S&P/AUS200 Stock Index

AUS200 stock index keeps track of the top companies in Australian Stocks Exchange Market. The total number of stocks used to calculate this index is the 200 top Australian companies represented in the AUS200. This stock index is calculated based on capitalization of the included companies and it is revised quarterly.

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

How Do I Trade the the AUS 200 Trade System? - AUS 200 Trading Strategies

AUS200 Chart

AUS200 trading chart is shown and portrayed & shown above. On the example above this instrument is referred to as as AUS200CASH. As a trader you want to find a broker that provides AUS200 trading chart so that you can start to trade it. The index example shown above is that of AUS200 on MetaTrader 4 Platform.

Other Information about AUS200 Index

Official Stock Indices Symbol - AS51:IND

The 200 constituent stocks which constitute the AUS-200 are picked from top Australian corporations measured by capitalization. This 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 stock index will only reflect a change in movement only when the shares prices move up & not when market capitalization does, hence, this stock index show the difference in the shares prices rather than the total market capitalization. This is because the base represents the starts value of all shares prices and when this stock index is calculated it tracks the total change in the shares prices.

Indices Trade System for AUS200 Index

AUS200 will in general moves move up because shares prices always move upwards over time. This index in general moves upwards over the long-term because Australian economy also shows strong growth backed by their mining sector which has great reserves of Gold as well as other valuable commodities.

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

As a trader you want to be biased and keep buying as the stock index moves upward. When Australian economy is doing well (most 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 dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, firms begin to report lower profits and lower business 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, market 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 - AUD 70

Value per 1Pip - AUD 0.1

NB: Even though general trend is generally move upward, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement may also be significant at times & therefore as a trader you need to time your trade entry precisely when using this trade strategy: Stock Indices trade strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market. About money management rules courses: What's money management & stock indices equity management methods.

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