Binary options: Trading on the CAC 40 with binary options (Part 2)

binary-options-cac40-tradingThis article is the second in a series dedicated to trading on the CAC 40, one of the principal international indexes. The first part provided a precise definition of a stock index how it is calculated. This next section deals with the additional elements of calculation within the stock index to help you to better understand how to trade stock indexes with binary options.

How is the CAC 40 calculated?

Stock index quotation values are updated every 15 seconds during the day on the Euronext exchange which is open from 9am to 5:30pm. In the first part of the day, orders can accumulate without affecting the quote that is updated as of 9am. Registering a binary option at this precise moment can be wise when a likely evolution has been predicted. Keep in mind that the value of the CAC 40 is calculated from non-invested dividends, but it also takes into account the reinvested dividends that will increase a company’s value.

What indicators should be followed to trade on the CAC 40?

When following the CAC 40, it is important to remember that it reflects the state of the French economy; so many indicators are to be considered. It would also be beneficial to follow the PIB, which is the best indicator of the French economy, as well as taking a look at the solvency ratings provided by rating agencies. The unemployment rate is also an indicator that can influence the CAC 40.

Study as well the available graphic indicators that decipher the price movements in comparison to historical movements. Extrapolating a future trend is more accurate when you integrate the graph information with the economic and financial news and macroeconomic results. In the end you will become more adept at extrapolating trends.

The CAC 40 is an exciting index upon which to trade binary options, as there is a good chance of making profits. Trade now on the CAC 40 by reviewing our binary options broker comparison tool.

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