The CAC 40 is the main index of the French Stock Exchange, which based in Paris, as well as being one of the most important indices of the Euronext system. This index includes securities based on market capitalization, so its basket consists of 40 French shares among the 100 most capitalized companies listed on the Paris Stock Exchange.
The CAC 40 is comprised of French companies, however, 45% of the shares are in the hands of foreign investors, including US pension funds. It is precisely these pension funds that have been an interesting phenomenon over the last 20 years, following the privatization of many previously state-owned French companies.
Trading on the CAC 40 index can be done via the Plus500 platform.
Among the most important stocks included in the CAC 40 index is Sanofi, Total, BNP Paribas, LVMH, AXA, L’Oréal, Air Liquide, Danone, Airbus Group, Société Générale, Schneider Electric, VINCI, Vivendi, Saint Gobain, Michelin, Carrefour, Renault, Peugeot.
Trading on CAC 40
To trade the CAC 40 index, you need a trading platform that allows you to place buy or sell orders online. For CAC 40 CFDs, these refer to CAC40 futures with the nearest expiry date. The maturities of CAC40 futures, as well as other index futures, are in March, June, September, and December.
Below is a real-time chart of the CAC 40 CFDs provided by the broker, Plus500. As you can see, clicking “full details” will take you to the description page of this product.
Once the page opens, clicking “Future-Euronext” you will get to this page (link missing) where you can get more information about futures maturities and more. This is the official page of Future Euronext.
The technical details regarding the CAC 40 futures are important but equally important is to choose a trading platform that enjoys Consob authorization, which is responsive and easy to use even for those who are just beginning.
How do I trade on the CAC40 index?
With CFDs, such as those offered by the Plus500 trading platform, you can achieve economic results in proportion to the change in the price of futures that occurs in the market.