What is UK100 Strategy? - Course to Trade UK100 Index

Guide to Trading UK100 Indices - How to Trade UK100 Stock Index

The UK100 Stock Index Trade Chart

The UK100 Indices chart is displayed and illustrated above. On example above the index is named UK100CASH. As a trader you want to find an online broker that provides UK100 chart so that you as a trader can start to trade it. Example displayed and illustrated above is of UK100 Stock Index on MT4 Forex Platform Software.

Strategy for Trading UK100 Stock Index

The UK100 Stock Index shows relative movement of the top 100 stocks in UK. In general the share size of the top 100 companies will keep heading upwards, therefore this index also will over time keep heading upwards. Should a company not meet required business growth targets, the company will be removed from the index and replaced with an alternative company which has better business growth prospects.

As a trader wanting to trade this stock index, the over-all direction at any one particular time will be more likely bullish than bearish. This is because as long as the top 100 corporations being tracked & monitored are doing good in business, then their share value will keep moving and heading upwards, & threfore this index will also keep moving in an upward market trend.

As a stock index trader you want to be biased and keep on buying as the index heads & moves upward. When the UK economy is performing good (most of the times it's performing good) this upward trend is more than likely to be the one that is current. A good strategy for trading this stock index would be to buy the price dips.

During Economic Slow-Down and Recession

During the economic slowdown & recession times, corporations start reporting slower revenues, slower profits and lowers growth projections. It is due to and because of this reason that investors start to sell stocks of companies which are reporting and recording lower profits and therefore Indices tracking these specified stocks will also start to head and move downward.

Hence, during these times, the trends are much more likely to be going and moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the index which you are trading.

Contracts and Specifications

Margin Requirement for 1 Lot - £ 70

Value per Pip - £ 0.1

Note: Even though overall trend is generally move upwards, as a trader you've got to consider and factor on daily price volatility, on some of the days the Indices might move in a range or even retrace & retracement, the market retracement/correction move may also be a substantial one at times & hence as the trader you need to time your trade entry strictly when using this strategy: Stock strategy and at same time use the appropriate and proper/suitable money management guidelines/techniques just in case there's unexpected volatility in the market movement. About Index money management guidelines courses: What is Index equity management & Index equity management plan/system.

Study More Lessons and Topics:

Trade Forex Trading

What is UK100 Strategy? - Course to Trade UK100 Index

The UK100 Stock Index Trade Chart

Strategy for Trading UK100 Stock Index

During Economic Slow-Down and Recession

Contracts and Specifications