{"id":7649,"date":"2022-02-20T18:09:09","date_gmt":"2022-02-20T16:09:09","guid":{"rendered":"https:\/\/learnfxtrading.net\/app\/?p=7649"},"modified":"2022-02-20T18:09:11","modified_gmt":"2022-02-20T16:09:11","slug":"how-to-trade-ftse-100","status":"publish","type":"post","link":"https:\/\/learnfxtrading.net\/app\/how-to-trade-ftse-100\/","title":{"rendered":"How To Trade FTSE 100"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\"><strong>What Is FTSE 100?<\/strong><\/h4>\n\n\n\n<p><strong>FTSE 100 <\/strong>(pronounced &#8220;Footsie&#8221;) or <strong>UK100<\/strong> is an<strong> index<\/strong> that comprises of 100 largest companies by market cap that are listed on the <strong>London Stock Exchange.<\/strong> <strong>London Stock Exchange<\/strong> (LSE) opens from Monday to Friday at 8am-12pm and they take a lunch break and continue until 4:30pm. <strong>FTSE 100<\/strong> was launched on the 3rd of January 1984. Many of these companies are international and are affected by the exchange rate of the British Pound.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What is stock index trading?<\/strong><\/h4>\n\n\n\n<p><strong>Stock index<\/strong>&nbsp;trading is when you are trading a basket of&nbsp;<strong>stocks<\/strong>&nbsp;which makes up an&nbsp;<strong>Index<\/strong>. You can do that on your&nbsp;<strong>Forex&nbsp;<\/strong>trading platform and do it through an instrument such as <strong>FTSE 100.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Advantages of trading stock indices<\/strong><\/h4>\n\n\n\n<ul><li><strong>Stock indices<\/strong>&nbsp;have generally higher returns than the&nbsp;<strong>stock market<\/strong>&nbsp;they represent.<\/li><li>The&nbsp;<strong>Volatility<\/strong>&nbsp;is reduced as compared to&nbsp;<strong>currencies.<\/strong><\/li><li><strong>Stock index&nbsp;<\/strong>trading requires less research as opposed to trading \/investing in&nbsp;<strong>individual stocks.<\/strong><\/li><li>When trading a&nbsp;<strong>stock index<\/strong>&nbsp;e.g.&nbsp;<strong>Ftse100<\/strong> you do not have to spend weeks analyzing all the companies under this umbrella but what you can do is follow&nbsp;the&nbsp;<strong>instrument&nbsp;<\/strong>as you would do analyzing your&nbsp;<strong>currencies.<\/strong><\/li><li><strong>Stock index trading<\/strong>&nbsp;does not require any traditional stock<strong>&nbsp;brokerage<\/strong>&nbsp;where you pay high fees, you can&nbsp;<strong>buy<\/strong>&nbsp;and&nbsp;<strong>sell<\/strong>&nbsp;on the same&nbsp;<strong>Forex<\/strong>&nbsp;trading platform as you would do with your&nbsp;<strong>currencies<\/strong>&nbsp;and it is a cheaper alternative to trading the actual stock.<\/li><\/ul>\n\n\n\n<p>There are different&nbsp;<strong>markets<\/strong>&nbsp;that one can focus on. I have published a blogpost on the <a rel=\"noreferrer noopener\" href=\"https:\/\/learnfxtrading.net\/trading-the-u-s-markets\/\" target=\"_blank\"><strong>U.S markets<\/strong>&nbsp;<\/a>and this one is about the <strong>London markets.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Why Is FTSE 100 Important?<\/strong><\/h4>\n\n\n\n<p>Most companies invest their funds in the equity markets. <strong>FTSE 100<\/strong> is used to measure the performance of the overall equity market in the UK because it lists the top 100 companies which affect the <strong>stock markets.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Some Of The Companies On FTSE100<\/strong><\/h4>\n\n\n\n<ul><li>Anglo American (mining)<\/li><li>Avast (software &amp; computer software)<\/li><li>Barclays (banks)<\/li><li>BP &amp; Shell (oil &amp; gas producers)<\/li><li>Coca Cola (Beverages)<\/li><li>Mondi (forestry &amp; paper)<\/li><li>Unilever (personal goods)<\/li><li>Vodafone Group (mobile telecommunications)<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What Economic Factors Influence FTSE 100?<\/strong><\/h4>\n\n\n\n<p>The release of <strong>UK GDP<\/strong>, <strong>Interest Rates<\/strong> and <strong>Manufacturing <\/strong>data.<strong> CPI<\/strong> also does affect it up to a certain level because<strong> CPI<\/strong> influences the <strong>Central Banks monetary policy <\/strong>and <strong>rate<\/strong> decision. Higher <strong>CPI<\/strong> leads to <strong>rate hikes<\/strong> while lower <strong>CPI <\/strong>may lead to <strong>rate cuts<\/strong> which has a direct impact on <strong>FTSE 100.<\/strong><\/p>\n\n\n\n<p>Thank you for reading. I hope you&#8217;ve learned something from this post. Should you need lessons on how to trade <strong>FTSE 100<\/strong> and other financial instruments including currencies, feel free to WhatsApp me on <strong>+27 78 144 6851.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><\/h4>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Is FTSE 100? FTSE 100 (pronounced &#8220;Footsie&#8221;) or UK100 is an index that comprises of 100 largest companies by market cap that are listed on the London Stock Exchange. London Stock Exchange (LSE) opens from Monday to Friday at 8am-12pm and they take a lunch break and continue until 4:30pm. FTSE 100 was launched [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[7],"tags":[157,339,226],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/learnfxtrading.net\/app\/wp-content\/uploads\/2022\/02\/mark-g17b9b7c35_640.jpg?fit=640%2C452&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/pbXWFt-1Zn","_links":{"self":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/7649"}],"collection":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/comments?post=7649"}],"version-history":[{"count":3,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/7649\/revisions"}],"predecessor-version":[{"id":7653,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/7649\/revisions\/7653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/media\/7650"}],"wp:attachment":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/media?parent=7649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/categories?post=7649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/tags?post=7649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}