S&P/AUS 200 Index

AUS 200 index keeps track of the top firms in Australian Stocks Market. The total number of stocks used to calculate this stock index is the 200 top Australian firms represented in AUS 200. This index is calculated based on capitalization of the included corporations and it is reviewed quarterly.

Even though this index is calculated based on capitalization, it doesn't track capitalization: it tracks change in stock prices of various component stocks in this stock index.

Best Strategies to Trading AUS200 Guide - AUS200 Cash Stock Indices

AUS 200 Trade Chart

AUS 200 chart is illustrated and shown & displayed above. On the example above this instrument is referred to as as AUS200CASH. As a trader you want to find a broker that provides AUS 200 chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of AUS 200 on MT4 Forex and Software.

Other Info about AUS 200 Stock Index

Official Index Symbol - AS51:IND

The 200 constituent stocks that make up the AUS 200 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 and 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.

Strategy to Trading AUS 200 Index

AUS 200 will generally moves move up because stock prices always move upward over time. This stock index generally moves upward over the longterm because Australian economy also shows strong growth backed by their mining sector which has great reserves of XAUUSD as well as other valuable commodities.

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

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

During Economic Slow-Down and Recession

During economic slow-down & recession times, corporations begin to report lower profits & lower business growth prospects. It's due to this reason that traders begin to sell stocks of corporations that arereporting lower profits & hence stock index tracking these particular stocks also will begin to move downward.

Hence, during these times index trends are likely to be moving downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.

Contracts & Details

Margin Requirement Per 1 Lot - AUD 70

Value per 1 Pip - AUD 0.1

NB: Even though general trend is generally move upwards, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may move in a range or even pullback, market pullbackretracement might also be significant at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About equity management guidelines in index topics: What's money indices management & stock index equity management methods.

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