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 which are displayed in London Bourse. The calculation of this index incorporates stocks that are determined quarterly. These stocks included in the UK100 represent 80 % of the overall total market size of the London Stock Market displayed firms and companies.

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

Best Strategies to UK100 Guide - Download UK100 Strategies Guide

The UK 100 Chart

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

Other Data about UK 100 Index

Official Symbol - UK:IND

The 100 component stocks which constitute UK100 are chosen from the top 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 constitute this stock index are revised 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 shares 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 corporate not meet required business expansion targets, the company will be removed from the index & replaced with another corporate that has better growth prospects.

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

As a indexes trader you want to be biased and keep on buying as the index moves and heads upwards. When UK economy is doing good (most times it is doing good) this upwards trend is much more likely to be the one present. A good stock indices trade strategy would be to buy dips.

During Economic Slow Down & Recession

During economic slow down & recession periods, companies begin reporting lower earnings, lower profits & lower business growth forecasts. It is due to this reason that traders begin & start to sell stocks/shares of companies which are announcing lower profits & therefore index tracking these particular stocks will also start to head downward.

Hence, during these times index trends are much more likely to be heading and going downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stocks market index that you're trading.

Contracts & Specifications

Margin Requirement per 1 Lot/Contract - £ 70

Value per 1 Pip(Point) - £ 0.1

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

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