S&P/ASX 200 Index

ASX200 stock index keeps track of top firms in the Australian Stock Market. The total No. of shares & stocks used to calculate this stock index is the top 200 Australian corporations represented in ASX 200. This index is calculated based on the capitalization of included corporations & it's reviewed quarterly.

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

S&P ASX 200 - ASX 200 Index

The ASX200 Chart

The ASX 200 trade chart is displayed and illustrated and shown above. On example illustration revealed above this financial trading instrument is named as AUS200CASH. As a trader you want to search & find a broker that provides this ASX 200 chart so that you can start to trade it. Example displayed and shown above is of ASX-200 on the MetaTrader 4 FX and Index Software.

Other Info about the ASX 200 Index

Official Symbol - AS51:IND

The 200 constituent stocks which constitute ASX200 are chosen from the top Australian corporations measured by capitalization. This stock index has got a particular specified base upon which the sum total market capitalization is adjusted in relation to this base - the calculation formula also has got a divisor which means that the stock index will only reflect a change in the movement only when the stocks prices go up and not when the market capitalization does, therefore, this stock index show the difference in the shares prices rather than the total market capitalization. This is because the base represents the start size of all shares prices and when this stock index is calculated it monitors the total change in the stocks prices.

Strategy for Trading/Transacting the ASX 200 Index

ASX200 will in general move up because stocks prices always move upward over time. This stock index generally moves up over long-term because Australian economy also shows strong and robust growth backed up by their mining sector/industry that has got great reserves of Gold & also other valuable commodities.

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

As a stock index trader you want to be biased and keep buying as the stock index moves and heads upwards. When Australian economy is doing good (most times it is performing well) this upwards trend is more than likely to be the one ruling. A good index strategy would be to buy dips.

During Economic SlowDown and Recession

During economic slowdown & recession times, companies start and begin to report lower revenues, lower profits and lowers growth prospect. It's due to and because of this reason which investors & traders start to sell shares of firms reporting lower profits & hence the index tracking these specific stocks & shares will also start to move and go downward.

Hence, during these times indices trends are a lot more likely to be heading downwards and as a trader you should also adjust your trading strategy accordingly to suit the current down trend of the stock market index that you are trading.

Contracts and Specifications

Margin Required Per 1 Lot - AUD 70

Value per Pip - AUD 0.1

NB: Even though the general trend is in general moves upward, as a stock index trader you've got to factor in the daily market volatility, on some of the days the stock index might move in a range or even pull back, market retracement may also be significant at times and thence you as a trader you need to time your entry strictly when using this strategy: trading strategy & at the same time use the appropriate/proper money management principles & guidelines in case there is unexpected market volatility. About equity management guidelines and rules in stock index tutorials: What is stock index money management guidelines/methods & index equity management strategies.

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