S&P/AS51 Index

AS51 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 AS51. 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.

Strategies for Trading/Transacting AS51 Index - AS51 Index

AS 51 Chart

AS51 trading chart is displayed and illustrated and shown above. On the example shown above this trading instrument is referred to & known as as AS51CASH. As a trader you want to find a broker who offers AS51 chart so that you as a trader can begin & start to trade it. The example That's displayed above is that of AS 51 Index on MT4 FX & Platform Software.

Other Information about AS51 Index

Index Symbol - AS51

The 200 component stocks which make up the AS51 Index are chosen from top Australian corporations measured by capitalization. This index has got a known base - a base - a base upon which the calculated total market capitalization is adjusted relative to this base - the calculation formula also has got a divisor which means that 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 keeps track of the total change in the stocks prices.

Strategy for Trading/Transacting AS51 Index

AS51 Index will in general move up because shares prices always move upward over time. This stock index in general moves upward 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 XAU USD & also other valuable commodities.

As a trader wanting to trade this index, stock index will move upwards 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 upward. When Australian economic environment is doing & performing well and good (most of the times it is doing well) this upward trend is 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 recording and announcing lower profits and hence stock index monitoring these specific stocks also will begin moving and heading downward.

Therefore, during these times index trends are much more likely to be heading & going down & as a trader you should also adjust the trading strategy you're using accordingly to fit and suit the current downwards trend of the stock index that you're trading.

Contracts & Specs

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 index trader you've got to factor in daily market volatility, on some days the index may move in a range or even retrace, market retracement might & may also be significant some times and hence you as a trader you need to time your entry precisely when using this trade strategy: Stock Index trade strategy and at the same time use the proper and appropriate money management methods & guidelines in case there's more unexpected volatility in the market. About money management guidelines in index topics: What's index money management principles and guidelines & money management techniques.

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