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

UK 100 Stock Index Trade Strategy - UK 100 Index 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 as you as a trader can start to trade it. The example Which is displayed above is that of UK 100 on MT4 Platform Software.

Trade Strategy for UK 100 Index

UK100 shows relative trend 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 stock index also will over time keep moving upwards. Should a company not meet required business growth targets, the 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 one 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 upwards trend.

As a trader you want to be biased and keep buying as the index moves upwards. When UK economy is performing well (majority of the times it's performing good) this upward 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 growth prospects. It is because of this reason that traders start to sell stocks of corporations that are announcing and recording lower profits and hence index tracking these particular stocks will also start to move downward.

Hence, during these times, market trends are a lot more 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(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 days the stock index may move in a range or even pull-back, market pullbackretracement might also be significant some times & hence as a trader you need to 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 & stock index money management methods.

Get More Lessons and Topics:

Trade Stock Indices

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

UK 100 Chart

Trade Strategy for UK 100 Index

During Economic Slow-Down and Recession

Contracts Specs