EURO STOXX 50 INDEX - Definition and Characteristics

Performance

The performance of the EU STOXX index has been pretty bad over the previous years. As evident from the chart, the index has not moved anywhere since 2014. Considering that the index consists of the biggest EU companies, we must say, that the performance is really disappointing.

Especially, when compared to the US equity indices, the difference in return is quite astonishing. Therefore, long-term investors might stay away from this index, but short-term traders could still benefit from its volatility.
 

_{Source: Purple Trading Metatrader 4}

EU STOXX 50 - quotes and trading

You can trade the EU STOXX index in our Purple Trading Metatrader 4 platform. First, find the ticker STOXX50 in the Metatrader 4 platform and press the new order button. The following window will pop up. 

_{Source: Purple Trading Metatrader 4}

Lot value calculation

When you click on the STOXX50 ticker in our Metatrader 4 platform, you can see that the spread between the Ask and Bid price is circa 2.00 EUR during the times of high liquidity (usually when London and New York are open for trading).

The minimal volume for this index is one micro lot (0.01). If you trade a mini lot (0.1), you will earn or lose 1 EUR for each EUR the index makes. When trading half a lot, each EUR of the index movement will yield 5 EUR of profit/loss. For example, you buy half a lot at 3,810 EUR, and the index goes to 3,840 EUR. Your total profit will be 150 EUR (calculated as 30 EUR movement * 5 EUR profit per each EUR of the move). The same logic applies to calculate your profit or loss when entering a short position.

Keep in mind, that this index is quoted in EUR; thus, if your account is in USD, each point of the index will yield slightly more in USD, according to the actual EURUSD rate.

As with everything, you can trade at the current market price (market execution), or you can use pending orders (limit and stop orders). It's not necessary to enter the stop-loss and take-profit order right now – you can open the trade without them and add them later.

Start trading STOXX50 today!