When trading via CFDs, you won’t take ownership of the underlying asset outright, but you’ll be speculating on the France 40 price rising or falling. As the benchmark index for the French market, the CAC 40® is one of the biggest European stock markets, hence it’s one of the most important national indices of the pan-European stock exchange group, Euronext. The CAC 40 represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the exchange. The index is similar to the Dow Jones Industrial Average (DJIA) in that it is the most commonly used index that represents the overall level and direction of the market in France.
Our analyst articles offer in-depth insights on the CAC index and its constituent stocks to inform your trading. You can trade via the spot price, which is closest to the underlying price with low spreads, but includes overnight fees. Alternatively, you can trade via futures contracts, which have wider spreads but no overnight fees.
How are companies selected to enter the CAC 40?
This compensation may impact how and where products appear on this site (including, for example, the order in which they appear), with exception for mortgage and home lending related products. SuperMoney strives to provide a wide array of offers for our users, but our offers do not represent all financial services companies or products. The CAC 40 is one of the main national indices of the cross-border European stock exchange, Euronext. Euronext was created in 2000 from the merger of the Amsterdam, Brussels, and Paris stock exchanges. In 2007, Euronext completed their agreed merger with the New York Stock Exchange (NYSE) Group, resulting in the formation of NYSE Euronext. Follow the live CAC 40 price with our interactive price chart, and keep up to date with the latest CAC 40 news and analysis.
Keep reading to find out more about the CAC40 index, its history, the 40 companies that constitute it and how to start trading it. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument.
- Follow the live CAC 40 price with our interactive price chart, and keep up to date with the latest CAC 40 news and analysis.
- Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
- For example, the company must be among France’s most important companies and must be domiciled in France.
- The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
In addition, a company limited by shares must fulfill certain criteria in order to be included in the CAC 40. For example, the company must be among France’s most important companies and must be domiciled in France. Furthermore, the company’s shares must be among the hundred most traded shares on the Paris stock exchange. The composition of the CAC 40 is reviewed quarterly by a commission and adjusted when necessary. The CAC 40, or CAC Index, is one of the world’s major stock indices and lists the 40 largest companies by market capitalization on the Euronext Paris, France’s largest stock exchange.
CAC 40 stands for Cotation Assistée en Continu, which translates in English to “continuous assisted trading”, and is used as a benchmark index for funds investing in the French stock market. The index also gives a general idea of the direction of the Euronext Paris, the largest stock exchange in France formerly known as the Paris Bourse. Exchange traded funds (ETFs) give traders access to a wide range of markets and assets through a single point of entry – an ETF share. With this option, you’ll trade on CAC 40®-linked ETFs using our CFD trading account to take a position. With us, you’ll trade on the CAC 40® price with our France 40 offering using a CFD trading account.
He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc.
IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
Trade individual CAC 40® stocks
The CAC 40 started with a base value of 1,000 in December 1987 and continued to operate on a total market capitalization system until 2003 when it was changed to a free float-adjusted market capitalization methodology. While most of the companies listed on the CAC 40® consist of France-based corporations, the index comprises of the most multinational stocks in comparison to other European markets. This means that you’ll find approximately 45% of the listed stocks owned by foreign investors. Some of the big names on the CAC 40® index include LVMH, L’Oreal, Hermès, TotalEnergies and Sanofi. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
The index serves as an underlying for structured products, funds, exchange traded funds, options and futures. An independent steering committee reviews the CAC 40 index composition quarterly. At each review date, the committee ranks companies listed on Euronext Paris according to free float market capitalization and share turnover in the previous year.
Trading the CAC 40
The CAC 40 index represents the 40 largest equities listed on the Euronext Paris in terms of liquidity, and includes such companies as L’Oreal, Renault, and Michelin. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Community reviews are used to determine product recommendation ratings, but these ratings are not influenced by partner compensation. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.
CAC 40®: what is it and how do you trade on it?
Using our derivative product, you’ll buy or sell CFDs to exchange the price difference of the France 40 between the opening and closing position. The history of the CAC 40 begins in 1987, when its base value of 1,000 was set on December 31. To get exposure, you’ll go long if you believe that the market price will rise or go short if you think that it’ll fall. CAC stands for ‘Cotation Assistée en Continu’ , loosely translated in English to ‘continuous assisted trading’. The name is derived from its value being updated every 15 seconds from Monday to Friday between 9am and 5.30pm (UTC+2). Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any financial institution.
BRIEF-Camden national corporation reports Q3 earnings per share $0.72 (CAC)
You can also get exposure by trading individual stocks that make up the CAC 40® index. These are the top 40 France-based companies, whereby you can speculate on their price rising and falling. Some of the companies that you’ll find include L’Oreal, Renault, Michelin and many others. The CAC 40® index is used as a benchmark of how the French market is performing. As one of the major stock indices in Europe, it’s a useful indicator for traders. The CAC 40 is the main French stock market index that features the most prominent businesses in the French economy.
We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve https://www.tradebot.online/ profits or losses similar to those examples. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. Euronext manages a variety of exchanges located in six different countries. The company operates the world’s most liquid exchange group, with nearly 4,000 listed companies, representing a total market capitalization of approximately $30.5 trillion.
Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. You can also trade CAC 40®-linked fund shares using our derivative product to take a position on price movements. When using CFDs, it’s better to do so on the index directly to trade the real price, which has lower spreads, higher liquidity, and longer market hours. The CAC 40® index is popular among traders because it’s one of the most liquid stock market indices in the world. This means that the market fluctuates very quickly, presenting you with the opportunity to buy and sell the index in the short term. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
France represents around a fifth of the total economy of Europe, so it is important for traders to follow the CAC 40 index to ascertain where the European economy is heading. Market capitalization refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as market cap, it is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to using sales or total asset figures. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate.