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CAC 40: Trading on the French Stock Market Index

finance market graph

France has exhibited a continuous growth rate in the last few years. What was a country sanctioned by strict laws then, is now enjoying a more free finance industry open to companies operating globally, as well as many well-known foreign brands. This includes firms that are the most actively listed equities traded on the NYSE Euronext Paris, recognized worldwide and are representative of various sectors.

Multinational investors, such as American, British and Japanese, make up most of the significant shareholders, employing almost 63% of their workers as non-residents of France. They are the 40 highly-valued among 100 companies with the highest monetary capitalization, a contributing factor to the CAC 40 as one of the largest European indices available to traders.


Background of CAC 40

Trading this began in 1987, which includes the major industries from the financial, industrial and pharmaceutical services. The index is a free floating, modified capitalization-weighted, which is calculated based on the total fiscal value of the outstanding shares of company stocks.

As a benchmark in France, it provides a diverse assortment of French firms and organizations that contribute to the area’s economy. Another advantage is the availability of information accessible to traders as data are easily on hand from the top companies highlighted in the business exchange environment.

A review is made on a quarterly basis, specifically on the third Friday of March, June, September and December. A self-regulating board, the Index Steering Committee, oversees these reviews and determines which companies deserve inclusion on the list and which ones can be taken away. According to the ranking of 100 companies in the Euronext Paris in terms of free float market cap and share turnover in the last 12 months, the top 40 is selected. Changes are effective two weeks after the review.


How to invest the CAC 40 in binary options

One key responsibility of a binary options trader is to be mindful of the changes in the index components exerting a heavy influence on the overall price. Aside from this, the relative strength of the French economy is also a factor that impacts the price of the CAC 40. It is noteworthy to state that the stability is directly link to the general European economy.

Trading this offers an opportunity to select one from only two options: determining if the price will rise or fall in a given time frame.  Entering a trade with this index, a CALL or PUT option on the asset is selected. Predicting the correct trend results to a huge payout ranging between 65%-75%; even so, speculations that went the other way can still return a sizeable percentage of your investment amount.

Hours of operation

It is important to note the opening hours of the US Stock Exchange. It is operational at 3:30 P.M. French time. Trends in the American business arena often cause an abrupt movement. It may only be minimal, as there are business tools that can project trends in advance; however, it is advisable to be informed of this piece of information before the actual buying and selling commence.

Earn significant returns by trading CAC binaries

Binary Options is a growing phenomenon that has recently hit the finance industry scene. While considered as a relatively young type of trading, it has generated a loyal following because of its simplicity and huge payout. France is a growing financial hub, and with it an ever-expanding base of traders that have experienced positive financial returns.

Regardless of your skill level, whether you are a novice or a high-caliber tradesman, it is the perfect venue where you can apply your binary options strategy. As there is free access to a diverse investment portfolio, it is a solid asset that also provides opportunity to be acquainted with the financial industries of the European Union. To experience significant returns with the CAC 40 in binary options, start trading with us today!

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