What I Need to Know to Make a Profit on the IBEX 35

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IBEX_35

The IBEX 35 is the principal Spanish stock index calculated by the Madrid Stock Exchange (Bolsa de Madrid). The listing includes 35 companies from different industries having the highest market capitalization. It’s revised twice a year.

Total capitalization of the IBEX 35 amounts to €320 billion.

 

A list of the companies included in the IBEX 35:

Abengoa
Abertis
Acciona
Acerinox
Arcelor Mittal
ACS
Banco Popular
Banco Sabadell
Banco Santander
Banesto банки
Bankinter
BBVA
BME
Cintra
Criteria CaixaCorp
Enagás
Endesa
FCC
Ferrovial
Gamesa
Gas Natural
Grifols
Iberdrola
Iberdrola Renovables
Iberia
Inditex
Indra
Mapfre
Obrascón Huarte Lain
Red Eléctrica
Repsol YPF
Sacyr Vallehermoso
Técnicas Reunidas
Telecinco
Telefónica

How to Forecast the IBEX 35

You can follow the key news, events in the European economy, companies included in the index and influencing the IBEX 35 on the websites like

http://www.euroinvestor.com/markets/stocks/europe/spain/ibex-35

http://www.marketwatch.com/investing/index/ibex/news?CountryCode=xx

http://quotes.wsj.com/index/XX/IBEX

IBEX-35To forecast accurately future movements of the IBEX 35, a trader doesn’t need to keep track of all 35 companies included in the listing. He has just to understand what sectors these companies present and find the leading company in each sector.  The IBEX 35 includes such sectors as banking, construction, electric energy, machine building, and telecommunications.

 

If a trader knows what sectors the IBEX 35 is composed of, he can learn each as well as the factors influencing  them. Improvement in one of the sectors pushes up the index, and slack in another makes it move down.  A state of the sector directly dependson demand for products and services provided by the companies involved in it. Each economic sector is also impacted by the government policy. This includes tax policy, implementation of new standards, etc. that may have either positive or negative impact.

A state of the sector also depends on its attractiveness to investors. If investors put in money in the companies engaged, say, in machine building, this results in a rise of the companies and the sector.

futuros-ibex35 Then, a trader has to identify a leader in each sector. He needs to weigh capitalization of each company impacting the index. The higher capitalization of a company is the stronger impact it has on the index. In case with the IBEX 35, the companies are as follows: Banco Santander (banking and Spain’s undeniable leader) Acerinox (steel production), ACS (construction), Iberdrola (electric energy), Telefónica (telecommunications), Gamesa (machine building).

A trader needs to have in mind that the listing is revised. This means that he has to keep track of the changes and analyze them. Based on theanalysis, he takes a decision what new companies included in the listing he has to follow and what companies he has to quit keep tracking.

Actually, the IBEX 35 like other European indices mirrors the state of the European economy. This is why it’s important to analyze the Eurozone economy and political situation. And this is the reason why some investors don’t even spend time on the analysis of the index components and consider only the European currency.

Also, a trader has to use analysts’ forecasts. And if finds it difficult to do a comprehensive analysis, he can learn how to make a profit on forecasts on the IBEX 35.

Where and How to Profit on the IBEX 35

Ibex_35_SpainAlthough binary options on the IBEX 35 produce the highest yield,  they don’t require big investments, really affordable and ensure a fixed return.
To profit on binary options, a trader has to pinpoint whether the price of the index will rise or fall during a certain period of time, say, next 20 minutes.

The most renowned binary option broker is AnyOption. This is a top time-tested binary option broker regulated by the EU institutions including CONSOB, FCA, CySec etc.

So, I browse the broker’s website and choose the IBEX 35 index as an underlying asset. I set the time of expiration to 12:00 p.m. I type the investment amount and click on the PUT button because I expect the price to fall:

ibex

If the price of the option declines (even by a pip) during the set period, I will make an 80% profit.

After a little while, I get the following result:

ibex35

Profit on the stock indices like the IBEX 35! Use binary options, the most up-to-date trading instrument. By the way, AnyOption offers not only stock indices, but also stocks of the world’s top companies, commodities, and currencies. Don’t miss your chance to make money!

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