FTSE (Financial Times and Stock Exchange)
On a typical trading day, you would commonly hear the FTSE referenced as the “footsie”.The FTSE measures the overall market of the shares and index in the United Kingdom. It projects the performance of the London economy. A methodology algorithm is used to compute the value of the companies included on the FTSE list, considered as a best buy in the UK market. It also accounts for the movement of the most capitalized businesses that exists in the London Stock Exchange .
A merger of the Financial Times and the London Stock Exchange (LSX), its joint undertaking began in January 3, 1984. Currently, it is controlled by the FTSE Group.A quarterly check is done to gauge the profitability of business entities at their level of capitalization and share prices, factors that changes over time. This then results to adjustments to the value of the different firms.
The entry criteria considered by the FTSE:
•Purple Book Record: company information, and details of key transactions
•Free Float: the number of shares available to the investing public
Every three or four months, a stringent standard is maintained to keep the list updated, with some taken off, and some companies who have achieved a sizeable growth are added to the record. It also provides investors a comprehensive financial schedule of all capital and industry segments of the UK equity market. The FTSE is structured into different indices.
This is an index of blue chip stocks that makes up 81% of the London Stock Exchange. It is comprised of the top 100 companies that have the largest capital.
This group includes the next 150 companies that did not make it to the top 100. They represent those that are midcapitalized and makes up 15% of the total value of the UK market.
Represents the combination of the blue chip sector of the FTSE 100 and FTSE 250 Indices, together holds 96% of the UK market capitalization.
Consists of those not accommodated to the FTSE 350 and takes up 2% of the UK market.
This is the aggregation of the FTSE 100, FTSE 250 and FTSE Small Cap Indices, which holds 98-99% of UK market capitalization.
How to trade with FTSE
1)Select the underlying asset, Indices, from the list and choose FTSE.
2)Your intuitive aptitude will then be needed to decide if the price will rise (CALL option) or decline (PUT option). You will then be asked to enter an expiry time.
3)Reap a rewarding financial advancement when you employ a trading strategy that suits the dynamic mechanism of binary options.
•The trading hours for FTSE is 8:30 to 16:00 GMT / 3:30 to 11:00 EST, Monday to Friday.