S&P/AUS200 Index

AUS 200 stock 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 AUS200. This stock 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 the change in stock prices of various components stocks in this stock index.

How Do You Trade the the AUS200 System? - AUS200 Trading Strategies

AUS 200 Chart

AUS 200 chart is displayed and portrayed above. On the example shown above this trading instrument is referred to & known as as AUS200CASH. As a trader you want to find a broker who provides AUS 200 chart so that you as a trader can begin to trade it. The index example shown above is that of AUS200 on MT4 Platform Software.

Other Information about AUS200 Index

Official Stock Index Symbol - AS51

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

Index Trade System for AUS200 Index

AUS 200 will in general move up because shares prices always move upward over time. This index in general moves upwards 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 Gold as well as other valuable commodities.

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

As a indices trader you want to be biased and keep on buying as the index moves and heads upward. When Australian economic environment is doing & performing well and good (majority of the times it is doing well) this upwards trend is much more likely to be the one ruling. A good trading strategy for a trader to use when trading this stock index would be to buy the market dips.

During Economic Slow Down and Recession

During economic slow down & recession periods, companies begin reporting lower revenues, lower profits and lowers growth prospect. It is because of this reason that traders begin & start to sell stocks & shares of companies that are reporting & posting lower profits and hence stock index keeping track of these specific stocks also will start to move downwards.

Therefore, during these times, market trends are much more likely to be moving downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stocks market index that you are trading.

Contracts Specifications

Margin Requirement for 1 Lot/Contract - AUD 70

Value per 1 Pip(Point) - AUD 0.1

NB: Even though general trend is in general move upwards, as a stock indices trader you've got to factor in daily market volatility, on some days the stock index may move and oscillate in a range-bound sideways move or even pullback and retrace, retracement might also be significant some times & therefore you as the trader you need to time your entry precisely when using this trade strategy: Index trade strategy and at the same time use proper and appropriate money management guidelines & techniques just in case of more unexpected volatility in the market. About money management guidelines courses: What's money management guidelines & strategies & indices equity management strategies/methods.

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