Trade CAC 40 with LHFX
The CAC 40 is France's premier stock market index, comprising the 40 largest companies by market capitalization on Euronext Paris. It is heavily influenced by luxury goods companies (LVMH, Hermes), banking, and energy sectors. ECB policy, French economic data, and global luxury demand are primary drivers.
FRA40 Price Chart
Live FRA40 Spread
Real-time market pricing
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Spreads are variable and sourced from the live market. Values shown are real-time.
Trading Conditions
Max Leverage
1:200
Commission
$3 per side
Platform
MetaTrader 5 + LHFX Trade
Execution
STP/ECN
Trading Hours
Sunday 5:00 PM - Friday 5:00 PM ET
About CAC 40
The CAC 40 (FRA40) is France's benchmark equity index, tracking 40 of the largest and most liquid companies on Euronext Paris by free-float-adjusted market capitalisation. The index launched in December 1987 with a base level of 1,000 and is reviewed quarterly by an independent scientific council. It is the primary measure of French large-cap equity performance and one of the most widely traded European indices globally.
FRA40 is the most luxury-exposed major equity benchmark in the world. LVMH, Hermes, Kering, and L'Oreal together can account for over 25% of total index weight in periods when their share prices outperform. Add Pernod Ricard (premium spirits) and the consumer-discretionary luxury cluster pushes above 30%. No other large-cap index has this kind of concentration in one consumer sub-sector, which gives FRA40 a distinctive macro signature.
Other major weights include TotalEnergies (oil and gas), Sanofi (pharmaceuticals), Airbus (aerospace), Schneider Electric (industrials), Air Liquide (industrial gases), BNP Paribas and Societe Generale (banking), and Stellantis (autos via the FCA-PSA merger). Energy, financials, and industrials together typically account for another 35 to 40% of index weight.
The luxury concentration creates significant sensitivity to Chinese consumer demand. Chinese shoppers buy a large share of global LVMH, Hermes, and Kering output, both inside China and through tourism to Europe. A China consumer slowdown can drag FRA40 underperforming GER30 and EUSTX50 for months even when broader Eurozone fundamentals are stable.
At LHFX you trade FRA40 as a CFD with leverage up to 1:200 and $3 per side commission. You never own the underlying stocks and do not receive dividends as cash. A dividend adjustment applies on ex-dividend dates of constituents. Settlement is in USD. Underlying Euronext Paris cash hours are 09:00 to 17:30 CET (03:00 to 11:30 ET). LHFX CFD pricing runs close to 24 hours from Sunday 17:00 ET through Friday 17:00 ET.
What moves FRA40
- 01China luxury demand. LVMH, Hermes, Kering, and L'Oreal earn a disproportionate share of revenue from Chinese consumers, both in mainland China and via tourism. China retail sales releases, luxury-tax adjustments, and Chinese New Year travel data move FRA40 the same morning.
- 02European Central Bank policy. ECB rate decisions, the quarterly Monetary Policy Statement, and Lagarde press conferences move FRA40 with the rest of Eurozone equities. The French banking weight (BNP Paribas, Societe Generale, Credit Agricole) amplifies the rate-sensitivity leg.
- 03French political stability. Presidential and legislative elections, budget standoffs (the 2024 to 2025 budget crisis produced a same-day gap), credit-rating actions on French sovereign debt, and prime-ministerial reshuffles produce single-session moves on FRA40 that other Eurozone indices avoid.
- 04Oil prices and TotalEnergies. TotalEnergies is one of the largest single FRA40 constituents. A sharp crude-oil move (OPEC+ decisions, supply shocks, US strategic-reserve announcements) translates directly into FRA40 direction.
- 05Aerospace and defence cycle. Airbus is a high-weight constituent. Airline order announcements, Boeing's competitive position, defence-spending news from EU member states, and Iran-related geopolitical risk all feed into FRA40 through the aerospace leg.
How to trade FRA40 at LHFX
Open an LHFX account and fund it. Minimum deposit is $10. Open MetaTrader 5 or the LHFX Trade web platform, search for FRA40, and add it to your Market Watch. Spreads are tightest during the European cash session (03:00 to 11:30 ET). Commission is a flat $3 per side and leverage runs up to 1:200.
FRA40 daily volatility is moderate, typically 0.6 to 1.2%. Days with 2 to 3% moves usually coincide with ECB shocks, major luxury-sector earnings (LVMH and Hermes typically report in late January, April, July, and October), French political surprises, or sharp China consumer-data releases.
Size your position to your account, not to the leverage cap. A 2% adverse index move should cost no more than 2% of your account on a reasonable position. Watch Chinese consumer data and luxury-sector news flow. A China slowdown is the single largest non-EU driver of FRA40 underperformance against GER30 and EUSTX50.
Set a stop loss before entry. FRA40 can move 80 to 120 points in minutes during ECB pressers or after a major LVMH earnings release.
Worked example. On a $1,000 account at CAC 7,500, opening 0.05 lots requires roughly $19 in margin at 1:200 (verify the exact contract specification in MT5 before sizing). A 2% adverse move (150 points) on that position costs roughly $75, or 7.5% of your account. Size down to 0.02 lots for a 3% risk budget, or set a tighter stop. Run that math on every entry before you click buy.
Risks specific to FRA40
FRA40 carries two specific risks above general index volatility. First, luxury concentration risk. LVMH, Hermes, Kering, and L'Oreal together can be over 25% of the index. A China consumer slowdown or a single weak luxury earnings cycle can drag FRA40 underperforming GER30 and EUSTX50 for months at a time. You can be right on Europe and still lose on FRA40 because the luxury leg breaks down.
Second, French political risk. France has a tradition of confidence votes, prime-ministerial changes, and budget standoffs that produce same-session FRA40 gaps. The 2024 to 2025 budget crisis is a recent reminder. Credit-rating actions on French sovereign debt have also produced sharp moves.
Mitigations. Start at effective leverage of 1:15 or below until you have run a strategy through a full LVMH earnings cycle. Set a stop loss on every position. Size down ahead of ECB meetings, French political events on the official calendar, and the four LVMH and Hermes earnings dates each year. Watch China consumer confidence releases as a leading indicator for FRA40 direction.
Frequently asked questions about FRA40
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