News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
What is the IBEX 35 Index

What is the IBEX 35 Index

Daniela Sabin Hathorn, Analyst
Advertisement

The IBEX 35 is an index the comprises the 35 most liquid companies in the Spanish Interconnected Exchange System, which integrates Spain’s four exchanges: Madrid, Barcelona, Bilbao, and Valencia. Technically it is a price index, weighted by capitalization and adjusted by the floating capital of each company in the index.

Does this mean that the companies that comprise the index are the biggest in Spain? Not necessarily, as the companies are not picked basis their size, despite there being a minimum market capitalization requirement in order to be included in the IBEX 35. Many large companies that trade publicly and in large quantities are included in the index, but this is based on the liquidity of their shares and not their size.

How is this liquidity measured?

The Technical Advisory Committee takes into account for each company the effective volume traded on the main market, provided that this effective volume meets quality guarantees in its execution.

How often are companies removed/added from the index?

Every six months the committee reviews the 35 most liquid companies in the Spanish stock market, and there is no minimum or maximum number of changes to be made with respect to the previous period, resulting in no changes or as many changes as appropriate in order to respect the liquidity measurement. In the history of the index, up to 5 values have been changed in one revision, and on other occasions, no change has been made.

Sector weightings

What is the IBEX 35 Index

Among the criteria used for a company to form part of the IBEX 35index, the economic sector to which the company belongs is not taken into account under any circumstances, as the IBEX 35 index does not require any specific sectorial diversification in its composition.

The 10 companies with the largest weighting on the IBEX 35

  • Iberdrola (IBE) – 17.91%
  • Indústria de Diseño Textil (ITX) - 11.26%
  • Banco Santander (SAN) – 11.03%
  • Banco Bilbao Vizcaya Argentaria (BBVA) – 6.43%
  • Amadeus IT Group SA (AMS) – 5.82%
  • Telefónica (TEF) – 4.32%
  • Cellnex Telecom SA (CLNX) – 4.29%
  • Aena SME SA (AENA) – 3.80%
  • Ferrovial SA (FER) – 3.62%
  • CaixaBank SA (CABK) – 3.13%

Data as of January 11th 2021

The weightings of its top 10 listings mean the index is more exposed to its domestic market than other indices, with finance and utilities making up 50% of the benchmark, which means the performance of the IBEX 35 is largely a function of how banks and utilities are performing in general across Europe.

History of the IBEX 35

The IBEX began trading on January 14, 1992, but historical data was calculated as of January 5, 1987. The day chosen as the basis was December 29, 1989, when the base value was established at 3000. Since then its value has fluctuated non-stop, reaching a maximum of 15,945 in November 2007 and a minimum of 1,873 points in October 1992. If we had bought at the minimum and sold at the maximum our investment would have a multiple of 8.5.

How to trade the IBEX 35

Trading the IBEX 35 is very similar to trading other financial assets and there should be a consistent strategy throughout.

If you trade with IG, you can find the IBEX in the indices dropdown under the name “Spain 35”

Here’s our top IBEX trading strategies and tips:

  • Decide your entry level, exit point and stop loss. Note: Traders should be aware of risks to stop loss orders. They are vulnerable to short-term fluctuations in price that could activate the stop price. All stop orders will be filled, though there is no guarantee of the price. What’s more, if your level is reached, your stop order cannot be filled at a better price than your stop, only the same price or worse, and this could impact your original risk-reward ratio. If you are using technical analysis to decide levels to trade the IBEX, make sure you have rigorously tested your analysis before trading and that you are comfortable entering the position.
  • Entering trades before major data releases is risky and should be avoided. It is better to let the ‘dust settle’ after a release and miss a small part of the move than to gamble that the data release will be good or bad for the market.
  • Do not place a trade - either a long or a short - without placing a firm stop loss.
  • Before entering a trade, decide your risk-reward; for example, risk one unit to make three units. See our traits of successful traders research for more detail as to why.
  • Do not place a large percentage of your capital on any one trade, however strongly you feel about it. At DailyFX we suggest limiting your exposure to less than 5% risk on all open trades.
  • Select your timeframe for the trade, such as one hour, one day, one week or several weeks.
  • Make sure that you are in a ‘good place’ before trading the IBEX. Do not trade when you are tired, distracted, emotional or bored.
  • Record all your trades comprehensively, making sure that you note why you entered the trade, how you felt, how the trade played out and the final result. The more you record your trades and their outcomes, the better prepared you will be for your next trade.
  • Trading is like a full-time job and should be treated like one. Constantly study and update your trading technique.
  • There are a variety of financial products available to trade. Traders should use a practice account test run various products to find where their strengths and weaknesses lie.
  • And remember to enjoy it!

If you wish to practice your trading strategies you can open an IG Demo account. To stay up to date with live price movements visit ourDAX 30 page, and download our free quarterly Equities Forecast to better understand future trends in the market.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES