What is the IBEX 35 index?
The IBEX 35 index or Spain 35 represents the shares price of 35 most liquid companies listed on the Stock Exchange Interconnection System which connects the four stock exchanges in Spain. The index was established in 1992 but it has been calculated since 1989 having a base value of 3,000. It is composed of large stocks from different industries, such as the financial sector, technology, medical, oil and gas, telecommunications, as well as other sectors. Companies can be included in the index based on the trading volume in Euros, the quality of their trading volume, the stability of the traded security and a minimum capitalisation compared to the index market cap.
However, it does not mean that the stocks included in the index are the largest stocks on the exchange because one of the primary selection criteria is the degree of liquidity. Also, changes in the stock price of companies with a larger market cap will have a higher impact on Spain 35 index value.
Because of the way this index is structured, it provides an overview about the state of the Spanish economy. Moreover, the IBEX 35 index is used as an underlying index for trading derivative instruments.
IBEX 35 index movements in the past
While some of the leading indices have a defined trending direction, one particularity with IBEX 35 is that it does not move in a strong trend as it can be seen from its price chart. Its price moves sideways for multiple years and during the last couple of years the index moved within the range from 8,400 up to nearly 11,100. The index broke its support level of 8,400 in early March 2020 and hit a multiyear low value of around 6,000 points within a week.
Aside from the price chart, we can also keep an eye on company-specific factors which influence individual stocks price as well as the overall economic activity. Try to watch and analyse the changes in macroeconomic indicators (GDP, interest rates, inflation, unemployment rate, etc.) for Spain and for the EU.
How to trade IBEX 35 index
There are a variety of ways to trade IBEX 35 and each of them has its specificality. Define a set of criteria to help you in selecting an adequate instrument according to your trading preferences. For that reason, you should pay close attention to attributes such as liquidity, costs, degree of complexity, profit-making potential (if you have little money to invest), safety and options to fund your account.
IBEX 35 trading can be performed with derivative instruments such as futures or options, mutual funds or ETFs. However, these instruments come with certain limitations. Yet, you can decide to trade IBEX 35 with technological advance methods, such as tokenised assets, that cover all aspects of a good trading instrument.
Tokenised assets offered by Dzengi.com are developed based on a blockchain technology. Developing digital assets such as tokens related to a real asset ensures that traders do not have to own the reference asset to make profits. Namely, they can trade IBEX 35 index tokens and still enjoy the same degree of profitability.
Moreover, trading tokenised assets with Dzengi.com can be executed with both fiat money or cryptocurrencies. Now you can open positions with crypto and eliminate the losses arising from the conversion of crypto to fiat money.
Not only you can trade with cryptocurrencies, but Dzengi.com trading platform also gives traders the chance to make larger profits with the same level of capital. Due to the leverage of 1:100 offered by the platform, you can open larger positions with the capital at your disposal and this leverage translates into a margin of 1 per cent. For example, if you decide to trade tokenised IBEX 35 index by opening position worth $20,000 (£ 15,841) you will need just 1 per cent of your capital or $200 (£158.4).
Tokenised IBEX 35 trading guide
The process for trading tokenised IBEX 35 index on Dzengi.com is done in a few simple steps, which are:
- Step 1: Provide the details required with the two-factor authentication security to open your trading account at Dzengi.com platform;
- Step 2: If you own crypto you can choose to deposit Bitcoin or Ether to your account or you can add fiat money.
- Step 3: Using the 1 per cent margin offered by Dzengi.com estimate the value of the positions you want to open.
- Step 4: Traders can speculate on upward price movement or price decrease. Accordingly, they decide to enter long or short positions with tokenised assets.
- Step 5: Buy and sell order will be firstly balanced among the traders on Dzengi.com platform and afterwards the leftover orders are going to be hedged with Capital.com, LMAX Digital or with Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- Step 6: Decide when to liquidate your trading positions. Keep in mind that If you open positions with crypto, you can choose to receive crypto when you close your positions.
Why trade tokenised IBEX 30 index with Dzengi.com
IBEX 35 trading at Dzengi.com tokenised securities exchange has a number of advantages. Tokenised securities are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
- One-stop crypto trading platform
Trade tokenised IBEX 35 with Bitcoin or Ethereum. Benefit from the commodity's price movements without turning your crypto assets into fiat.
- Tight spreads
Trade tokenised Spain 35 with a tight market spread, benefit from maker rebates and competitive taker fees.
- Leverage
Experienced traders can trade the world's top markets, like Spain 35 index, with up to 1:100 leverage.
- Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
- Instant order execution
We have a scalable and low latency order management system, which can execute 50 million trades per second.
- Safe regulation
Dzengi.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.
