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FTSE 100 Index

FTSE100 - Financial Times Stocks Exchange Market, the FTSE 100 index represents the Stock index of the top 1 hundred largest companies in the UK that are listed in the London Stock Exchange Market. The calculation of this index incorporates stocks that are determined quarterly. These stocks included in the FTSE 100 Index represent 80 % of the total market value of London Stock Exchange listed companies.

Because the FTSE 100 stock index tracks 100 firms the index will be more volatile as compared to an index such as the Germany DAX30 which only tracks 30 companies.

Strategy for Trading FTSE100 Index - FTSE 100 Index - Strategy for FX FTSE100 Index

The FTSE 100 Index Chart

The FTSE 100 Index chart is shown above. On the above exemplification the index is referred to as as UK100CASH . As a forex trader you want to find an online broker that provides this The FTSE 100 Index chart so that you as a trader can start to trade it. The example above is of FTSE100 Index on the MT4 FX and Indices Software Platform .

Other Info about FTSE 100 Index

Official Symbol - UKX:IND

The 100 component stocks that make up the FTSE 100 Index are picked from the top UK companies. The FTSE 100 share index is closely followed as a trading indicator of the prosperity and performance of the United Kingdom(UK) businesses. The constituents that make up this index are reviewed quarterly. The calculation of this index is a simple formula based on the market capitalization.

Strategy for Trading FTSE-100 Index

The FTSE 100 Index shows the relative movement of the top 1 hundred stocks in the UK. In general share value of the top a hundred companies will keep moving upwards, therefore this index will also over time keep going upward. Should a company not meet the required business growth targets, the company will be removed from the index and replaced with another company that has better business growth prospects.

As a currency trader wanting to trade this index, the general direction at any one time will be more bullish than bearish. This is because as long as the 100 companies being tracked are doing good business, then their stock value will keep moving up, and hence this index will also keep moving in an upwards trend.

As a stock index trader you want to be biased & keep buying as the stock index heads and moves upward. When the UK economy is doing well (most of the times it is performing well) this upwards trend is more likely to be ruling. A good strategy would be to buy the dips.

Contracts & Specifications

Margin Required Per 1 Lot - £ 70

Value per 1 Pip(Point) - £ 0.1

Note: Even though the general and overall trend is in general upwards, as a forex trader you have got to factor in the daily market volatility, on some days the stocks might oscillate or even retrace, the retracement may also be substantial sometimes and therefore as a forex trader you need to time your trade entry precisely using this strategy: Indices strategy and at the same time use the appropriate & suitable & appropriate & proper money management rules and guidelines just in case of more unexpected price volatility in the price trend. About money management rules tutorials: What's equity management and money management methods.

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