UKX 100 Index

UKX 100 - Financial Times Bourse, UKX 100 represents the index of the top 1 hundred largest companies in UK that are shown in London Stocks Exchange Market. The calculation of this index incorporates stocks that are determined quarterly. These stocks included in the UKX-100 represent 80 % of the overall total market value of the London Stock Exchange Market shown firms.

Because the UKX100 stock index tracks 100 firms the index will be more volatile as compared to an stock index such as Germany DAX30 which only tracks 30 firms.

Indices Strategy for UKX100 Index

UKX 100 Chart

UKX 100 trading chart is displayed and portrayed above. On the above example the index is named as UKX100CASH. As a trader you want to find an online broker that provides UKX 100 trading chart so that you as a trader can start to trade it. The example That is displayed above is that of UKX 100 on MetaTrader 4 Platform.

Other Information about UKX100 Index

Index Symbol - UKX:IND

The 100 component stocks which make up the UKX-100 are picked from the top United Kingdom(UK) firms. The UKX100 share stock index is closely followed as an indicator of the prosperity of UK businesses. The constituents that make up this stock index are revised quarterly. The calculation of this index is a simple formula that is based on the market capitalization.

Trading System for UKX100 Index

UKX100 represents the relative movement of the top 1 hundred stocks in UK. In general the share value of the top 1 hundred companies will keep heading upwards, hence this index will also over time keep moving upward. Should a company not meet required business growth targets, the company will be removed from the index & replaced with another company that has better growth prospects.

As a trader wanting to trade this index, general market direction sentiment at any one time will be more bullish than bearish. This is because as long as the 100 corporations being tracked are doing good business, then their share value will keep heading up, and hence this index will also keep moving in an upwards trend.

As a trader you want to be biased & keep buying as the index moves upward. When UK economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock 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 arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.

Therefore, during these market times, the market trends are likely to be moving downwards & 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 - £ 70

Value per 1 Pip(Point) - £ 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 might also be significant some times and hence as a trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About equity management principles in index topics: What's index money management & index money management methods.

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