With an extraordinary increase in the Paris stock exchange since the start of 2021, the CAC 40 becomes the best investment option. This ongoing increase can be explained by several factors that we will discuss in our article. Also, we explain everything there is to know about this stock market.
How to invest in the CAC 40?
The CAC 40 represents a grouping of the most influential companies in France. It is therefore not possible to invest in the CAC 40 as an entity in its own right, but it is possible to do so by targeting the stocks it encompasses. This is because with the help of a good forex broker it is easy to use an option called CFDs. The latter consists of betting on the rise or fall of the value of all the best-rated companies in the country.
Unlike investing by share, buying a CFD (Contract for Difference) does not confer shares in a stock exchange company. However, it allows speculation on the change in the CAC 40 index.
When to invest in the CAC 40?
Like any investment in the stock market, depositing your money with an online broker must be done in accordance with certain rules. A safety margin not only secures your money, but also prevents it from being lost.
There are investment strategies specially tailored for the CAC 40. As the latter does not allow the acquisition of shares strictly speaking, it makes speculation easier to manage. The best times of the day to invest in these volatile shares are as follows:
- In the morning: the most ambitious traders carefully watch for the opening of the market. The best time to invest in the CAC 40 is undoubtedly around 9 a.m.
- Take advantage of the foreign market: mostly American, the best time to take advantage of this foreign opening is around 3 p.m.
- Midday: For investors who don’t want to take risk, the safest time to deposit money is midday.
In order to succeed in your stock market investment, nothing beats carefully following the evolution of the market using real-time charts. In addition to this, there are several global political and financial factors to consider. It is advisable to follow the media religiously to make the best deposits.