S&P/AUS 200 Index
AUS 200 Stock Indices tracks top corporations in Australia Stock Market. The total number of stocks used to calculate this index is the 200 top Australian firms represented in AUS 200. This Stock Index is calculated based on capitalization of included firms and it is reviewed quarterly.
Even though this index is calculated based on capitalization, it doesn't track capitalization; it tracks change in Indices prices of various component stocks in this stock index.
AUS 200 Trading Chart
AUS 200 Indices chart is illustrated and shown above. On above example this instrument is named AUS 200CASH. As a trader you want to find a broker that provides AUS 200 trading chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of AUS 200 Stock Indices on MT4 Software.
Other Info about AUS 200 Stock Indices
Indices Symbol - AS 51:IND
The 200 constituent stocks that constitute AUS 200 Stock Indices are selected from top performing Australian firms measured by capitalization. This Index has a base up on which the calculated total market capitalization is adjusted relative to this base - the calculation also has a divisor that means that this Stock Index will only reflect a change in movement only when the stock prices move up & not when market capitalization does, hence, this stock index show the difference in the stock prices rather than the total market capitalization. This is because the base represents the starts value of all stock prices & when this stock index is calculated it tracks the total change in the stock prices.
Trading Strategy for Trading AUS 200 Index
AUS 200 Index will generally moves move up because stock prices always move upward over time. This Index generally moves upwards over longterm because Australian economy also shows strong growth backed by their mining sector which has great reserves of XAUUSD & other valuable commodities.
As a trader wanting to trade this Stock Index, the Indices will move upwards faster when the Australian economic indicators show accelerated economic growth.
As a trader you want to be biased & keep buying as the stock index moves upwards. When Australian economy is performing good (most times it's performing good) this upwards trend is more likely to be in place. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down and 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 stock index that you're trading.
Contract Specs
Margin Requirement Per Lot - AUD 70
Value per Pips - AUD 0.1
Note: Even though general trend is generally moves upwards, as a trader you've to consider & 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 might also be a substantial one at times and therefore as a trader you need to mark-time your entry precisely using this trading strategy: stock index trading strategy and at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About equity management methods in stock indices topics: What's money Stock Indices management and index equity management strategies.
