Market Indices are a great asset class for binary options. These provide traders with the opportunity to access multiple stocks, from multiple sectors, in one single trade.

This CAC 40 index is a French index representing the top 40 companies in France. It was started in 1987 and is one of the main contributing indices to the Euronext.

The companies included in the index are Accor, Air Liquide, Alcatel-Lucent, Alstom, ArcelorMittal, AXA, BNP Paribas, Bouygues, Capgemini, Carrefour, Crédit Agricole, Essilor, EDF, EADS, France Télécom, Groupe Danone, GDF Suez, LVMH, Lafarge, L'Oréal, Michelin, Natixis, Publicis, PPR, PSA Peugeot Citroën, Pernod Ricard, Renault, Suez Environnement, STMicroelectronics, Société Générale, Schneider Electric, Sanofi-Aventis, Saint-Gobain, Total, Technip, Unibail-Rodamco , Vivendi, Vinci, Veolia Environnement and Vallourec.

The biggest benefit of trading the CAC 40 is that it provides an opportunity to trade a variety of French firms, diversifying ones risk among 40 companies. Traders that have good knowledge of the French economy enjoy this index as the price fluctuations are largely driven by what goes on in France economy, as well as of course the fortunes of the contributing companies. The index correlates strongly with the Dow Jones Index in the US, demonstrating how linked up most of the economies of the world are.

Researching the CAC 40 requires dedication and access to many information sources. The great thing is that all the information is readily available through the news, company websites, signal providers and your broker.

The CAC 40 is a superb choice for traders who are new to binary options and are looking to begin specialization. It can be a stepping-stone to focusing on certain French companies, or can be part of a trading portfolio.

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