UKX 100 Index

UKX 100 - Financial Times Bourse, UKX 100 represents the Stock index of the top 1 hundred 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 overall total market value of the London Stock Exchange 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 tracks 30 firms.

Best Strategies to Trading UKX100 Guide - Download UKX100 Strategies Tutorial

UKX 100 Trading Chart

UKX 100 chart is displayed & 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 as a trader can start to trade it. The example That is displayed above is that of UKX 100 on MetaTrader 4 Forex Software.

Other Information about UKX100 Index

Official Stock Index Symbol - UKX:IND

The 100 component 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 constituents that make up this stock index are revised 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 stocks 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 company not meet required business growth targets, the 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 one 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 heading 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 (majority of the 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 market dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits and lower 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 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 days the index might move in a range or even retrace, market retracement may also be significant some times & therefore as a trader you need to time your 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 & stock index money management methods.

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