Euro Stoxx 50 definition

The Euro Stoxx 50 is a eurozone blue-chip stock index, tracking 50 large companies based in eurozone countries and weighted by free-float market capitalisation. It is a leading gauge of major eurozone equity performance.

The index draws its members from across eurozone markets such as France, Germany, the Netherlands, and Spain, and it spans sectors from consumer goods to industrials and finance. Larger companies carry more weight, and the line-up is reviewed on a regular schedule.

The Euro Stoxx 50 is often confused with the broader Stoxx Europe 600 or with pan-European indices that include non-eurozone markets such as the UK and Switzerland; by contrast, the Euro Stoxx 50 is limited to the eurozone. You can take exposure through an index CFD, which tracks the index level without owning the underlying shares.

Euro Stoxx 50 Example

You expect eurozone blue chips to gain, so you go long an index CFD that tracks the Euro Stoxx 50. Say the index is at 4,900.

The index moves to 4,945, a gain of 45 points. Your profit is the 45 points multiplied by the value per point of your contract.