Here is a comprehensive guide to everything you need to know about trading the FTSE MIB, Italy’s leading stock index. In addition, we present you with a list of the best FTSE MIB CFD brokers in which we only include regulated and safe brokers.
Brokers to invest in FTSE MIB
FITSE MIB or Italia 40
Popularly known as the Italia 40 index or also as the MIB, the FTSE MIB is the main stock market index of the Italian stock market or “Borsa Italiana” and the acronym MIB stands for “Milano Indice di Borsa“.
It is a very useful stock market index for measuring the competitiveness of the main sectors in this Alpine country, as it includes the share price of the 40 largest companies in Italy.
History of the FTSE MIB
The Borsa di Commercio di Milano was established in January 1808 and was publicly owned until 1998, when it was privatised. Nine years later it became part of the London Stock Exchange Group.
The current name FTSE MIB was adopted in 2009 at the same time as the number of stocks included in this index was increased from 30 to 40. As a financial instrument, the MIB is an interesting stock index due to its relatively frequent movements, which allows for short or long term trading.
FTSE MIB historical data
The initial value of the FTSE MIB on its first day of trading was 10,644 points and since then the highest price recorded was in March 2000 with 50,108.56 points and the lowest in July 2012 with 12,362.50 points.
How is the FTSE MIB calculated?
As mentioned above, the value of the MIB is calculated on the basis of the share price of the top 40 Italian companies. This list of companies includes companies from all sectors.
It is a weighted index, which means that a floating factor is used in its calculation formula so that the weight of each company’s shares is proportional to a number of factors.
In other words, the share price of a smaller company will have less weight than that of a larger one. Other weighted stock market indices are the IBEX35 or the S&P 500.
The value of the MIB is calculated in Euros, the official currency in Italy, and during the trading hours of the Borsa Italiana (more information on trading hours below).
MIB trading hours
The trading hours (i.e. when the value of the index may vary) coincide, of course, with the opening hours of the Borsa Italiana and are between 9:00 and 17:30 (GMT+01:00) from Monday to Friday.
Some online index brokers will allow trading of stock indices at slightly different times such as from 8:30 to 17:00 and always from Monday to Friday.
FTSE MIB online trading
Traditional investment methods do not allow for FTSE MIB trading, as stock indices were devised as mere measurement tools. However, the relatively recent emergence of CFD brokers has made it possible to trade indices as if they were any other financial instrument.
Therefore, by trading the FTSE we are able to make investments based on the overall Italian financial market rather than just individual companies. The main advantages of trading the MIB are its good liquidity, competitive spreads and long trading sessions 5 days a week.
As we have already anticipated, the most popular way to trade FTSE MIB is through the use of CFDs or contracts for difference. This is a contract signed between the broker and the trader in which the trader will try to predict the difference between the bid and ask price in order to generate profits.
It is worth mentioning that CFDs are complex instruments and their use carries risks of capital loss. Moreover, if leverage is used, this risk can be much higher. This is why many international financial institutions advise against CFDs.
If you nevertheless wish to trade FTSE MIB CFDs, you should make sure that you have the necessary knowledge. Another fundamental rule of CFD trading is not to invest more than you can afford to lose if things don’t work out as expected.
FTSE MIB companies
List of companies included in the FTSE MIB as of today:
|A2a||Atlantia||Azimut Holding||Banca Generali|
|Banca Mediolanum||Bpm Bank||Bper Banca||Brembo|
|Buzzi Unicem||Campari||Cnh Industrial||Enel|
|Eni||Exor||Ferrari||Fiat Chrysler Automobiles|
|Moncler||Pirelli & C||Poste Italiane||Prysmian|
|Stmicroelectronics||Telecom Italia||Tenaris||Terna – Rete Elettrica Nazionale|
Other Italian stock indices
The Italia 40 or MIB is the main and also the most popular stock market index in Italy, but that does not mean that there are no other indices in Italy.
We can mention the following:
- FTSE Italia All Share
- FTSE IT Mid Cap
- FTSE IT Small Cap
- FTSE MIB TR EUR
So much for our Italy 40 or MIB trading guide. If you would like to try your luck with trading this stock index, we recommend that you do so with one of the online brokers for Italia 40 listed on this page. They are all regulated brokers that operate according to the highest standards of quality and security.
- Investing in stock indices
- Investing in Ibex35
- Investing in Dow Jones