S&P/AUS 200 Index

AUS 200 Stock 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 AUS200. This Stock Index is calculated based on the capitalization of included firms and it's revised quarterly.

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

Stock Indices Strategies for Trading AUS 200 Index

AUS 200 Trading Chart

AUS 200 Indices chart is illustrated and shown above. On the above example illustration this financial instrument is named AUS200CASH. As a trader you want to find a broker that provides AUS200 trading chart so that as you as the trader can begin to trade it. The example Which is illustrated above is the one of AUS 200 Indices on MetaTrader 4 Software Platform.

Other Info about AUS 200 Stock Indices

Indices Symbol - AS51

The 200 constituent stocks that constitute AUS 200 Indices are selected from top performing Australian firms measured by capitalization. This Index has got a given specified base: a 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 Stock 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 for Trading AUS 200 Index

AUS 200 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 XAU/USD & other valuable commodities.

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

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

During Economic Slow-Down & Recession

During the economic slowdown & recession periods, companies begin to report slower profits and lowers growth projections. 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 and begin to move downwards.

Hence, during these times, market trends are much more likely to be moving downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downward trends of the index which you 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 moves upwards, as a trader you've to consider and factor on daily market price volatility, on some of the days the Indices may move in a range or even retrace and pull back, the market retracement/pullback move might also be a substantial one at times and hence you as the trader you need to time your trade entry strictly using this trading strategy: stock index strategy & at the same time use suitable & proper money management guidelines/rules just in case there is unexpected volatility in the market trend. About equity management guidelines/principles in stock indices topics: What is money Indices management and index equity management strategies/methods.

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