S&P/AS51 Index

AS51 index keeps track of the top companies in Australian Stocks Market. The total number of stocks used to calculate this index is the 200 top Australian companies 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 tracks change in stock prices of various constituent stocks in this stock index.

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

The AS51 Chart

The AS51 trade chart is displayed and illustrated and shown and 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 provides AS51 trade chart so that as you as a trader can start to trade it. Example displayed above is of AS 51 Index on MetaTrader 4 Platform Software.

Other Information 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 base upon which the calculated total market capitalization is adjusted relative to this base - the calculation formula also has got a divisor that means that 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 starts size of all stocks prices & when this index is calculated it tracks the total change in the stocks prices.

Trade Strategy for AS51 Index

AS51 Index will in general move up 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 XAUUSD & also 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 doing 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 growth prospects. It is due to this reason that traders begin to sell stocks 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 & 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 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 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: 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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