UKX 100 Index

UKX 100 - Financial Times Bourse, UKX 100 represents the Stock index of the top 1 hundred largest and biggest corporations in UK that are shown in London Stock Exchange Market. The calculation of this stock index incorporates shares that are determined quarterly. These stocks included in the UKX-100 represent 80 % of the overall total market value of the London Stock Market shown firms.

Because the UKX100 index tracks 100 firms the stock index will be more volatile as compared to an index such as Germany DAX30 which only keeps track of 30 companies.

Best Strategies to Trading UKX100 Guide - Download UKX100 Strategies Tutorial

UKX 100 Chart

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

Other Data about UKX100 Index

Official Stock Index Symbol - UKX:IND

The 100 constituent stocks which constitute UKX100 are chosen from the top United Kingdom(UK) companies. The UKX100 share index is closely followed as an indicator of the prosperity of UK businesses. The components that constitute this stock index are reviewed quarterly. The calculation of this stock index is a simple formula that is based on the market capitalization.

Strategy for Trading/Transacting UKX100 Index

UKX100 represents relative trend movement of the top 1 hundred shares in UK. In general the share value of the top 1 hundred companies will keep heading upwards, hence this stock index also will over time keep moving upward. Should a corporate not meet required business expansion targets, the company will be removed from the index and 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 more likely bullish than bearish. This is because as long as the 100 corporations which are being tracked & monitored are doing good business, then their share value will keep heading and moving up, and threfore this stock index also will keep moving in an upward market trend.

As a indexes trader you want to be biased and keep on buying as the index moves and heads upward. When UK economic and business environment is doing well and good (majority of the times it is doing well) this upward trend is more than likely to be the one that is present. A good strategy to use for trading this index would be to buy the market dips.

During Economic Slow-Down and Recession

During economic slow down & recession periods, companies begin reporting lower revenues, lower profits and lower business growth forecast. It is because of this reason that investors/traders start to sell stocks & shares of companies that are recording and announcing lower profits and hence stock index monitoring and keeping track of these given stocks also will start to move downwards.

Therefore, during these times stock index trends are more likely to be going and heading downwards & as a trader you should also adjust your strategy accordingly to fit the current downwards trends of the stock market index which you are 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 moves upward, as a stock indices trader you've got to factor in daily market volatility, on some of the trading days the index might oscillate & move in a sideways range move or might even pullback/retrace, retracement may also be significant some times & hence as the trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use the suitable/proper money management guidelines/techniques in case there is unexpected volatility in the market. About money management rules in index topics: What's money indices management and stock index money management system/plan.

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