What is AUS 200 Index Trade System? - Learn AUS 200 Index

AUS 200 Chart

AUS 200 trading chart is shown & displayed above. On the above example this instrument is named AUS 200CAS. As a trader you want to find a broker that provides AUS 200 chart so that you can begin to trade it. The example That is illustrated above is that of AUS 200 Stock Index on MT4 FX Trading Software.

Trade System for Trading AUS 200 Stock Indices

AUS 200 Stock Indices will in general moves move up because shares prices always move upward over time. This Index in general moves upwards over long-term because Australian economy also shows strong growth backed by their mining sector which has great reserves of Gold & other valuable commodities.

As a trader wanting to trade this index, the stock index will move upward faster when the Australian economic indicators show accelerated economic growth.

As a trader you want to be biased & keep buying as the index moves upward. When Australian economy is doing well (most of the times it is doing well) this upwards trend is more than likely to be ruling. A good Indices trade strategy would be to keep buying the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits and hence Stock Indices tracking these specified stocks also will begin to move downward.

Therefore, during these times, trends are likely to be moving downwards & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.

Contract Specifications

Margin Requirement Per Lot - AUD 70

Value per Pips - AUD 0.1

Note: Even though general trend is generally move upwards, as a trader you have to consider & factor in daily market volatility, on some of the days the Indices might move in a range or even retrace & pull-back, the market retracement move might also be a substantial one at times & therefore as a trader you need to mark-time your trade entry precisely using this trade strategy: strategy & at same the time use proper equity money management guidelines just in case there is more unexpected volatility in the market. About stock indices equity money management rules courses: What's Index equity management and stock indices equity money management strategies.