IBEX35 vs Continuous Market: Which is the real opportunity for traders?

The structure you need to understand before trading

The Spanish continuous market is not just an index; it is a complete trading ecosystem that integrates four main exchanges under a single electronic platform called SIBE (Sistema de Interconexión Bursátil Español). Since 1989, this unified system allows traders to access more than 125 listed companies with guaranteed liquidity and real-time data.

Bolsas y Mercados Españoles (BME), the entity that manages the entire financial operation of the country, acts as the guardian of this market. What many beginners do not know is that the Spanish continuous market operates with specific hours: it opens at 09:00 and closes at 17:30, with 30-minute opening auctions and 5-minute closing auctions. This mechanism automatically orders trades when there is a counterparty, or holds them in the order book until execution.

The real advantage: controlled volatility with real opportunities

Unlike more turbulent markets, the Spanish continuous market is characterized by relatively moderate volatility, making it an interesting space for different trader profiles. For cautious operators, this means fewer surprises; for aggressive traders, it means identifiable inflection points.

History proves it: during 2010, the IBEX35 — the benchmark index of the market — rose more than 14%, while in March 2020 it recorded a 14% decline. These movements, although significant, occur within a controlled range that has fluctuated between 6,000 and 12,000 points since 2009.

Three segments, endless possibilities

The Spanish continuous market is not monolithic. It is divided into three clearly differentiated segments:

Main Market: intended for large, national and international companies. It is where heavyweight companies like Telefónica and Ferrovial are listed, with broad liquidity and worldwide recognition.

LATIBEX: a specialized market for Latin American companies, created in 1999. Currently, 19 companies from the region operate with market caps over 300 million euros. It is the perfect bridge for traders seeking exposure to Latin America from a regulated Spanish platform.

BME Growth (antes MAB): the segment for expanding SMEs, created in 2006. Here, 134 growing companies are listed, including real estate investment trusts (REIT). It is the space of opportunities for those looking for stocks with higher growth potential but lower liquidity.

The IBEX35: A different indicator that demands strategy

The IBEX35 is composed of the 35 most liquid stocks on the Madrid Stock Exchange. Although densely populated by financial services, communications, and utilities companies, its behavior is not conventional.

Over the last three decades, it has experienced clear cycles: reaching 12,968 points in early 2000, suffering the dot-com bubble crash, recovering dynamically between 2003-2007 during the real estate boom, and then facing the European debt crisis of 2011 with particular intensity. Since then, it has remained sideways precisely because it has low exposure to technology and growth sectors.

To operate the IBEX35 effectively, experienced traders know that:

• The index behaves differently from other global markets
• Low volatility periods precede sharp movements
• Constant strategy adaptation is essential
• 5- and 15-minute charts reveal inflection points
• Lateral movement offers opportunities if you know where to look

Practical cases: companies that generate opportunities

Telefónica is one of the largest telecom operators in the world by market capitalization. Based in Madrid, it offers mobile and fixed network services in Europe and Latin America. In recent years, it has cut costs to focus on Spain, Brazil, Germany, and the UK. Its long-term chart shows stagnation until November 2020, from which point it exhibits a moderate upward trend.

Ferrovial operates critical infrastructure: highways, airports, municipal services. Its exposure to the growing wave of infrastructure privatization in the United States positions it as a potential beneficiary of that megatrend. Here, traders seek to capitalize on structural changes, not daily fluctuations.

The ETF market: diversification without complexity

With over 15 years of experience, the Spanish stock exchange offers an ETF ecosystem that combines fund diversification with trading flexibility. Investors can access multiple asset classes with a single transaction, at competitive prices and simple execution.

How the continuous market differs from other systems

The SIBE allowed the four Spanish exchanges to unify their orders through terminals connected to a common mainframe. The result: real-time information, immediate data distribution, and instant execution. This is known as a real-time order market.

Occasionally, individual stocks may experience volatility auctions during the trading session (durando cinco minutos), triggered by static or dynamic ranges. This mechanism protects against uncontrolled movements.

The importance of understanding real risks

There is a concrete possibility of losing part or all of your operating capital. The Spanish continuous market, despite its relative stability, is exposed to macroeconomic factors, geopolitical news, and changes in investor confidence.

Before trading, you must objectively assess your risk tolerance, your actual trading goals, and your previous experience. The continuous market is not a casino; it is a regulated market supervised by the Comisión Nacional del Mercado de Valores (CNMV), but that does not eliminate risks, only channels them.

Key questions every trader must answer

What is my investment horizon? Am I looking for intraday gains based on volatility or medium-term exposure to fundamental companies?

What is my risk capital? Only trade with money you can completely lose without affecting your life.

Do I understand the auction mechanism? Knowing when orders are automatically executed and when they remain in the book is fundamental.

Have I analyzed historical charts? The IBEX35 tends to move sideways; seeking extreme volatility here is guaranteed frustration.

The Spanish continuous market offers real opportunities for prepared traders. The key is to understand its unique nature: not as volatile as some expect, nor as predictable as others imagine.