The FTSE 100 is the main stock index of the UK Stock Exchange and is based in London. The London Stock Exchange comprises the 100 most highly capitalized companies in the UK stock market. The index is managed by the FTSE Group (the same as the FTSE MIB), a company originally set up as a joint venture between the London Stock Exchange and the Financial Times.
The FTSE 100 index accounts for 80% of the entire market capitalization on the London Stock Exchange. So it is significant both for the UK stock market and for its economy of which it is well represented.
To trade the FTSE 100 index you can trade through Plus500.
Among the most important shares included in the FTSE 100 index are Royal Dutch Shell, BP, HSBC, Vodafone, GlaxoSmithKline, Rio Tinto Group, Royal Bank of Scotland, Anglo American plc, British American Tobacco, BG Group, Tesco.
Trading on FTSE 100
If you wish to trade on FTSE 100 online, at home or on your mobile device, you can do so using a CFD or binary options trading platform. For CFDs, they refer to FTSE 100 futures that expire closest to the trading day. Assuming, for example, that you trade on March 5th, the next expiry date will be March 31st. FTSE100 futures have a quarterly maturity (March, June, September, December).
Below is a real-time chart of the CFDs on the FTSE 100 index provided by the broker Plus500. As you can see, clicking “full details” will take you to the description page of this product.
On the page that opens, clicking “Future-ICE” will land you get on this page (link missing). Here you will find information about maturities, quotes and more. This is the official ICE page.
The technical details regarding FTSE 100 futures are important to better understand the type of security you are trading on. Another equally important aspect is the trading platform you trade with. It is important that you present Consob authorization and that it is responsive and simple to use even for those who are just beginning.
How do I trade on the FTSE 100 index?
The difference between CFDs and binary options are pointed out below. CFDs can be used to obtain economic results (profits and losses) in proportion to the price variation of futures in the market. Otherwise, with binary options trading platforms, you can make a profit by predicting the right direction (up or down) of the index price within a predetermined time frame. With binary options, losses are limited to what is invested in a single trade.