What is UKX 100 Trade Strategy? - Learn Trading UKX 100 Index

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 stock example above is of UKX 100 on MT4 Platform.

Indices Trade Strategy for UKX 100 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 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 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 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 stock indexes trading topics: What is stock index trading money management and stock indexes trading money management methods.