| Updated: October 30, 2024You will learn about the following concepts
- Introduction to FTSE Index
- Popular companies included in the FTSE
- Factors with impact on the index
FTSE 100 is another index that is preferred by many traders. It represents 100 of the London stock exchange companies with the largest market capitalization. As you can already tell, this is the British stock index, so it is mainly preferred by binary traders based in the UK or by traders who closely follow conditions in the UK economy and companies.
FTSE 100 provides traders with compressed and detailed information about the majority of assets on the British market. Many traders prefer the FTSE 100, because this asset is less risky than ordinary stocks. The reason for this is that its value is rarely influenced by the state of just one company. In order to see drastic changes in the value of the FTSE 100, the entire UK economy would have to face a serious expansion or crisis.
Some of the most popular companies included in the FTSE 100 are the British Petroleum, HSBC, Vodafone Group, Tesco, Unilever and Royal Dutch Shell. These companies are recognized worldwide, but the index consists of many other companies which are not so popular outside the UK. This is why trading the FTSE 100 is only recommended to traders who are familiar with UK economy and corporate climate.
Trading the FTSE 100
This stock index is the second most traded among the indices worldwide. It is often called the Footsie, so you should not be surprised if you see it under this name. Trading FTSE 100 binary options is not difficult, especially if you have decent knowledge in fundamental & technical analysis. Reading the data that is important for the FTSE 100’s value can be complicated in the beginning, but as soon as you get the hang of it, you will see that trading stock indices is completely understandable and also quite profitable.
There are several major factors that have a considerable impact on the value of the FTSE 100. Let us present some of them:
- Regular UK Earnings Report
- Mergers
- Acquisitions
- Employment Data
Mergers & acquisitions usually have a higher impact when they concern companies included in the FTSE 100. If you are planning on trading FTSE 100 binaries, then you must be prepared to keep a close eye on the latest news regarding British companies included in the stock index. Creating a profound trading plan as well as a good money management strategy will certainly lead to success. So, if you are looking to add something new to your trading portfolio, the FTSE 100 may be an appropriate choice for you.