What is UK-100 Trade Strategy? - Learn UK 100 Stock Index

UK 100 Stock Indices Strategy - UK 100 Stock Indices Strategies How to Create Stock Index Strategies for UK 100 Guide Download

UK 100 Chart

UK 100 chart is illustrated and displayed and portrayed above. On above example the stock index is named as UK100CASH. As a trader you want to find an online broker that provides UK 100 chart so that you as a trader can start to trade it. The example Which is shown above is that one of UK 100 on MT4 Platform Software.

Trade Strategy for UK 100 Index

UK 100 shows relative trend movement of the top 100 stocks in UK. In general the share value of the top 100 companies will keep heading upwards, hence this stock index also will over time keep moving upwards. Should a company not meet the required growth targets, company will be removed from the stock index & replaced with an alternative company that has better growth prospects.

As a trader wanting to trade this stock index, general direction at any given time will be more bullish than bearish. This is because as long as the 100 companies being tracked are doing booming business, then their share value will keep moving upward, and hence this index will also keep moving in an upward trend.

As a trader you want to be biased and keep buying as the index moves upwards. When UK economy is performing well (most times it's performing good) this upwards trend is more likely to be in place. A good index trade strategy would be to buy dips.

During Economic Slow-Down and Recession

During economic slow-down and recession times, corporations start to report lower profits and lower business growth prospects. It's due to this reason that traders start to sell stocks of corporations that arereporting lower profits and hence index tracking these particular stocks will also start to move downward.

Hence, during these times, market trends are likely to be moving downward and 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 Specs

Margin Requirement Per 1 Lot - £ 70

Value per 1 Pip - £ 0.1

NB: Even though general trend is generally move upwards, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may move in a range or even pullback, market pullbackretracement might also be significant at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About equity management principles in stock index lessons: What's money stock indices management and stock index money management methods.

Get More Lessons & Topics:

Trade Stock Indices

What is UK-100 Trade Strategy? - Learn UK 100 Stock Index

UK 100 Chart

Trade Strategy for UK 100 Index

During Economic Slow-Down and Recession

Contracts Specs