UKX 100 Index

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

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

Indices Strategy for UKX100 Index

UKX 100 Chart

UKX 100 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 who provides UKX 100 trading chart so that you as a trader can start & begin to trade it. The example That is displayed above is that of UKX 100 on MetaTrader 4 Platform Software.

Other Data about UKX100 Index

Index Symbol - UKX:IND

The 100 constituent 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 constitute this stock index are reviewed quarterly. The calculation of this index is a simple formula that is based on the market capitalization.

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 expansion targets, the corporate will be removed from the index & replaced with another corporate that has better growth prospects.

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

As a indices trader you want to be biased & keep on buying as the index moves upward. When UK economic and business environment is doing well and good (most of the times it is doing well) this upward market trend is much more likely to be the one ruling. A good stock index trade strategy would be to buy the market dips.

During Economic Slow-Down and Recession

During economic slow down & recession periods, firms begin reporting lower revenues, lower profits and lowers growth prospect. It is because of this reason that investors/traders start to sell stocks & shares of companies that are posting and recording lower profits and hence stock index keeping track of these given stocks will also begin to go and head downward.

Therefore, during these market times, the market trends are much more likely to be heading and moviing downward & as a trader you should also adjust your trading strategy accordingly to fit the current downwards trends of the stock market index which you're trading.

Contracts Specifications

Margin Requirement for 1 Lot/Contract - £ 70

Value per 1 Pip(Point) - £ 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 of the days the index might move in a range or even retrace, market retracement might & may also be significant some times and thence you as the trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use proper & appropriate money management guidelines & strategies just in case of more unexpected volatility in the market. About equity management principles/guidelines in index topics: What's index money management guidelines & techniques & index money management strategies.

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