Question 1

What is the best way to trade the TSX 60?

Accepted Answer

Because the TSX 60 represents some of the largest companies in Canada it tends to be fairly stable in its price movements. That allows for good reads on support and resistance levels, which can be used as entry and exits points for traders. The index tends to respond to investor sentiment and economic data such as Canada’s GDP, inflation, interest rates, and employment data. Traders can often find good trades around these economic data releases, or by following the news cycle to determine whether investor sentiment is improving or deteriorating.

Question 2

Should I trade the TSX 60 if I’m not Canadian?

Accepted Answer

The Canadian markets are very accessible for traders all across the globe, particularly if you trade the TSX 60 using CFDs at AvaTrade. This avoids the complications you might encounter in trying to enact a direct investment in the TSX 60 or any of its component stocks. As one of countries with the greatest natural resources, Canada’s stock exchanges are filled with mining and oil companies. This can make trading the TSX 60 a good surrogate for trading in commodities such as oil, gold, and other metals.

Question 3

Why is the TSX 60 a good trading opportunity?

Accepted Answer

It's well known that Canada has some of the greatest natural resource reserves in the world. That makes its mining industry a good place for investors. There are a number of stock exchanges in Canada, but the most popular by far is the Toronto Stock Exchange (TSX). It is the eighth largest exchange in the world by market capitalization, and has excellent daily liquidity. Given the huge natural resource reserves in Canada the TSX has more mining companies than any other exchange, making it the most important exchange for any industry focused on natural resources and hard commodities. Traders can gain exposure to the TSX 60 through the CFDs offered at AvaTrade.

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