FTSE 100 INDEX
Instrument- FTSE 100 INDEX
Minimum spread- 0.2
Typical spread- 1.8
Minimum nominal trade size- 1000
Overnight interest (annual) sell- -0.60%
Overnight interest (annual) buy- -0.1.70%
Trading hours (GMT) – 24*5
FTSE 100 Trading
The UK Financial Times Stock Exchange 100 is an index of share prices of the largest 100 companies listed on the London Stock Exchange (LSE) by market capitalisation. The index was launched on January 3, 1984 at a base value of 1000, and the index level is calculated in real-time.
Understanding the FTSE 100 INDEX
The FTSE 100 is a market-weighted index whereby individual share prices are weighted to give rise to an index level that people see in the market.
The index being free to float essentially means it only takes into account the shares held in public hands and not restricted shares held by company’s insiders or government holdings. That said each company listed in the index is allocated an adjustment factor depending on the number of shares publicly traded.
To be included in the index, a company must meet a number of requirements set out by the FTSE Group, including having a full listing on the London Stock Exchange with a sterling or Euro denominated price on the Stock Exchange Electronic Trading Service, and meeting certain tests on nationality, free float, and liquidity.
Factors to keep in mind while trading FTSE 100 INDE
- K Earnings Session
The FTSE 100 is known to move up and down on huge volume during earnings sessions. The index tends to move higher on earnings report of the listed companies turning out positive. The reverse is also true. Over the years, the index has proved to be vulnerable more so to earnings reports of top banks in the U.K, as they provide a clear insight as to how the overall economy is doing.
- Eurozone Politics
The European Union being the United Kingdom biggest trading partner has also proved to have a significant impact on the performance of the Index. Adverse economic situations in the trading block most of the time triggers a sense of fear in the market which affects the performance of most stocks consequently leading to FTSE underperformance.
- Economic Releases
Economic Releases tend to have an impact on various companies most of which are listed in the index, conversely affecting the FTSE 100 direction of trade. Some of the reports include interest rate hike decisions, Manufacturing data as well as UK GDP Data.
Why trade in FTSE 100 INDEX with CAPITAL STREET
- BROAD RANGE OF MARKETS- Access to the popular Forex markets, including major, minor and exotic pairs
- CSFX offers you our state-of-the-art platforms and range of trading tools
- Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
- Automate your trade facilities and direct access to the market
- Safety of funds