HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Trading the FTSE All Share Index


The London Stock Exchange (LSE) is one of the oldest and most important financial institutions in the world, and in case you have heard of the FTSE All Share Index but not known what it is, here is your answer: it is an aggregation of the FTSE 100, 250 and SmallCap Index, covering approximately 620 of the top companies on the LSE.

Two very popular indices are the FTSE 100 Index (Financial Time Stock Exchange 100 Index), which is the share index of the top 100 companies by market capitalisation on the LSE, and the FTSE 250, which represents the share index of the next 250 (101-350) companies by market cap. Additionally, there are other well-known share indices including the FTSE SmallCap Index (companies ranked 351-619 by market cap).

A share index or stock market index is basically a measurement of a specific section of the stock market, i.e. the top 100 companies or, in the case of the FTSE All Share Index, over 600 of the UK’s top companies. Each listed company’s shares will rise and fall over the day’s trading on the LSE, and the aggregated total is continuously calculated against the previous day’s close. When a share index is quoted up or down, it is measured against the previous day’s closing total.

Trading on indices is a popular means of investment, which can offer opportunities for short-term and long-term investing, while giving investors exposure to many companies and many factors.

FTSE All Share Index Broader than FTSE 100


Companies listed on the FTSE 100 are estimated to represent around 80% of the market capitalisation of the LSE, which is comprised of over 2000 PLCs. For that reason, each company doesn’t move the FTSE All Share Index equally. For example, one of the largest FTSE 100 constituents like BP will have a weighting of 4.89% and a relatively small sized FTSE SmallCap constituent like Charles Taylor has a weighting of just 0.01%. In simple terms, if BP’s stock rises it will have a bigger impact on the index’s price than those smaller companies at the bottom.

Because of those weightings, the FTSE All Share Index tends to historically mirror the performance of the FTSE 100 due to the influence of those blue-chip stocks. However, the blue-chip companies’ weightings are slightly more diluted than with the FTSE 100, so the price moves of the extended index is less dependent upon them.

For example, while BP has a 4.89% weighting on the FTSE All Share Index, it has a 6.05% weighting on the FTSE 100 Index, making it more influential. That essentially means that if your indices trading strategy is based on the fortunes of big companies, opt for the FTSE 100; if you want a broader range, invest in the FTSE’s All Share Index. 

Online Trading Opportunities on Blue-Chip Stocks


Index trading can have plenty of benefits, and major share indices like the FTSE 100 and Dow Jones have seen record highs recorded in the last couple of years. However, the UK stock exchange is often cited as a “stock pickers” market, as the FTSE indices are only now eclipsing the highs seen before the 2007-08 financial crisis. That means some experts advise that you should trade individual stocks, such as those available for online trading at GMOTrading, including:

Indices offer traders a slice of a market, which could be more interesting than choosing to invest in one stock or another narrow market. GMOTrading offers indices trading via CFDs, which lets you trade on the direction the index will go without your needing to deal with buying and holding the index outright. Furthermore, when trading indexes CFDs, you can avail yourself to leverage, which gives you more power behind your trades, though that power can become a greater risk as well.

Think trading on indices, such as the FTSE All Share Index, sounds appealing? Open an account, register, and see if trading CFDs on indices is for you. GMOTrading has a wide choice of indices to trade, as well as forex pairs, cryptos, commodities and stock share CFDs. Plus, we have some of the best account managers found anywhere, a rich education center, and the most popular funding methods. To find out more, open an account today.

#source


RELATED

How Panic Works In Stock Markets And How To Deal With It

We can recall dozens of examples of panics in the markets when in a few trading days with a loud chuckle whole states went into the mire of market volatility...

APR vs. APY in Crypto: A Comprehensive Guide

Cryptocurrency investments have become increasingly popular in recent years, attracting investors from all walks of life. As the crypto market continues to grow and evolve...

Is EOS A Good Investment? Top Altcoin Insights For 2021

The cryptocurrency market is filled with innovation and ambition, where projects aim not just to be platforms for developers to build on, but full-scale ecosystems that can...

Copy trading: tap into the knowledge of top-performing traders and earn money

To be a successful Forex trader, you need to have extensive experience and knowledge of financial markets. But what if you are a novice trader who is just getting started?

Earnings Season & Its Significance for the Stock Market

Earnings season for the first quarter of 2022 is upon us. Here’s what you need to know and what to expect from the markets during this period. Earnings season refers to the period...

How to make money on meme stock?

Meme stocks are shares that gained popularity and achieved a cult-like following on social media. As a result, private investors in online communities can create hype and influence the price of individual shares...

Libertex: How to invest in crude oil

Crude oil prices are affected by perceived shortages, excess supply and weather conditions, among other things. In addition, the price of oil is often considered one of the main benchmarks...

Deep-Dive With Us: What Is Tron?

What comes to mind when you think of the word "Tron?" For some, it's a cheesy 80's movie. For others, it's a promising blockchain platform. In today's article, we'll take a look...

Trading Guide to TSLA: NASDAQ - All You Need to Know About Tesla

Tesla is regarded as one of the most visionary and innovative tech companies of our time. Here’s everything you need to know about TSLA, including company history...

Leveraged ETFs: Worth It or Not?

Leveraged Exchange-Traded Funds or leveraged ETFs aren't new to individuals or institutional investors. In fact, they're becoming one of the most popular types...

WETH vs. ETH: What’s the Difference?

Ethereum (ETH) and Wrapped Ethereum (WETH) are two digital assets that have become increasingly popular in the world of decentralized finance (DeFi). While both assets share many similarities...

How not to fall prey to the Black Swan

The black swan is a sudden unpredictable event with enormous consequences - this is a brief description of this term, which became widespread...

Crypto CFDs: A Guide to a Safer Cryptocurrency Trading Approach

The unprecedented rise of cryptocurrencies has grabbed the attention of both novice and seasoned investors. While many venture into direct trading of cryptocurrencies...

Markets.com: Thousands of markets to trade

With Markets.com you can trade every market twist, turn and trend with a vast range of assets, including our thematic Blends, weighted baskets of stocks focused...

How Options Expiration Can Change How You Trade

Forex trading can be a very profitable venture, but it can also be quite dangerous. One of the risks you take when trading forex is the risk of options expirations...

Stocks CFDs That Could Get a Boost on Black Friday

As the busiest shopping season of the year approaches, consumers are getting ready to open their wallets and swipe their cards away. However, this season is not only...

Steps on how to trade Cryptocurrency in 2020

Every country has its own paper or fiat currency which is usually printed and controlled by the national or central bank. This is why forex transactions are important...

Oscillating Indicators - Slow Stochastic

The slow stochastic is an oscillating indicator. Developed by George Lane , it can alert you to a shift of investor sentiment from bullish to bearish or vice versa...

All About Cardano: A Crash Course

Cardano has been one of the best attempts to solve two problems that BTC fails to achieve: scalability and network scalability. But are good intentions...

What is the Bitcoin Fear and Greed Index?

As a cryptocurrency trader, you will eventually encounter the “Crypto Fear and Greed Index.” This article explores this valuable tool, provides insights on how to utilize it, and outlines its significance...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.