You can trade the UK Index in a number of ways. Most commonly, traders and investors will use a derivative instrument to buy/sell the UK Index index as a whole, such as CFDs, options or futures.

Of course, traders could decide to trade the UK Index constituents. The major large-cap, blue-chip stocks such as BP, Shell, Lloyds, BHP constitute a large part of the UK 100 index. However, to buy all stocks in the UK 100 would be impractical and expensive. For this reason, derivative instruments such as CFDs exist to allow traders to buy and sell the whole index at the touch of a button.

Many brokerages provide online trading platforms to allow investors and traders to buy and sell the UK Index index. At Accendo Markets we allow you to trade the UK Index index online, via your desktop or mobile device, using CFDs.

 

When considering how to trade the UK Index , it is important to be aware of your options and the terminology. Commonly the UK 100 , or (a combination of the previous two), an understanding of what constitutes in the UK Index is beneficial. The UK 100 is traditionally an indexing scheme for the 100 biggest companies featured within the London stock exchange and the is an index of the next 250 biggest companies featured. There are in fact many other divisions, as is to be expected given there are well over 350 active companies trading within the London Stock Exchange. Further divisions of UK Index include: the UK Index All-Share (an index of 98%+ of UK businesses capital worth considered acceptable for inclusion), the UK Index AIM UK 50 (an index that uses the 50 top UK companies featured in the Alternative Investment Market), the UK Index SmallCap (an index of the 351^st to 619^th largest businesses in the London Stock Exchange, hence Small market Capitalisation) and the UK Index Eurotop 300 (an index of the top 300 biggest businesses within the UK Index Developed Europe Index) to name a few.

At Accendo Markets, our most commonly traded market is the UK 100 as it provides a good proxy for the UK stock market as a whole. What’s more, the volatility of the UK 100 index is perfect for short term traders.

Your Accendo Markets account manager can show you how to trade the UK Index , and provide options to help you establish the best UK Index trading strategies. The UK Index indices constitute an index of the featured companies within each particular index division. Movements are representative of the combined success or failure of the individual share prices within – think of the index as a ‘basket’ of shares. The management of the indexing is performed by the two owner entities that form the UK Index group – the Financial Times and the London Stock Exchange (hence UK Index ), and are generally considered to be reliable sources. A common misconception is that these indexes are a sign of the current UK economy; this is not strictly the case, as many of the businesses featured do not rely exclusively upon revenue from the UK. Instead, it represents a mixture of international trade relationships dictated by market conditions respective of particular industry sectors.

For those that have learnt how to trade the UK Index , the indices provide an indication of the current state of affairs of these featured businesses, providing a measure of their current relative success or failure, and hence trading opportunities to investors. Significant returns can be generated in favourable conditions, however as with all leveraged trading, it can be risky; you need to be prepared to make a loss if conditions become unfavourable. Fortunately modern technology (e.g. the internet) has made trading the UK Index easier than ever before; the use of online trading platforms means that you can trade at the touch of a button from virtually anywhere.