S&P/AUS 200 Index

AUS 200 index keeps track of the top corporations in Australian Stocks Exchange Market. The total number of shares & 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 keeps track of 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 & displayed above. On the example shown above this trading instrument is referred to & known as as AUS200CASH. As a trader you want to find a broker who offers AUS 200 chart so that as you as a trader can start & begin to trade it. The example Which is illustrated above is that of AUS 200 on MT4 FX and Software.

Other Info about AUS 200 Index

Official Index Symbol - AS51:IND

The 200 component stocks which make up the AUS200 are chosen from top performing Australian companies 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 which 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 keeps track of the total change in the stocks prices.

Strategy to AUS200 Index

AUS 200 will in general moves upwards because stock prices always move upwards 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 XAU USD & also other valuable commodities.

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

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

During Economic Slow-Down & Recession

During economic slow down recession periods, firms begin reporting slower revenues, lower profits & lowers growth prospect. It is because of this reason that traders begin & start to sell stocks/shares 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 current downwards trends of the stock market index which you are trading.

Contracts & Details

Margin Requirement for 1 Lot/Contract - 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 of the days the index might move in a range or even pull-back, market pullback/retracement might also be significant some times & therefore as the trader you need to time your entry precisely using this trading strategy: trading strategy & at the same time use the appropriate and proper and appropriate money management techniques & guidelines in case there is unexpected market trend volatility. About equity management guidelines/techniques in index topics: What's money indices management and stock index equity management system/plan.

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