Trade FTSE100
UK 100 (FTSE) Index
London's flagship index of 100 blue-chip companies, with the majority of revenues earned abroad, making it more a gauge of global business than UK domestic economic health.
Specifications
About FTSE 100 (UK 100)
The FTSE 100 measures the performance of the 100 largest companies listed on the London Stock Exchange by market capitalization. Despite being the UK's benchmark, the index is heavily international in character: over 70% of revenues generated by FTSE 100 constituents come from outside the UK. The index is heavy in mining, energy, and financial stocks, with major oil producers, diversified miners, and international banks forming the core of its weight. This international revenue skew creates an unusual inverse relationship with sterling, when GBP weakens, overseas earnings translate back into more pounds, which supports reported FTSE 100 earnings.
Key Price Drivers
- GBP exchange rate (pound weakness supports overseas earnings translation into sterling)
- Global commodities, oil, copper, and gold prices drive major index constituents
- Bank of England monetary policy and UK interest rate trajectory
- Mining and energy sector earnings, which carry disproportionate index weight
Peak Trading Hours
The FTSE 100 CFD peaks during London Stock Exchange cash market hours.
London cash session (08:00-16:30 UTC)
UK economic data (CPI, employment) typically releases at 07:00 UTC, setting the tone before the open. Mining stocks, heavily weighted in the FTSE, react to overnight commodity moves from the Asian session, often driving gap opens.
How to Trade FTSE100 on StoicFX
Open an Account
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Fund Your Account
Deposit via bank transfer, card, crypto, or e-wallet.
Find FTSE100 in MT5
Open MetaTrader 5, search for FTSE100 in Market Watch, and add it to your chart.
Place Your Trade
Set your lot size, stop loss, and take profit, then execute your order.
FAQ
Why does a weaker pound push the FTSE 100 higher?
Most FTSE 100 companies earn revenues in US dollars, euros, and other currencies. When GBP depreciates, those foreign earnings are worth more when converted back into pounds for reporting purposes. Since the index is priced in GBP, a weaker pound mechanically inflates the sterling value of overseas profits. This inverse relationship between GBP and the FTSE 100 is one of the index's most distinctive characteristics.
What sectors dominate the FTSE 100?
The FTSE 100 is dominated by financials, energy, and basic materials (mining). Major oil companies, diversified global miners, and international banks typically account for a significant share of total index weight. Healthcare and consumer staples are also well represented. Technology is especially underweighted compared to US indices, which means the FTSE 100 often behaves differently from the Nasdaq or S&P 500 during tech-driven market moves.
How does the Bank of England affect the FTSE 100?
Bank of England rate decisions affect the FTSE through multiple channels. Higher rates increase borrowing costs for UK-listed companies and compress equity valuations through a higher discount rate. However, the domestic economic impact on the FTSE is partially muted by the index's international character, many constituents are not primarily dependent on UK consumer spending. BoE rate decisions also move GBP, which feeds back into the earnings translation effect.
Is the FTSE 100 a good index for dividend-focused traders?
The FTSE 100 is known for higher dividend yields than most other major developed-market indices. Mining, energy, and financial constituents have historically paid substantial dividends relative to their share prices. Traders holding long FTSE 100 CFD positions should be aware that index-level dividend adjustments are applied to open positions on ex-dividend dates, which can affect account balances in ways that differ from equity investing.
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CFDs are complex instruments and carry a high risk of rapid capital loss due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.