UK 100 Index

UK 100 - Financial Times Stocks Exchange Market, UK 100 represents the Stock index of the top 1 hundred biggest corporations in UK that are displayed in London Stocks Market. The calculation of this index incorporates stocks which are determined quarterly. These stocks included in the UK100 represent 80 % of the overall total market size of the London Stock Exchange Market displayed firms.

Because the UK 100 stock index tracks 100 companies the index will be more volatile as compared to an stock index such as Germany DAX30 which only tracks 30 companies.

Best Strategies to Trading UK100 Guide - Download UK100 Strategies Guide

The UK 100 Chart

The UK 100 trade chart is displayed and illustrated & shown & displayed above. On the above example the index is named as UK100CASH. As a trader you want to find an online broker that provides UK 100 trade chart so that as you as a trader can start to trade it. Example displayed above is of UK-100 on MT4 FX and Platform.

Other Information about UK 100 Index

Official Symbol - UK:IND

The 100 constituent stocks which constitute UK100 are chosen from the best performing United Kingdom firms. The UK 100 share stock index is closely followed as an indicator of the prosperity of UK businesses. The constituents that make up this stock index are reviewed quarterly. The calculation of this stock index is a simple formula that is based on the market capitalization.

Strategy of Trading UK 100 Index

UK100 represents the relative movement of the top 1 hundred stocks in UK. In general the share size value of the top 1 hundred companies will keep heading upwards, therefore this index also will over time keep moving upwards. Should a company not meet required business growth targets, the company will be removed from the stock index & replaced with another company that has better growth prospects.

As a trader wanting to trade this stock index, general direction at any one time will be more bullish than bearish. This is because as long as the 100 companies being tracked are doing booming business, then their share value will keep heading upwards, and therefore this stock index also will keep moving in an upwards trend.

As a trader you want to be biased and keep buying as the stock index moves upwards. When UK economy is doing good (most 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 dips.

During Economic Slow-Down and Recession

During economic slow-down and recession times, companies begin to report lower profits & lower growth prospects. It is due to this reason that traders begin to sell stocks of companies which arereporting lower profits & therefore index tracking these particular stocks will also 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 downward trends of the stock market stock index that you are trading.

Contracts & Specifications

Margin Requirement for 1 Lot - £ 70

Value per 1 Pip(Point) - £ 0.1

NB: Even though general trend is in general move upwards, as a stock index trader you've got to factor in daily market volatility, on some days the stock index may oscillate or even retrace, market pull back might also be substantial sometimes & hence as a trader you need to time your entry precisely using this strategy: trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About equity management principles in index topics: What is money indices management & index equity management methods.

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