S&P/AUS200 Index

AUS 200 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 the capitalization of the included companies 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 the change in stock prices of various components stocks in this stock index.

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

AUS 200 Chart

AUS 200 trading chart is displayed and portrayed above. On the example shown above this trading instrument is referred to as as AUS200CASH. As a trader you want to find a broker that provides AUS200 trading chart so that you as a trader can start to trade it. The index example illustrated above is that of AUS200 on MetaTrader 4 Platform.

Other Information about AUS200 Index

Official Stock Index Symbol - AS51

The 200 constituent stocks which constitute the AUS-200 are picked from top Australian corporations measured by capitalization. This 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 stock index will only reflect a change in the movement only when the shares prices go up & 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 starts value of all shares prices & when this stock index is calculated it tracks 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 upwards 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 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 (majority of the 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 market dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits and lower growth prospects. It is because of this reason that investors begin to sell stocks of companies that are reporting & posting lower profits and hence stock index keeping track of these specific stocks also will start to move downward.

Therefore, during these times, market trends are much more 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 1 Pip(Point) - AUD 0.1

NB: Even though general trend is in general move upward, as a stock indices trader you've got 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 some times & therefore as a trader you need to time your entry precisely when using this trade strategy: Index 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 & indices equity management methods.

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