S&P/AS51 Index

AS51 index keeps track of the top companies in Australian Stocks Exchange Market. The total number of shares/stocks used to calculate this stock index is the 200 top Australian corporations represented in the AS51. This index is calculated based on the capitalization of the included firms and it is re-evaluated quarterly.

Even though this stock index is calculated based on the market capitalization, it does not track capitalization: it keeps track of change in stock prices of various constituent stocks in this stock index.

How Can I Trade AS 51 Trading System? - AS 51 Index Trade Strategy

The AS51 Chart

The AS 51 trade chart is displayed and illustrated and shown & displayed above. On example put on display above this trading instrument is named as AS51CASH. As a trader you want to find a broker that offers AS 51 trade chart so that as you as a trader can begin to trade it. Example displayed above is of AS 51 Index on MetaTrader 4 Platform Software.

Other Data about AS51 Index

Official Symbol - AS51

The 200 components stocks which constitute the AS51 Index are chosen from best performing Australian companies measured by capitalization. This stock index has got a given specified base: a base: a base upon which the calculated total market capitalization is adjusted relative to this base - the calculation formula also has got a divisor that means this index will only reflect a change in the movement only when the shares prices go up and not when market capitalization does, therefore, this index show the difference in the shares prices rather than the overall total market capitalization. This is because the base represents the start size of all shares & stocks prices & when this index is calculated it monitors the total change in the stocks prices.

Trade Strategy for AS51 Index

AS51 Index will in general move upward because the stocks prices always move upwards over time. This index generally moves upward over the long-term because the Australian economy also shows strong and robust growth backed up by their mining sector that has got great reserves of XAU USD & also other valuable commodities.

As a trader wanting to trade this index, stock index will move upwards faster when the Australian economic indicators show accelerated economic growth.

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

During Economic Slow Down & Recession

During economic slow down recession periods, companies start reporting slower earnings, lower profits and lowers growth prospects. It is due to this reason that traders begin & start to sell stocks/shares of companies which are reporting & announcing lower profits & therefore stock index monitoring these particular given stocks will also begin going downward.

Hence, during these market times, the market trends are a lot more likely to be moving and going down & you as a trader should also try to adjust your trading strategy accordingly to suit & fit the ruling down trend of the stock market stock index that you are trading.

Contracts Details

Margin Requirement per 1 Lot/Contract - AUD 70

Value per 1 Pip(Point) - AUD 0.1

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

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