S&P/AS 51 Index

AS 51 Indices tracks top firms in Australia Stock Market. The total number of stocks used to calculate this index is the 200 top Australian firms represented in AS51. This Stock Index is calculated based on the capitalization of included firms & it is revised quarterly.

Even though this stock index is calculated based on the capitalization, it does not track capitalization: it tracks change in Indices prices of various component/constituent stocks in this stock index.

AS 51 Indices - AS51 Indices

AS 51 Chart

AS 51 chart is shown & illustrated and shown above. On the above example illustration this financial instrument is named AS51CASH. As a trader you want to find a broker that provides AS 51 trading chart so that as you as a trader can start to trade it. The example Which is illustrated & shown above is the one of AS 51 Index on MT4.

Other Info about AS51 Index

Indices Symbol - AS51

The 200 constituent stocks that constitute AS 51 Index are selected from top performing Australian companies measured by capitalization. This Stock Index has got a specified base upon which the calculated sum total market capitalization is adjusted in relation to this base - the calculation formula also has got a divisor that means that this Index will only show a change in the movement only when the stock prices move up and not when market capitalization does, hence, this stock index show the difference in the securities prices rather than the total market capitalization. This is because the base represents the start value of all stock prices & when this stock index is calculated it tracks the overall change in the stock prices.

Strategy to AS 51 Index

AS 51 Index will in general move upwards because the stock prices always move upwards over time. This Stock Index in general moves upwards over long term because the Australia economy also shows strong growth backed up by their mining sector/industry that has got great reserves of and other valuable commodities.

As a trader wanting to trade this Index, the Indices will move upwards faster when the Australian economic indicators show accelerated economic growth.

As a stock index trader you want to be biased and keep on buying as the index heads and moves upwards. When the Australian economy is performing good (most of the times it's performing good) this upwards trend is much more likely to be in place. A good stock index trading strategy would be to keep buying and buy the dips.

During Economic Slow-Down and Recession

During the economic slowdown & recession times, companies begin and start reporting slower revenues, slower profits & slower growth projection. It's due to this reason that traders begin to sell stocks of firms that are recording & reporting lower profits & hence Indices tracking these particular specifed stocks will also begin to head & move downward.

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

Contract Specs

Margin Requirement for 1 Lot - AUD 70

Value per Pips - AUD 0.1

Note: Even though general and overall trend is generally move upward, as a trader you've to consider and factor on daily market price volatility, on some of the days the Indices might move in a range or even retrace & retracement, the market pullback move might also be a significant one at times & hence you as a trader you need to time your trade entry strictly using this trading strategy & at the same time use proper/suitable money management rules & guidelines just in case of more unexpected volatility in the market trend. About money management strategies/guidelines in indices lessons: What's stock index money management strategies/guidelines and index equity management methods.

Study More Guides & Topics: