FTSE 100 Trading

Trade the UK’s leading FTSE 100 index. Go long or short and benefit from advanced trading tools

Trade FTSE 100

The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalisation. These companies are blue chip companies, and the index is seen as a good indication of the performance of the UK economy.

The FTSE is heavily tied to the UK economy, which is one of the top performing economies globally, and as such has seen much growth and potential for further growth as the UK has expanded.

Trading the FTSE 100 on PrimeXBT is both easy to do for novice traders and those new to stock indices, but equally powerful for experienced traders who can take advantage of the built-in trading software and advanced trading tools.

Why trade FTSE 100 with PrimeXBT

  • Easy to startStart trading in minutes with quick and easy registration procedure, and low minimum deposit
  • Low trading feesSave on fees! Benefit from PrimeXBT’s low commission rates and tight spreads while trading all available assets
  • Secure tradingEnjoy PrimeXBT’s security features that will ensure your personal data and funds are always safe.
  • Best-in-class trading platformPrimeXBT’s award-winning software offers traders a variety of professional trading tools. Access cryptocurrencies, stock indices, commodities, and forex from a single account!
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How does FTSE 100 margin trading work?

PrimeXBT allows you to trade the FTSE 100 on margin which is a useful way to try and enact more potential profit without having to use too much personal capital. When margin trading, the trader will not have to invest the full amount of the position value but rather will borrow from PrimeXBT and use the margin as insurance.

This can lead to potentially bigger profits on FTSE 100 trades as the position is bigger than the deposit of the trader, but it is also risky as the losses for a trade that goes the other way can also mean higher losses than expected.

The benefits of FTSE 100 trading with leverage

  • Magnified profitsMargin trading is known for its ability to make larger trades compared to deposited amounts. Margin trading is one of the most effective ways to increase potential returns
  • DiversificationMargin trading means there is more available traders' capital left on the account which can be used to open new positions. Diversification allows to reduce market risk.
  • Gaining from the market fall.Margin trading also allows traders to open long and short positions in order to profit from both growing and falling market.

FTSE 100 leverage trading example

For example, If a trader takes a long position of $2,000 on the FTSE 100 and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.

Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.

Normal trade
Leveraged trade with PrimeXBT

How to start trading FTSE 100

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What is FTSE 100?

The FTSE 100 is an index that traces the top 100 companies listed on the London Stock Exchange, and was launched and maintained as a partnership between the LSE and the Financial Times. The FTSE 100 is by far the most widely recognised measure of the health of the UK stock market.

The FTSE 100 is comprised of securities from all industries, and the value of the 100 companies in the FTSE 100 accounts for roughly 81% of the total value of all companies listed on the London Stock Exchange.

FTSE 100 History

The FTSE 100 was launched in January 1984 with a base level of 1,000, with the index trading today at over 7,300 points. Other related indexes are the FTSE 250, which is made up of the next 250 largest companies following the FTSE 100, and the FTSE 350, which is an aggregation of the FTSE 100 and the FTSE 250.

The FTSE 100 has grown over time to become arguably Europe’s pre-eminent stock index, and has cemented its place as one of the leading stock averages throughout the global financial market. The FTSE 100 is composed exclusively of blue chip stocks.

FTSE 100 Index composition

The FTSE 100 is composed of the largest companies listed on the London Stock Exchange, and this includesrepresentation from sectors including financial services, mining, food producers, pharmaceuticals, life insurance,tobacco, real estate and chemicals.

Being that London is a global hub for commerce and finance it is no surprise that many of the largest brands in theworld are included in the FTSE 100, including Coca Cola, Barclays, BHP, Burberry, GlaxoSmithKline, Imperial Brands,and Royal Dutch Shell.

Top 10 companies represented by FTSE 100 and their Index weighting

CompanyIndex Weighting (%)
HSBC Hldgs7.13
Royal Dutch Shell6.3
BP5.85
Royal Dutch Shell5.18
AstraZeneca4.53
Diageo4.23
GlaxoSmithKline4.14
British American Tobacco3.36
Rio Tinto2.87
Unilever2.86
*information as of May 2020

Why is the FTSE 100 Index important to traders?

The London Stock Exchange is one of the largest and most well-known stock exchanges in the world and was originally founded in 1571, making it also one of the oldest stock exchanges. Traders have long flocked to investing in the FTSE 100 because of its strong and consistent performance over time.

Many of the world’s leading brands, firms and institutions are included in the FTSE 100, and FTSE 100 futures and options provide access to 100 of the biggest global companies with the use of a single instrument.

How is FTSE 100 calculated?

The FTSE 100 is a free float-adjusted, market-capitalization-weighted index. What this means is that the amount of a stock that is “floating”, or the number of shares publicly available for trading, determines the impact it has on the value of the index.

As well as this, being market-capitalization-weighted means that the index value is first calculated by multiplying the total value of their outstanding shares by each of the securities’ last sale prices, and then weighting that in relation to the size of each of the other securities in the index.

Why trading FTSE 100 makes sense

The FTSE 100 is a stock index rather than a single company stock which means that the growth of the index is pushed along by a hundred companies. For traders, this means the risk is mitigated as one company’s poor performance won’t impact the index too much, and when there is a growth in macroeconomic factors, most of the top companies will benefit together.

PrimeXBT’s ultra-fast order execution and its stable, reliable trading engine ensures the tightest spreads and best trading experience. The trading platform is packed with advanced trading tools, such as long and short positions, advanced order types such as stop loss and take profit orders.

The platform is also safe, secure, and offers 24/7 customer support service via a live chat, community channels, and much more.

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