FTSE UK Index



For more info on how we might use your data, see our privacy notice and access policy and privacy website. During market hours, it is an elite source of equity-market liquidity and serves as a benchmark for prices and market data across Europe. A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. The broker you select will be your gateway to the market. For further guidance, example charts, patterns, and strategies, see our stocks and strategy pages.

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In , the FTSE exceeded the threshold for the first time — its previous record level was To be included on the FTSE , a company must fulfill several requirements: There is a quarterly review of the Footsie constituents, and if a company fails to meet these conditions, its membership can be revoked. When the FTSE was first launched, it was full of homegrown talent, such as Barclays and Tesco, but it has since become barely recognisable due to mergers, takeovers and companies falling off the bottom of the list.

The largest change has been the still-growing multinational section of the Footsie, which spans more than countries. The FTSE is capitalization-weighted. Although all its constituents rank among the top , their sizes can vary considerably — and on the FTSE size equals influence.

The most valuable companies in the index make more of a difference to the price than smaller companies. Changes are calculated in real time, so, as the share prices of companies move, the price of the FTSE will adjust in response. It is essential for forex traders to understand the importance of the FTSE forecast because it can be a useful indicator in predicting potential price movements of a currency.

Rises and falls in the Footsie reflect events impacting the current UK economy, which can be anything from individual company news to global economic events — examples include the raising of interest rates and domestic politics, such as Brexit.

Find out the fundamentals that look likely to drive future price action. The FTSE is one of the most widely-traded indices in the world. Here are some essential tips on its background, how to approach it, and what moves the index. The start to a new trading year is typically a quiet affair for the markets. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Discover our extensive calendar of free educational webinars and test your trading skills, risk-free, with an IG demo account. A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment.

Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment. To find the free float capitalisation of a company, you will first have to calculate its market capitalisation number of shares x share price.

Once you have that, you multiply by its free-float factor. This means free-float capitalisation will not include restricted stocks. Those held by company insiders, for example. The company list is best described as a football league. Those that decrease in market capitalisation will be relegated, whilst the high performers will be promoted.

Those changes are made each quarter. Changes that are made will be based on company valuations after the close of business the night before reviews will be conducted. The panel that makes the changes consist of independent market experts and announces new entrants. To establish those changes a banding system is used. You must be in the top 90 to be eligible for promotion. To be relegated, you must have dropped to th. Mergers and takeovers are often big reasons behind position moves.

Growth and trends in global markets also have an influence on FTSE risers and fallers. Performance can be seen in real time, with daily updates, plus live updates every 15 seconds during trading hours.

The opening time is The closing value is then taken at It is worth knowing that if sterling falls, many listed companies will actually see their profits increase. This is because they receive more pounds when revenues denominated in foreign currencies are transferred into sterling.

As of early , the index currently rests around all-time highs. This is because global equity stock prices have been pushed higher, firstly by low-interest rates. Interestingly, Brexit has meant the big companies and movers listed in the FTSE are even more global because they need to rely less on the UK domestic economy.

As such, Rentokil Initial was one of the biggest risers to be promoted to the FTSE , benefiting from the drop in the pound. On the flip side, domestic-based householder Berkely became one of the recent FTSE losers and was relegated.

Some of the largest FTSE businesses dominate the index. Shell, for example, currently has a market capitalisation of over million. You will also find banks towards the top of the list, such as HSBC, with over million. Other top contenders include British American Tobacco with around million and BP with approximately million. These are currently the four constituents with over million in market capitalisation.

The combined size of the top four is larger than nearly the rest of the list combined. This is the effect of having a market capitalisation-weighted system. If you want to start day trading the FTSE or to make money, you will need to follow two important steps.

The broker you select will be your gateway to the market. They will facilitate your trades and their trading platform is where you will spend numerous hours a day. However, with so many brokers out there, what should you look for? The broker you select is one of the most important investment decisions you will make. The FTSE is a highly competitive marketplace, so do your homework and check reviews first.

For more guidance, plus comparisons and recommendations, see our brokers list. With such a competitive marketplace at your fingertips, choosing the right stock to day trade will make all the difference to your final profits. Having said that, there are two main attributes to look for in a stock, volume, and volatility. Both will enable you to enter and exit positions quickly, whilst offering the greatest opportunity to turn a profit.

This is simply the total number of shares being traded within a certain period. Each transaction will increase the total volume. So, if only thirty transactions take place today, the volume for the day would be thirty. Volume is an effective quality factor, that gives weight to market moves. If you see a spike in your FTSE live chart, the validity of the move can be gauged by the volume within that period.

The greater the volume, the more substantial the move. The more capital you have, the more you need FTSE stocks with substantial volumes. Your broker may offer you a list of the top stocks. However, expanding that search with a thorough stock screener could make all the difference.

All will collate essential information, including volume, volatility, stock price, and other points of interest. When you load up your live FTSE index in the morning, you should also look for volatility in your stocks. High volatility suggests the value could be spread over a large range of values.

This could be an indicator that the price of the stock could significantly fluctuate in a short period. This provides the switched on day trader with the opportunity to turn a profit.

Stocks with lower volatility will remain steady, offering less profit potential. An effective way of establishing the volatility of a potential FTSE stock is to use beta. For example, a stock with a beta value of 1. Likewise, a stock with a beta of just.

Trading stocks on the FTSE have been around long before futures, options, and bitcoin trading. So, once you have your broker, you will still require an effective strategy to turn a profit. Quite simply, with historical price data to hand, you can better predict future price movements. Technical analysis is a mixture of art and science, and it is a craft that requires considerable patience and experience to master.

For the best chances of success, you need to be up bright and early. Experienced day traders like to be sat at their screen around 30 minutes before the FTSE opens at This allows you time to prepare, by doing the following:. You can then formulate trade setups that present themselves in the aftermath of major news events. Terrorist incidents, plus political and economic stories can all influence the market, particularly when the market opens.

You can use any number of FTSE charts, from 1, 2, and 5 minutes, to 2 and 4-hour charts. All will allow you to assess price action. However, using hour timeframes is often an effective way to assess market sentiment. You can then look for momentum trades, pullback reversals, or you can trade in trend channels and make reversal trades from the top of a trend.

It can often be helpful to plot horizontal lines to pencil in your judgement of the top and bottom of the trending range. Once you have set up the above, you can then concentrate on your 5-minute timeframe chart. Placing four horizontal support and resistance lines on your 5-minute chart is often a good place to start.