FTSE 100
From 123CFD
The FTSE 100 Index (or just the FTSE, pronounced footsie) is a share index of the 100 most highly capitalised companies listed on the London Stock Exchange. The index began on 3 January 1984 with a base level of 1000; the highest value reached to date is 6950.6, on 30 December 1999.
FTSE is an abbreviation of 'Financial Times Stock Exchange'. The index is maintained by the FTSE Group, a now independent company which originated as a joint venture between the Financial Times and the London Stock Exchange.
FTSE 100 companies represent about 80% of the market capitalization of the whole London Stock Exchange. Even though the FTSE All-Share Index is more comprehensive, the FTSE 100 is by far the most widely used UK stock market indicator. Other related indices are the FTSE 250 Index (which lists the next largest 250 companies after the FTSE 100), the FTSE 350 Index (which is the aggregation of the FTSE 100 and 250), FTSE SmallCap Index and FTSE Fledgling. The FTSE All-Share aggregates the FTSE 100, FTSE 250 and FTSE SmallCap.
The constituents of the index are determined quarterly; the largest companies in the FTSE 250 Index are promoted if their market capitalisation would place them in the top 90 firms of the FTSE 100 Index. As of 2006, the threshold for inclusion is about 2.9 billion pounds [1]. As of 29 December 2006 the 6 largest constituents of the index were BP, Royal Dutch Shell, HSBC Holdings, the Vodafone Group, the Royal Bank of Scotland Group and GlaxoSmithKline, which were each valued at more than £60 billion.
Component companies must meet a number of requirements set out by the FTSE Group, including having a full listing on the London Stock Exchange with a Sterling or Euro dominated price on SETS, and meeting certain tests on nationality, free float, and liquidity.
Most of the companies listed on this index usually include the abbreviation plc at the end of their name, indicating their status of public limited company.
Trading lasts from 0800-1629 (when the closing auction starts), and closing values are taken at 1635 (though the closing value of the index itself is timed at 1636).
Most CFD (Contract for difference) providers will let you trade the FTSE 100 (or 250, 350 etc) index for margins as low as 1%
