Trading the IBEX 35!

Analysing the IBEX 35 index price before investing

Trading the IBEX 35!

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As you undoubtedly already know Spain boasts several major stock markets. However here we will study the largest Spanish stock market, the Madrid stock market. It can be very beneficial to follow this stock exchange, or the shares quoted thereon, with the aim of speculating on its index or the related shares. Here therefore is some information you should know.
Trading the Ibex 35 index: in brief
  • The Ibex 35 is the benchmark index for the Spanish stock exchange in Madrid.
  • The Ibex 35 index is made up of the 35 Spanish companies with the highest market capitalisation
  • You can trade Ibex 35 stocks with a securities account
  • You can also trade the Ibex 35 with ETFs or CFDs
  • It is advisable to carry out a fundamental and technical analysis of the Ibex 35 before trading it.

Elements to consider before investing in this asset

Analysis N°1

Firstly, the time when the major European stock markets open is of course the time when this Spanish stock market Index is at its most volatile.

Analysis N°2

In the same way, all major economical publications on the Spanish economy and markets will have an influence on the volatility of this asset.

Analysis N°3

Of course, it will also be necessary to keep an eye on the press conferences organised by the European Central Bank as well as on any change in the ECB's monetary policy and in particular the evolution of interest rates.

Analysis N°4

Finally, as with any stock market index, the future volatility of the IBEX 35 index can be assessed by observing the results of the major companies that make up the index.

Analysing the IBEX 35 index price before investing
Trading the IBEX 35!
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Trading the IBEX 35!

What should I know before trading the Spanish IBEX 35 index?

The IBEX 35 is a stock market in the financial sector of Madrid that groups together 35 of the largest Spanish companies under one index name, in much the same way as the CAC40 groups together the 40 largest French companies.

By ‘large businesses’ we refer to those that boast the largest volume of transactions on the Madrid market.

The IBEX 35 was created in 1992 to reflect the general performance of the Spanish economy. For this it takes into account the individual performance of the major stock market capitalisations of the country.  This includes major names in Spanish industry such as the BBVA companies or the Santander Group from the banking sector, Iberdrola from energy and Telefonica from telecommunications.

We can therefore say with certainty that the IBEX 35 stock index is a strong indicator of the financial health of Spanish businesses. Of course, the composition of this stock index is not fixed as it is revised every six months by a specific committee composed of experts. It is the ‘Bolsas y Mercados Espanoles’ group that is responsible for this bi-annual revision.

Trading the IBEX 35!
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How can I trade and invest in the IBEX 35?

There are several ways of investing in the IBEX 35, each with its own advantages and disadvantages.


Investing in the IBEX 35 index using stocks and ETFs

There are two major ways of investing in the Ibex 35 with a stock market account such as a share account:


Trading the Ibex 35 with CFDs

Trading in CFDs (Contract For Difference) is a way of speculating on the rise or fall in the price of an asset, without actually owning it. This allows you to take advantage of short-term market movements, without having to invest the full amount of the asset.

To trade the Ibex 35 with CFDs, you need to take the following steps:

Trading the IBEX 35!
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What is the composition of the Ibex 35 index?

To take things a step further, we now invite you to find out in detail which companies make up the Spanish IBEX 35 index. Here is the list of companies listed on this index of the Madrid Stock Exchange, according to the sector in which they operate:


Useful information about the IBEX 35

Firstly we note that the rate of the IBEX 35 Index has strongly progressed since its initial quotation in 1992, particularly when compared to other European stock market indices.

The opening hours of the Madrid stock market should also be noted if you wish to benefit from the advantageous volatility offered by this asset. This particular financial market is open from Monday to Friday from 9 a.m. through to 5.30 p.m.

Concerning the composition of the IBEX 35 Index that we have already detailed, it is of course liable to change as it is revised twice a year, in June and December. A company only features in this index if it meets certain precise criteria. The 35 companies that feature in this index are however generally those that achieve the highest volumes of transactions in the preceding six months. 

It should also be remembered that the IBEX 35 Index is weighted by the stock market capitalisation. The companies with the largest stock market capital feature more strongly in this index than the lesser ones.

Trading the IBEX 35!
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How do you analyse the Ibex 35 index before trading it?

Analysing the Ibex 35 index is a crucial step before trading it. It helps you understand the market's strengths and weaknesses, identify trends and make informed trading decisions. Here are some factors to consider when analysing the IBEX 35 index:

Technical analysis of the IBEX 35:

Fundamental analysis of the IBEX 35:

Frequently Asked Questions

What instruments can be used to trade the Ibex 35?

There are a number of instruments that can be used to trade the Ibex 35, Spain's benchmark stock market index. You can invest in the index by buying stocks in the 35 companies that make it up, or via ETFs for greater diversification. To speculate on the rise or fall of the price, CFDs offer great flexibility but high risk. Futures allow you to commit to a long-term position, while options offer greater flexibility with the right to buy or sell.

What does the IBEX 35 name mean?

The name given to the Spanish stock market index Ibex 35 means 'Index Bursatil Espanol' or in English, Spanish Stock Exchange Index. The number 35 represents the 35 Spanish companies represented there. Bear in mind that this index is the main stock market index of the Spanish Stock Exchange and that it's made up of the 35 most liquid stocks in the country traded on the general index of the Madrid Stock Exchange.

What has been the historical evolution of the price of the Ibex 35 index?

Since its first listing on January 14th 1992, the Ibex 35 stock market index has risen significantly, particularly in comparison with other European indices. Strong economic growth in Spain between 2000 and 2007 enabled the index to reach a record high on November 8th 2007 to nearly 15,945.70 points.

When does the annual review of the composition of the Ibex 35 index take place?

The composition of the Spanish Ibex 35 stock market index is revised twice, in June and December of each year. Companies must meet a number of strict requirements to be a part of it. During each of the reviews carried out, it is most often the 35 companies that showed the highest volume of transactions that are selected to be part of this stock market index.

Trading the IBEX 35!
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