HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

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

Mastering Stock Trading in Diverse Markets: A Deep Dive into Strategies and Nuances

Navigating the vast sea of stock trading is akin to art. The canvas of the stock market, with its myriad colors and shades, showcases a spectrum of opportunities...

Benefits of Becoming a Signal Provider for Copy Trading

As a trader, you may be asking yourself if becoming a signal provider is right for you. Many new traders turn to copy trading as a way to learn from more...

How To Store Bitcoin Safely: Crypto Wallets Explained

Bitcoin is booming once again, and everyone is rushing to learn all they can about the leading cryptocurrency by market cap. One of the biggest challenges Bitcoin and crypto investors face...

How to invest in gold

Many investors are keen on the precious metals market. So many seem to be looking to buy gold - a time-tested, safe-haven asset - especially as COVID-19 continues...

Guide: How To Make Money With Bitcoin In 2021

Bitcoin has been making headlines for over a year, smashing record after record and setting a new all-time high over $60,000. The coin, which rose from virtually worthless...

Ethereum trading in 2020: step-by-step guide

The Ethereum cryptocurrency is an open software platform based on blockchain technology that allows developers to create and release decentralized applications...

Understanding of how to invest in oil

Oil is among the most commonly used commodities in the world, and its price affects the prices of many other commodities, such as gasoline and natural gas...

Understanding What Crypto Trading is All About

The idea of Bitcoin and other cryptocurrencies feels like it has only just been created, but the first instance we see of these digital assets came out around 11 years ago...

What should you do during a crash?

The world of markets can, in some cases, become very difficult, while uncertainty and often a lack of essential knowledge can lead to confusion amongst traders. And a market crash could be one of those situations...

Why Trade Commodities?

Commodities are traded around the world on different exchanges and are usually traded as futures contracts, which is an agreement to...

Position Sizing Using the Risk Reward Ratio

Position sizing involves making an objective decision about...

The Complexities and Nuances of Touch Trading: A Comprehensive Analysis

Touch trading, a strategy employed in the volatile world of forex trading, is a sophisticated approach that requires traders to enter the market at a precise intersection of live price impact with a predetermined price level...

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?

Best Gaming Crypto Coins to Invest in 2023

You may have many unanswered questions about the best gaming crypto. After all, there are so many new games in the pipeline that you need to be aware of...

Most Trending Currency Pairs in 2022

Are you one of the many beginners in online trading who are struggling to understand even the basics of the markets? Don’t worry, we know the feeling. One of the most common reasons why people hesitate to start trading...

Copy Trading Strategies: How to Start Successful Copy Trading

To be a successful copy trader, you need to understand quite a bit of nuance and things to ensure that it is the profitable venture you are hoping for...

Maximize Your Profits in 2022 Through the Best Forex Advisors

Practically all modern Forex expert advisors are built on the foundation of the complex programming language called MetaQuotes versions 4 and 5, which are also used...

How to Use Fundamental Analysis to Profit in Forex

The forex market is the market par excellence for fundamental analysis. Since currencies are the basic building blocks of all...

NEO Price Prediction: Invest or Skip?

NEO isn't the most popular cryptocurrency, especially when compared to Bitcoin, Ethereum, Tether and Ripple. Currently, it's ranked only 26th by CoinMarketCap in terms of market capitalisation...

Trading Ethereum CFDs: What You Should Know

Ethereum is currently the second-largest digital currency by market capitalisation after Bitcoin. There are several things to keep in mind before diving...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 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.