UKX 100 Index

UKX100 - Financial Times Bourse, UKX 100 represents the Stock index of the top 100 largest companies in UK that are shown in London Stock Exchange Market. The calculation of this stock index incorporates stocks that are determined quarterly. These stocks included in the UKX-100 represent 80 % of the total market value of the London Stock Exchange Market shown corporations.

Because the UKX 100 index tracks 100 firms the stock index will be more volatile as compared to an index such as Germany DAX 30 which only tracks 30 firms.

Best Strategies to Trading UKX100 Guide - Download UKX100 Strategies Tutorial

UKX 100 Trading Chart

UKX 100 chart is shown & illustrated and shown above. On the above example the stock index is named as UK100CASH. As a trader you want to find an online broker that provides UKX 100 trading chart so that you can start to trade it. The example That is shown above is that of UKX 100 on MetaTrader 4 Forex Software.

Other Information about UKX 100 Index

Official Stock Indices Symbol - UKX:IND

The 100 component stocks that constitute UKX100 are selected from the top United Kingdom corporations. The UKX 100 share index is closely followed as an indicator of the prosperity of UK businesses. The constituents that make up this stock index are revised quarterly. The calculation of this stock index is a simple formula based on market capitalization.

Strategy for Trading UKX 100 Index

UKX 100 represents relative trend movement of the top 100 stocks in UK. In general the share value of the top 100 companies will keep heading upwards, hence this stock index also will over time keep moving upward. Should a company not meet the required growth targets, company will be removed from the stock index and replaced with another company that has better growth prospects.

As a trader wanting to trade this stock index, general direction at any given time will be more bullish than bearish. This is because as long as the 100 corporations being tracked are doing good business, then their share value will keep going up, & hence 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 upward. When UK economy is doing well (most times it is doing well) this upwards trend is more than likely to be ruling. A good index trade strategy would be to buy the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, firms begin to report lower profits and lower business growth prospects. It is because of this reason that investors begin to sell stocks of companies that arereporting lower profits and hence stock index tracking these particular stocks also will start to move downward.

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

Contracts & Specifications

Margin Requirement Per 1 Lot - £ 70

Value per 1Pip - £ 0.1

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

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