FTSE 100
— Analysis & Guide.
The Financial Times Stock Exchange 100 Index, representing the 100 largest companies listed on the London Stock Exchange by market capitalisation.
Key Trading Facts
Trading Hours
08:00 - 16:30 GMT
Typical Spread
1.0 - 2.0 points
Contract Size
£10 per point
UK Leverage
1:20 (UK Retail)
What is FTSE 100?
FTSE 100 (UK100) is a critical instrument in the index market. Whether you're a day trader or a long-term investor, understanding the price action of this asset is essential for navigating the global financial landscape.
At its core, FTSE 100 reflects the collective sentiment of market participants toward the underlying economic factors of the respective companies or commodities.
What drives FTSE 100?
UK Economic Health
This is a major fundamental catalyst for FTSE 100 price action, causing significant volatility when data deviates from market expectations.
Commodity Prices (Mining/Energy heavy)
This is a major fundamental catalyst for FTSE 100 price action, causing significant volatility when data deviates from market expectations.
GBP Strength (Inverse correlation)
This is a major fundamental catalyst for FTSE 100 price action, causing significant volatility when data deviates from market expectations.
Global Market Sentiment
This is a major fundamental catalyst for FTSE 100 price action, causing significant volatility when data deviates from market expectations.
Expert Trading Tips for FTSE 100
- Highly correlated with the price of Oil and Copper due to its heavy weighting in mining and energy stocks.
- Often acts as a defensive play compared to the more volatile US indices.
- Best traded during the London open (08:00 GMT).
Common Mistakes to Avoid
Over-Leveraging during Volatility
Many beginners in FTSE 100 trading make the mistake of using maximum leverage when volume is highest, leading to rapid account depletion during minor pullbacks.
Ignoring the Economic Calendar
Trading FTSE 100 right before a major news release without a protective strategy is gambling, not trading. Always be aware of scheduled catalysts.