S&P/AS51 Stock Index

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

Even though this stock index is calculated based on capitalization, it doesn't track capitalization: it tracks change in stock prices of various constituent stocks in this stock index.

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

The AS51 Chart

The AS51 trade chart is displayed and shown and displayed above. On example above this instrument is named as AS51CASH. As a trader you want to find a broker that provides AS51 trade chart so that you as a trader can start to trade it. Example displayed above is of AS51 Stock Index on MetaTrader 4 Platform Software.

Other Information about AS51 Index

Official Symbol - AS51:IND

The 200 components stocks that constitute the AS51 Stock Index are chosen from best performing Australian companies measured by capitalization. This stock index has a base up on which the calculated total market capitalization is adjusted relative to this base - the calculation also has a divisor that means that this index will only reflect a change in movement only when the stocks prices move up and not when market capitalization does, therefore, this index show the difference in the stocks prices rather than the total market capitalization. This is because the base represents the starts size of all stocks prices and when this index is calculated it tracks the total change in the stocks prices.

Trade Strategy for AS51 Stock Index

AS51 Index will generally move up because stocks prices always move upwards over time. This index generally moves upward over the long term because Australian economy also shows strong growth backed by their mining sector which has great reserves of XAUUSD as well as other valuable commodities.

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

As a trader you want to be biased & keep buying as the stock index moves upwards. When Australian 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 start to report lower profits and 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, trends are likely to be moving downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.

Contracts Details

Margin Requirement for 1 Lot - AUD 70

Value per 1Pip - AUD 0.1

NB: Even though general trend is generally moves upwards, as a stock index trader you have to factor in daily market volatility, on some days the index might oscillate or even retrace, market pull back may also be substantial at times and therefore 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 equity management and equity management strategies.

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