Trade Stock Indices

What's UKX100 Trade Strategy? - Guide for Trading UKX 100 Stock Index

Guide to Trading UKX 100 - How to Trade UKX 100 Index

The UKX 100 Chart

The UKX 100 trade chart is displayed and shown and displayed above. On the above example the stock index is named as UKX100CASH. As a trader you want to find an online broker that provides UKX 100 chart so that you as a trader can begin to trade it. Indices example displayed above is of UKX 100 on MT4 FX Trading Software.

Strategy of Trading UKX 100 Index

UKX 100 represents relative market movement of top 100 stocks in the United Kingdom. In general the share size of the top 100 corporations will keep moving upwards, therefore this index will also over time keep moving upwards. Should a company not meet the required growth targets, company will be removed from the index and replaced with another company that has better growth prospects.

As a trader wanting to trade this index, general direction at any given 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 going upwards, & therefore this index will also keep moving in an upwards trend.

As a trader you want to be biased & keep buying as the stock index moves upwards. When UK economy is performing 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 & recession times, companies begin to report lower profits & lower business growth prospects. It is due to this reason that traders begin to sell stocks of companies which arereporting lower profits & therefore stock index tracking these particular stocks also will begin to move downward.

Hence, during these times index trends are likely to be moving downwards and 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 and Details

Margin Requirement for 1 Lot - £ 70

Value per 1Pip - £ 0.1

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

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