Trading the AEX Index

The Amsterdam Stock Exchange goes back to the 1600s. The Exchange was originally founded to trade shares of the Dutch East India Company, which was the first company to issue stock and become a publicly traded company. In September 2000, the Amsterdam Stock Exchange became Euronext Amsterdam, under the umbrella of the NYSE. The AEX Index is composed of 25 of the largest Dutch companies on the Euronext Amsterdam Exchange including Air France-KLM, Heineken, and Royal Dutch Shell. 

The companies included in the AEX Index are reviewed annually and changes are made according to which companies had the highest share turnover of the previous year. 

The AEX Index: What You Need to Know

  • The AEX index is a key indicator of the Euronext Amsterdam Exchange, as well as the Dutch economy as a whole. Since the Euronext Amsterdam is a relatively small exchange, trading around 150 companies, the index tends to be a more accurate measure of the market than other countries’ equivalent indices.    
  • The AEX is a market value-weighted (or capitalization-weighted) index, meaning that the stocks are weighted according to the market value of all the outstanding shares (share price multiplied by the number of outstanding shares). 
  • The AEX, like any other market index, reacts to world events such as natural disasters, wars, political unrest, and economic news. Part of being a smart trader is keeping an eye on current events and predicting how the market will respond. 
  • It is also important to track economic data from the Netherlands and the European Union, including unemployment rates, job creation, interest rates, GDP figures, and other economic benchmarks. Any economic data release will have some effect on the AEX Index, so it is important to perform a thorough analysis with the most up-to-date information. 

Anyone who wants to trade the AEX Index should carefully analyze the market conditions before trading. UFX strives to ensure that traders succeed, providing a variety of trading tips and tools to its account holders. The UFX support team can help you make an informed decision about trading the Amsterdam Exchange index.

Trade AEX