S&P/AUS 200 Index

AUS 200 index keeps track of the top corporations in Australian Stocks Market. The total number of stocks used to calculate this index is the 200 top Australian firms represented in AUS200. This index is calculated based on the capitalization of the included firms and it is re-evaluated quarterly.

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

Best Strategies to Trading AUS200 Guide - AUS200 Cash Stock Index

AUS 200 Trade Chart

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

Other Info about AUS 200 Index

Official Index Symbol - AS51:IND

The 200 constituent stocks which make up the AUS200 are chosen from top performing Australian firms measured by capitalization. This 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 stock index will only reflect a change in the movement only when the shares prices go up and not when market capitalization does, hence, this stock index show the difference in the shares prices rather than the overall total market capitalization. This is because the base represents the start value of all the stock prices and when this stock index is calculated it tracks the total change in the stocks prices.

Strategy to Trading AUS200 Index

AUS 200 will in general moves upwards because stock prices always move upward over time. This stock index generally moves upward over the longterm because the Australian economy also shows strong and robust growth backed up by their mining sector that has got great reserves of XAUUSD & also 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 (majority of the times it's performing good) this upward 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 growth prospects. It is because of this reason that traders begin to sell stocks of corporations that are recording lower profits & hence stock index monitoring and keeping track of these given stocks will also start to head downward.

Hence, during these times index trends are more likely to be heading and going 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(Point) - AUD 0.1

NB: Even though general trend is in general move upwards, 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 pull-back, market pullbackretracement might also be significant some times & hence as a trader you need to 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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