UKX 100 Stock Index
UKX 100 - Financial Times Bourse, UKX 100 represents the index of the top 100 largest companies in UK that are shown in London Stocks Exchange Market. The calculation of this index incorporates stocks that are determined quarterly. These stocks included in the UKX 100 represent 80% of the total market value of the London Bourse shown companies.
Because the UKX 100 stock index tracks 100 firms the index will be more volatile as compared to an stock index such as Germany DAX 30 which only tracks 30 firms.
UKX 100 Chart
UKX 100 trading chart is shown and portrayed & shown above. On the above example the index is named as UKX100CASH. As a trader you want to find an online broker that provides UKX 100 trading chart so that you can start to trade it. The example That is shown above is that of UKX 100 on MetaTrader 4 Platform.
Other Information about UKX 100 Index
Index Symbol - UKX:IND
The 100 component stocks that make up the UKX 100 are selected from top UK firms. The UKX 100 share stock index is closely followed as an indicator of the prosperity of UK businesses. The constituents that make up this stock index are revised quarterly. The calculation of this index is a simple formula based on market capitalization.
Trading System for UKX 100 Stock Index
UKX 100 represents the relative trend movement of the top 100 stocks in UK. In general the share value of the top 100 firms will keep moving upward, hence this index will also over time keep moving upward. Should a company not meet the required growth targets, company will be removed from the index & replaced with another company that has better growth prospects.
As a trader wanting to trade this index, general market direction at any given time will be more bullish than bearish. This is because as long as the 100 firms being tracked are doing good business, then their share value will keep going up, and hence this index will also keep moving in an upward trend.
As a trader you want to be biased & keep buying as the index moves upward. When UK 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, trends are likely to be moving downwards & 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 Specifications
Margin Requirement Per 1 Lot - £ 70
Value per 1Pip - £ 0.1
NB: Even though general trend is generally move upward, as a trader you've 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: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About equity management principles in index topics: What's index money management & index money management methods.
