What is the US30? Why should you trade US30 on MT4
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US30 is the symbol for Dow Jones, one of the most important stock indexes of the US stock market. US30 is the top concern of stock investors around the world. If you are an index trader or simply a lover of the financial market, then the US30 is a stock index that you cannot ignore. Let’s learn about “what is the US30” and “why should you trade US30 on MT4” in the article below.
What is the US30 index?
US30 is known as Dow Jones Industrial Average – DJIA Index, created by Wall Street Journal Editor, Charles Dow. This index is used to track stocks of 30 companies in 9 market sectors, also known as the Top 30 largest public companies in the United States.
The Top 30 list is also constantly changing. When a business does not qualify in the Top 30, it is removed from the list, and the list is also immediately filled with another qualified company.
The US30 index accounted for 25% of the US stock market share, was actively traded, and continuously made great strides in the stock market.
The Dow Jones Industrial Average remains one of the most closely watched and frequently cited stock indexes as a measure of stock market performance. When we hear the phrase “the market is up (or down) for the day,” we usually refer to the Dow’s movement.
Understanding the role of US30 to investors
For investors, monitoring the movements of the US30 index is indispensable. It is an integral part of them to decide to invest in stocks on the stock market. The growth of the US30 index shows that the industry group in particular and the US economy, in general, are on the rise, which is a premise to create more excitement for investors to participate in the market pay more attention to the markets and stocks in the industry group, especially those that are included in the US30 calculation list.
For global stock investors, tracking the US30 index helps them partly assess the current state of the US economy, then make better investment decisions.
For traders in the foreign exchange market, the US30 index has a significant correlation with the US dollar value. The volatility of the US30 index also partly affects the price of the US dollar, thereby affecting the value of the US dollar. Since it affects the price of forex pairs in the market, monitoring the movements of the US30 index is also an integral part of forex traders’ trading strategies. Moreover, the US30 index is now the preferred trading tool of many traders. The US30 is no longer just an indicator that needs attention. It becomes an asset class that is directly traded in the market.
How to invest in US30?
Currently, most Forex trading platforms have a US30 index for traders to trade efficiently. In which, US30 can easily be invested in CFD contracts in MT4.
In addition, traders should also regularly update and monitor the movements of the US30 index online. Understanding the movement and direction of this stock index will help traders make the best decisions to invest or not.
Why should you trade US30 on MT4
MetaTrader 4 (MT4) is a trading software developed in 2005 by the software company MetaQuotes. MT4 software is commonly used for forex trading. However, now this software is also used in other financial markets: stocks, indices, cryptocurrencies, commodities, etc in the form of CFDs.
The MetaTrader 4 software became popular because you can easily customize it according to the trader’s wishes in color, chart type (bars, lines, candles…), or optionally adding technical indicators… Besides, when using MT4, you can also use the robot to trade automatically according to predefined parameters.
Some advantages of trading US30 on MT4:
- Free to use many basic features
- Several indicators, analysis tools
- Stable, fast operation and large processing volume
- Rarely occurs technical errors when trading
- Allows trading with many different accounts from different brokers
- Offers automated trading
- Create your own technical indicators
- Support demo account before entering actual trading
- Provide analytical tools, specialized tools of various levels from novice to professional
Up to now, the US30 index is still one of the decisive indicators of the US economy. It includes the leading businesses in the US, representing a variety of industries in the US. Because of this, US30 will remain one of the gold indices to invest in in the future.
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