UKX 100 Stock Index
UKX 100 - Financial Times Stock Exchange, UKX 100 represents the Stock index of the top 100 largest companies in UK that are displayed in London Stock Market. The calculation of this index incorporates stocks which are determined quarterly. These stocks included in the UKX 100 represent 80 % of the total market value of London Stock Exchange displayed companies.
Because the UKX 100 index tracks 100 companies the index will be more volatile as compared to an index such as Germany DAX 30 which only tracks 30 companies.
The UKX 100 Trade Chart
The UKX 100 trade chart is displayed & illustrated and shown above. On the example above the index is named as UKX100CASH. As a trader you want to find an online broker that provides UKX 100 trade chart so that you can begin to trade it. The example above is of UKX 100 on MT4 Platform.
Other Information about UKX 100 Index
Index Symbol - UKX:IND
The 100 components stocks that make up the UKX 100 are selected from the top UK companies. The UKX 100 share index is closely followed as an indicator of the prosperity of UK businesses. The constituents that make up this index are revised quarterly. The calculation of this index is a simple formula based on market capitalization.
Indices Trade System for UKX 100 Stock Index
UKX 100 shows relative movement of the top 100 stocks in UK. In general the share value of the top 100 companies will keep moving upwards, therefore this stock index will also over time keep moving upwards. 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 index market direction at any given time will be more bullish than bearish. This is because as long as the 100 companies being tracked are doing good business, then their share value will keep going up, & therefore this stock index will also keep moving in an upwards trend.
As a trader you want to be biased & keep buying as the index moves upward. When UK economy is doing well (most times it is doing well) this upwards trend is more likely to be ruling. A good index trade strategy would be to buy dips.
During Economic Slow-Down & Recession
During economic slow-down & recession times, companies begin to report lower profits & lower business growth prospects. It is because to this reason that investors begin to sell stocks of companies reporting lower profits & therefore index tracking these particular stocks will also start to move downward.
Therefore, during these times index trends are likely to be moving downwards & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you're trading.
Contracts Specifications
Margin Requirement Per 1 Lot - £ 70
Value per 1 Pips - £ 0.1
NB: Even though general trend is generally upward, as a trader you've to factor in daily market volatility, on some days the index might oscillate or even retrace, index market retracement may also be significant at times & therefore as a trader you need to time your entry precisely using this trade strategy: Indices trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index topics: What is index money management and stock index trading money management methods.
