UK100 – Trade the UK100
The UK100 – or Financial Times Stock Exchange (FTSE) 100 – is one of the most popular stock market indices in the world for traders. The liquidity and volatility of the UK100 index allows it to present traders with dynamic opportunities for speculating on the UK100 price with contracts for difference (CFDs), without owning any underlying assets.
What is the UK100 index?
The UK100 index is a capitalisation-weighted share index that comprises 100 companies listed on the London Stock Exchange with the largest full market value. Founded in 1984, the UK100 index has since superseded the FT30 index as the foremost benchmark of UK equity.
For traders, the UK100 index can provide an insight into the health of the wider UK economy – representing around 80% of the value of the UK market on the London Stock Exchange. There is also an intricate relationship between the UK100/GBP for prospective traders to be aware of.
How does the UK100 index work?
Trading on the UK100 index is open on week days between 8am until closing values are issued at 4.30pm. During these hours, the index is calculated in real time and updated every second – making it an extremely liquid market index in which traders can long or short their position(s).
With many of the listed companies earning from overseas business/operations, the UK100/GBP relationship is often inverted. If GBP sterling weakens on the currency markets, the UK100 can often strengthen due to the increased profitability of revenues earned overseas e.g. in USD.
What drives the UK100 price?
Factors that can impact and drive the UK100 price are varied, and can include:
− The weightings of individual companies listed on the UK100 index
− UK economic performance, as well as other closely aligned economies e.g. eurozone
− UK government fiscal policy
− Bank of England interest rates and inflation reports
The real-time UK100 chart on this page can provide prospective and current traders with the ability to spot existing trends in this fluid stock market – and opportunities for strengthening their position. Updated to reflect the most current UK100 conditions, this chart should not be used as a guarantee for future performance – but is available to traders around the world.