UKX100 Index
UKX100 - Financial Times Stock Exchange, the UKX100 stock index represents the Indices of top 100 largest firms in UK which are illustrated in London Stocks Market. The calculation of this index incorporates stocks that are determined quarterly. These stocks included in UKX100 Stock Index represent 80% of total market value of London Stock Exchange displayed firms.
Because the UKX100 Stock Index tracks 100 corporations the stock index will be more volatile as compared to an index such as Germany DAX30 which only tracks 30 corporations.
UKX100 Trading Chart
UKX100 chart is displayed & shown above. On above example the index is named UKX 100CASH. As a trader you want to find an online broker that provides UKX100 chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of UKX100 Stock Index on MetaTrader 4.
Other Info about UKX100 Stock Index
Official Stock Index Symbol - UKX:IND
The 100 constituent stocks that constitute UKX100 Stock Index are selected from top performing United Kingdom corporations. The UKX100 share index is closely followed as an indicator of the prosperity of UK businesses. The constituents that make up this stock index are reviewed quarterly. The calculation of this index is a simple formula based on market capitalization.
Trading Strategy for Trading UKX100 Index
UKX100 Stock Index represents relative trend movement of top 100 stocks in UK. In general the share value of top 100 corporations will keep moving upwards, hence this stock index also will over time keep heading upwards. Should a company not meet the required growth targets, the company will be removed from the & replaced with an alternative company that has better growth prospects.
As a trader wanting to trade this Index, the general market direction at any given time will be more bullish than bearish. This is because as long as the 100 corporations being tracked are doing good business, then their share value will keep heading upwards, and hence this stock index will also keep heading in an upward trend.
As a trader you want to be biased and keep buying as the index moves upwards. When UK economy is performing good (most times it's performing good) this upwards trend is more likely to be in place. A good stock index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down & recession times, corporations begin to report lower profits and lower growth prospect. It's due to this reason that traders start to sell stocks of firms that are reporting lower profits and hence Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are likely to be moving downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contract Specs
Margin Requirement Per Lot - £ 70
Value per Pips - £ 0.1
Note: Even though general trend is generally move upwards, as a trader you've to consider and factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the market pullbackretracement move may also be a significant one at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: Stock strategy and at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About money management strategies in stock indices tutorials: What's stock index money management and index equity management strategies.
