S&P/AS51 Stock Index

AS51 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 AS51. This stock index is calculated based on capitalization of the included companies and it is revised quarterly.

Even though this stock index is calculated based on capitalization, it does not track capitalization: it tracks the change in stock prices of various components stocks in this stock index.

Strategies for Trading AS51 Stock Indices - AS 51 Stock Index

AS51 Chart

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

Other Information about AS51 Stock Index

Index Symbol - AS51:IND

The 200 component stocks that make up the AS51 Index are selected from top Australian companies measured by capitalization. This index has a base up on which the calculated total market capitalization is adjusted relative to this base - the calculation also has a divisor that means that this stock index will only reflect a change in movement only when the shares prices move up & not when market capitalization does, hence, this stock index show the difference in the shares prices rather than the total market capitalization. This is because the base represents the starts value of all shares prices and when this stock index is calculated it tracks the total change in the shares prices.

Strategy for Trading AS51 Index

AS51 Stock Index will in general moves move up because shares prices always move upwards over time. This stock index in general moves upward over the long-term because Australian economy also shows strong growth backed by their mining sector which has great reserves of XAUUSD as well as other valuable commodities.

As a trader wanting to trade this index, stock index will move upward faster when the Australian economic indicators show accelerated economic growth.

As a trader you want to be biased & keep buying as the index moves upward. When Australian 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 dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, firms begin to report lower profits and lower business 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 times index trends are likely to be moving downwards and as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.

Contracts & Specs

Margin Requirement Per 1 Lot - AUD 70

Value per 1Pip - AUD 0.1

NB: Even though general trend is generally move upward, as a stock index trader you have 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 at times and hence as a trader you need to time your trade entry precisely when using this trade strategy: Indices 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 in stock index topics: What's index money management & money management strategies.

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