What is UKX100 Stock Indices Trade System? - Learn Trading UKX100 Index
The UKX100 Stock Indices Trade Chart
The UKX100 Stock Indices 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 trading chart so that you can begin to trade it. Example displayed above is of UKX100 Indices on MetaTrader 4 Forex TradeSoftware.
Stock Indices Trade System for Trading UKX100 Stock Indices
The UKX100 Indices shows relative movement of the top 100 stocks in UK. In general the share size of top 100 companies will keep moving upwards, therefore this stock index will also over time keep heading upwards. Should a company not meet the required growth targets, the company will be removed from the and replaced with an alternative company that has better growth prospects.
As a trader wanting to trade this stock index, the general direction at any given time will be more bullish than bearish. This is because as long as the 100 companies being tracked are doing good business, then their share value will keep moving upwards, and hence this 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 of the times it's performing good) this upward trend is more likely to be in-favor. A good stock indices trade strategy would be to buy the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits & therefore Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contract Specifications
Margin Requirement Per Lot - £ 70
Value per Pip - £ 0.1
Note: Even though general trend is generally move upward, as a trader you've got to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace & pull-back, the market retracement move may also be a significant one at times & hence as a trader you need to time your entry precisely when using this trading strategy: Stock strategy & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About money management methods in Indices topics: What is Stock Index equity management & stock index equity management strategies.
