#ForexChief #StockTrading #stock #FTSE100 #CFD #Footsie #FinancialTimes⠀
💱 FTSE 100 index: how useful is a capricious «footsie»⠀
📈 Main UK stock index reflects dynamics of shares of 100 large LSE listing companies. The FTSE 100 (UK 100) represents approximately 80% of the total capitalization of the British market. Index was created by the Financial Times analytical department, composition of participants is determined quarterly.
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Index does not take into account the industry structure, calculation is based on only business turnover of industrial and trading corporations. UK 100 is calculated as a weighted average by capitalization: the larger company, the stronger its dynamics affect index quotes. If the shares of index participants rise in price – then FTSE 100 chart moves up, if they fall − index will also decline. Traders use this trading asset of futures, options, CFD contracts and ETFs for short-term transactions or long-term investments.
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Footsie is considered an active and reliable indicator: if you are confident that the medium-term economic (or political!) prospects of UK are negative − the total value of shares in index decreases, then you can open a short position on FTSE 100. If the fundamental analysis of the British economy is positive − this asset can be profitably bought. Similarly, a direct correlation with the national currency works: index is ahead of GBP/USD dynamics by 1-2 bars, practically does not respond to speculators, confidently «keeps» the medium-term trend. This is a great leading indicator for all UK assets.
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Profits to y’all!