Features of GEMFOREX’ CAC40(FRA40) trading

Features of GEMFOREX’ CAC40(FRA40) trading

  • You can trade in the same way as Forex
  • Adopts MetaTrader 4 (MT 4)
  • No rejection and contract refusal
  • Absolutely No Hidden Markup
  • Realizes 99.79% of commitment within 0.78 seconds
  • The shortest 30 seconds account opening & Easy, speedy until start of trading

And more…

GEMFOREX continues to pursue a comfortable environment of traders, and CAC40(FRA40) can be used with confidence by beginners and those experienced people in Forex under the MT 4 environment familiar to CAC40(FRA40).

What is CAC 40 (FRA 40)

What is CAC 40 (FRA 40)

Thirty years have passed since it was created in 2007 as a representative stock index in France, but its history is still shallow compared to the history of the Nikkei Stock Average. CAC is named after taking the initials of COTATION ASSISTEE CONTINU. It is a stock with high market capitalization among the stocks listed on France.

Trading with that stock price index is called CAC 40 (FRA 40) trading.

Constituents of CAC 40 index

Constituents of CAC 40 index

CAC 40 is the top 40 French brands. Among the stocks listed on Euronext Paris, market capitalization is calculated using market capitalization weighted average. Incidentally, the market capitalization weighted average is not limited to CAC 40, it is a method used in various stock indices. It is the same in Japan's average stock price.

As constituents of CAC 40, there are the constituents of large corporate hotel group [accor], aircraft maker 's [Airbus], car manufacturer' s [Renault], defense airport communication manufacturer 'saffron' [valeo], oil field service group ' Technip], fashion conglomerate [keling] and others.

Other manufacturers famous in the world and Japan is familiar, Michelin of tire manufacturers and fashion brands [Louis Vuitton], insurance · financial group [AXA], car manufacturer [Peugeot], wine manufacturing [PERNO · RICAR] and others. It is characterized by consisting of stocks belonging to various representative industries. The market capitalization of the CAC index exceeds 1 trillion euros, and the oil energy company Totar is the market capitalization which is more than 100 billion market capitalization, which is the largest market value of CAC 40.

History of CAC40

Black Monday Dow Jones
※Image quotation:Wikipedia

Black Monday is an event that had a major impact on the stock index. New York stock index fell by 22% in one day. CAC 40 is the stock index that was created after Black Monday happened. Since the birth of the economy worldwide, CAC 40 has started with the lowest closing price in history.

After Black Monday, the global economy gradually shows signs of recovery and CAC 40 gradually goes up. Along with the breakthrough of the Nikkei Stock Average Index, the Nikkei Stock Average has shown nearly doubling growth in 1990. However, the price movement of CAC 40, which had been rising since 1990, reverses and falls. This is why the Iraqi army invaded Kuwait. Although there was no big decline, it was upwelling as it had been going up steadily so far.

From around 1996, CAC 40 starts to rise sharply. It is due to the spread of the Internet. It got the highest value of 922.23 in 2000, but it fell in 2003 as the bubble collapsed. After that, the economy recovered and gradually rose and it fell as emergencies such as subprime problem and Lehman shock occurred.

Stock index representing Euronext Paris

ユーロネクストパリを代表する株式指数

Euronext Paris is the French representative securities exchange. It was a Paris Stock Exchange before, but in 2000 there was a history that the Paris Stock Exchange, the Amsterdam Stock Exchange, the Brussels Stock Exchange merged and was established. The purpose of the merger is to integrate deliverable transactions, simplify cross-border trade, and group orders from multiple exchanges. In 2007 it merged with the NYSE Group, which operates the New York Stock Exchange.

CAC40 became a representative of Euronext Paris, but there are other indexes such as Dutch AEX index, Belgian BEL 20 index, Portuguese PSI all-stock index, etc. Regular dealing hours are from 9 am to 5 pm on weekdays except weekends and holidays set by exchanges. If it is Japan time, it will be from 16:00 to 23:30. Incidentally, the French stock index includes CAC Next 20, CACMid 60 of medium-sized stock index, CACSmall of small index, etc., which is composed of the second issue after CAC 40 besides CAC 40.

CAC 40 is a highly stable stock index

CAC 40 is a highly stable stock index

The CAC 40 is characterized by its high stability due to the fact that it is a stock index represented by companies representing France. Each of the 40 stocks has a large market capitalization, so even if a specific company becomes sluggish, the impact on the market as a whole is small. Since it is the average price of the stock price of the company, it is also attractive that the risk of sudden price movements when considering the market as a whole is small.

CAC 40 is a stock index that is also popular in CFD trading. There are features that make it easy to predict the future because there is a lot of information. Since it is made up of companies that have direct involvement in the country's economy, there is no need to check specific companies in detail, and it can be judged by the economy of the country. Even those who have never invested in stocks can do CFD trading without problems.

Factors that pushes CAC 40 to decline

CAC40が下落する要素

There is a risk that the CAC 40 will decline due to terrorism, emergencies and increased of geopolitical risk. However, if these events are not a factor that significantly affects the French economy, there are cases where risk hedging is done and turning to rise. When companies in the CAC 40-related economy deteriorate, it is common for them to decline in conjunction.

Also affecting the overall economy of Europe, we cannot ignore the influence of the situation of neighboring countries as well as France on the stock price. As the size of the company is large, there are also many related factors, so we need to forecast the future with a broad perspective.