S&P/AS 51 Index

AS 51 index keeps track of the top companies in Australian Stocks Exchange Market. The total number of stocks used to calculate this index is the 200 top Australian companies represented in the AS51. This stock index is calculated based on the capitalization of the included companies and it is re-evaluated quarterly.

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

Best Strategies to Trading AS51 Guide - AS51 Index Tutorial Strategy

The AS 51 Index Trade Chart

AS 51 Index trade chart is displayed & illustrated and shown above. On example put on display above this trading instrument is named as AS51CASH. As a trader you want to find a broker that provides AS 51 Index trade chart so that you as a trader can begin to trade it. The example That is displayed above is that of AS 51 Index on MetaTrader 4 Forex & Software Platform.

Other Information about AS51 Index

Official Index Symbol - AS51

The 200 component stocks which make up the AS51 Index are chosen from top Australian companies measured by capitalization. This stock index has got a base upon which the calculated total market capitalization is adjusted relative to this base - the calculation formula also has got a divisor that means that this index will only reflect a change in the movement only when the shares prices go up and not when market capitalization does, hence, this index show the difference in the shares prices rather than the overall total market capitalization. This is because the base represents the starts value of all shares prices & when this stock index is calculated it tracks the total change in the stocks prices.

Strategy for Trading/Transacting AS51 Index

AS 51 Index will in general move up because shares prices always move upward over time. This index in general moves upwards over the long-term because the Australian economy also shows strong and robust growth backed up by their mining sector that has got great reserves of Gold as well as other valuable commodities.

As a trader wanting to trade this stock index, index 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 index moves upward. When Australian economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock index trade strategy would be to keep buying and buy the market dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, companies start to report lower profits & lower growth prospects. It is because of this reason that investors start to sell stocks of companies that are reporting & recording lower profits & hence index tracking these particular stocks will also start to move downward.

Therefore, during these times stock index trends are much more likely to be moving downward & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you're trading.

Contracts & Specs

Margin Requirement Per 1 Lot - AUD 70

Value per 1 Pip(Point) - AUD 0.1

NB: Even though general trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be significant some times & therefore as a trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About equity management principles in index topics: What's money indices management & indices money management strategies.

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