This is because the index is known for being slightly more stable, in comparison with other more volatile assets, and these types of stocks can generally provide profitable returns over a longer period of time. However, some traders prefer to stick with short-term strategies, such as day trading.
As the FTSE consists of a large number of stocks, there may be less internal volatility. For example, if the performance of one stock declines, there are still 99 other stocks to help to offset risk. Therefore, traders can read and interpret price action on a price chart, and day trading can be a rewarding strategy for experienced traders who are familiar with the FTSE However, the FTSE can still fluctuate rapidly in price due to external events, such as the political and economic instability of the country.
Companies that are listed on the FTSE have some of the largest market capitalisations in the world and are leaders within their respective industries.
This highlights the magnitude of the index, along with its share price, which can rise along with its valuation. The FTSE index covers all sectors of the stock market. In particular, it features leading companies within the healthcare, technology, retail, consumer goods and energy sectors.
Pharmaceutical stocks are a notable contributor to the FTSE , as well as raw material suppliers, such as oil, gas and mining stocks. However, trading hours also depend on each individual broker, as some offer FTSE weekend trading.
These are agreements between a buyer and seller to trade the asset at a future date and price, allowing you to speculate on the price of the stock index over-the-counter, rather than through an exchange.
To do so, GVC issued more shares and thus increased its all-important market capitalisation. This is for generic information only and is not suggesting a suitable investment strategy for you. You should seek independent financial advice that takes your individual circumstances into account prior to proceeding with any course of action. Find all the latest industry news, all written by our in-house industry experts. More Articles. Before trading the FTSE , make sure you do your research and understand how the index works.
Consider putting your knowledge to the test with a demo account. If its market capitalisation drops drastically, a company might lose its listing on the FTSE Compare features. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.
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