The IBEX 35 (ESP35) – Spain’s Biggest Index

BY Chris Andreou

|March 5, 2021

The IBEX 35 (ESP35) index is Spain’s domestic and international benchmark for the BME Spanish Exchange. It is used as a barometer of the health of Spanish and European stock performance.

It measures the aggregate performance of the 35 most liquid stocks traded on the Spanish stock market.

Like the DAX30 and S&P 500, it is a price index that is weighted by capitalization and adjusted according to the free float of each company included in the index.

Why Trade IBEX 35

Traders who are interested in the euro currency and European stock performance often trade ESP35 because it offers a significant amount of intraday volatility. The ESP35 is known for its high volumes and steep day to day fluctuations which present many trading opportunities throughout the week.

The ESP35 is an ideal instrument for traders looking to profit from short-term price movements.

Which companies are included in the IBEX 35?

The IBEX 35 (SP35) includes the largest and most actively traded stocks in Spain, dominated by real estate, financial service companies, energy companies and consumer goods companies.

Some of the most notable index constituents include megabanks Santander and BBVA, airport operator Aena, the world’s number one operator in terms of traffic, and the utility companies Endesa and Iberdrola.

Constituent companies are reviewed regularly.

What factors influence the price of the IBEX 35?
Due to a high volume of income/export activities in today’s world, the ESP35 and most major indices react to factors that occur globally, such as economic news, political upheaval and even natural disasters.

Each of these factors will impact demand and supply related to import and export activities in the various sectors represented under the index, which in turn influences the price of the index as a whole.

To make informed trades on the ESP35, it’s important to stay on top of economic data coming out of Spain and Europe. You will also want to pay attention to trade agreements between Europe and the rest of the world.

Look out for figures on job creation, unemployment, GDP and of course interest rates out of the major European states.

How can I trade the IBEX 35 index?

The IBEX 35 is tradable as a single asset with TIOmarkets under the ticker ESP35.

What are the best trading conditions for the IBEX35?

As we’ve seen with the recent pandemic, the stock markets can be prone to large swings up or down based on economic turmoil, recovery and economic conditions.

Trade protection: Using risk tools like TIOshield (only available at TIOmarkets) can help to protect your trades against sudden breaking news that may swing the markets one or another.

TIOshield lets you cancel any trade within 1 hour to get all of your margin back.

Execution speeds: Slow order execution speeds can lead to a big difference between the price you see when you click to open a trade, and the actual price your order is opened at. This difference between prices is called “slippage”.

At TIOmarkets, we have some of the fastest execution speeds you can find, resulting in minimal slippage and more orders filled at the price you clicked.

Leverage: Normally, a large amount of starting capital is required to invest seriously in stocks and indices, because only a small amount of stocks is not likely to yield the kind of results most traders are seeking.

High leverage can greatly increase both the risk to your investment and the potential returns.

If you are comfortable with a high level of risk in return for higher potential gains, you may want to seek a leverage ratio that is commensurate to your investment goals.

Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & OFAC. The Company holds the right to alter the aforementioned list of countries at its own discretion.

Chris AndreouAuthor

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Trade responsibly: CFDs are complex instruments and come with a high risk of losing all your invested capital due to leverage.