The Spanish Stock Exchange, also known as Bolsa de Madrid, is home to the Spanish benchmark stock market index, known as SPA35 or Ibex 35. The SPA35 is composed of 35 of the largest and most liquid Spanish stocks, representing various sectors of the Spanish economy. It is a price-weighted index, meaning that companies with higher stock prices have a greater impact on the index's value. The index is calculated in real-time and disseminated every minute during the trading day. As with any investment, there are risks associated with investing in the index, including potential losses due to market fluctuations.
One way to invest in the SPA35 is through Contracts for Difference (CFDs), which allow investors to speculate on the price movement of the index without owning the underlying asset. CFDs are a popular derivative product that can be traded on leverage, meaning that investors can amplify potential profits or losses. However, it is important to note that CFDs are a complex financial product and are not suitable for all investors.
The best time to trade the SPA35 index CFD is during its main trading hours, which coincide with the opening hours of the Spanish Stock Exchange. The market opens at 9:00 and closes at 17:30 CET (Central European Time). The busiest trading times are usually during the first hour of trading and the last hour of trading, as traders and investors react to news and economic data releases.
It is interesting to note that the SPA35 has seen significant volatility over the years, particularly during times of economic uncertainty or political instability. For example, during the 2008 financial crisis, the index lost more than half of its value in just over a year. Additionally, in October 2017, the Spanish government's response to Catalonia's bid for independence caused the index to drop significantly in just a few days.