CAC 40 Index
What is the CAC 40 Index?
The CAC is a benchmark for the French stock market index. The index is a capitalization-weighted measure of the 40 largest values in the 100 highest market caps on the Euronext Paris. It is seen as one of the key indices in Europe.
Uses of the CAC 40 Index
As with all indices, the CAC can be traded outright by going long (if you expect the market to go up), or short (if you expect the market to go down). Investors are also able to use this index to hedge their investment portfolio.
Risks of the CAC 40 Index
Like any index there are risks in trading the CAC. This risk involves economic events such as business cycles, macro and micro risks that may include a downturn in the economy such as a recession, poor company results or a fall in demand of products produced.