S&P/ASX 200 Index

The ASX200 stock index tracks Australia's top 200 companies. It's based on the capitalization of these corporations and gets reviewed every quarter.

This stock index uses market cap for calculation. Yet it tracks price changes in its stocks, not the cap itself.

S&P ASX 200 - ASX 200 Index

The ASX200 Chart

The ASX 200 trade chart is displayed and illustrated and shown above. On example illustration revealed above this financial trading instrument is named as AUS200CASH. You want to search & find a broker that provides this ASX 200 chart so that you can start to trade it. Example displayed and shown above is of ASX-200 on the MetaTrader 4 FX and Index Software.

Other Info about the ASX 200 Index

Official Symbol - AS51:IND

The 200 constituent stocks which constitute ASX200 are chosen from the top Australian corporations measured by capitalization. This stock index has got a particular specified base upon which the sum total market capitalization is adjusted in relation to this base - the calculation formula also has got a divisor which means that the stock index will only reflect a change in the movement only when the stocks prices go up and not when the market capitalization does, therefore, this stock index show the difference in the shares prices rather than the total market capitalization. This is because the base represents the start size of all shares prices and when this stock index is calculated it monitors the total change in the stocks prices.

Strategy for Trading/Transacting the ASX 200 Index

ASX200 will in general move up because stocks prices always move upward over time. This stock index generally moves up over long-term because Australian economy also shows strong and robust growth backed up by their mining sector/industry that has got great reserves of Gold & also 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 stock index trader, stay bullish and buy as the index climbs. Australia's economy often runs strong, so uptrends tend to lead. Smart plays include grabbing dips.

During Economic SlowDown and Recession

When the economy slows down or there's a recession, companies start to report less income, less profit, and worse growth predictions. Because of this, investors and traders start selling shares of companies that report less profit. Because of this, the index that follows these stocks also starts to go down.

Indices often drop during these periods. Traders should tweak their plans to match the falling trend in the index they follow.

Contracts and Specifications

Margin Required Per 1 Lot - AUD 70

Value per Pip - AUD 0.1

NB: Although the general direction is usually upward, if you trade stock indexes, you need to think about how much the market changes every day, because on some days the stock index might not move much or even fall back, and market pullbacks can sometimes be large, so as a trader you need to time your trades precisely when using this plan: trading strategy & also use good money management principles in case the market suddenly becomes unpredictable. About the rules for managing money in stock index lessons: What is stock index money management guidelines/methods & index equity management strategies.

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