 35 index is used as an underlying index for trading derivative instruments.
While some of the leading indices have a defined trending direction, one particularity with IBEX 35 is that it does not move in a strong trend as it can be seen from its price chart. Its price moves sideways for multiple years and during the last couple of years the index moved within the range from 8,400 up to nearly 11,100. The index broke its support level of 8,400 in early March 2020 and hit a multiyear low value of around 6,000 points within a week.
Aside from the price chart, we can also keep an eye on company-specific factors which influence individual stocks price as well as the overall economic activity. Try to watch and analyse the changes in macroeconomic indicators (GDP, interest rates, inflation, unemployment rate, etc.) for Spain and for the EU.
There are a variety of ways to trade IBEX 35 and each of them has its specificality. Define a set of criteria to help you in selecting an adequate instrument according to your trading preferences. For that reason, you should pay close attention to attributes such as liquidity, costs, degree of complexity, profit-making potential (if you have little money to invest), safety and options to fund your account.
IBEX 35 trading can be performed with derivative instruments such as futures or options, mutual funds or ETFs. However, these instruments come with certain limitations. Yet, you can decide to trade IBEX 35 with technological advance methods, such as tokenised assets, that cover all aspects of a good trading instrument.
Tokenised assets offered by Curency.com are developed based on a blockchain technology. Developing digital assets such as tokens related to a real asset ensures that traders do not have to own the reference asset to make profits. Namely, they can trade IBEX 35 index tokens and still enjoy the same degree of profitability.
Moreover, trading tokenised assets with Currency.com can be executed with both fiat money or cryptocurrencies. Now you can open positions with crypto and eliminate the losses arising from the conversion of crypto to fiat money.
Not only you can trade with cryptocurrencies, but Currency.com trading platform also gives traders the chance to make larger profits with the same level of capital. Due to the leverage of 1:100 offered by the platform, you can open larger positions with the capital at your disposal and this leverage translates into a margin of 1 per cent. For example, if you decide to trade tokenised IBEX 35 index by opening position worth $20,000 (£ 15,841) you will need just 1 per cent of your capital or $200 (£158.4).
The process for trading tokenised IBEX 35 index on Currency.com is done in a few simple steps, which are:
IBEX 35 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.
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