FTSE Futures IG is a popular trading instrument among investors and traders. It allows them to speculate on the future value of the FTSE 100 index, which represents the top 100 companies listed on the London Stock Exchange by market capitalization. In this article, we will discuss what FTSE Futures IG is, how it works, and how you can trade it.
What are FTSE Futures IG?
FTSE Futures IG are contracts that allow traders to buy or sell the FTSE 100 index at a predetermined price and date in the future. They are traded on the IG platform, which is a leading provider of online trading services. The value of the FTSE Futures IG contract is based on the value of the underlying FTSE 100 index.
How do FTSE Futures IG work?
When you trade FTSE Futures IG, you are essentially betting on whether the value of the FTSE 100 index will go up or down. If you think the index will go up, you buy the contract. If you think the index will go down, you sell the contract. The value of the contract is based on the difference between the price at which you bought or sold the contract and the price at which you close the contract.
Why trade FTSE Futures IG?
There are several reasons why traders choose to trade FTSE Futures IG. First, it allows them to gain exposure to the UK stock market without having to buy individual stocks. Second, it offers leverage, which means you can trade a larger position with a smaller amount of capital. Third, it is a flexible instrument that can be traded at any time, 24 hours a day.
How to Trade FTSE Futures IG
To trade FTSE Futures IG, you need to open an account with IG. Once you have done that, you can access the trading platform and start trading. Here are the steps you need to follow:
Step 1: Choose your market
IG offers several markets, including indices, forex, commodities, and stocks. To trade FTSE Futures IG, you need to select the “Indices” market and then choose “FTSE 100” from the list of indices.
Step 2: Choose your contract
Once you have chosen the FTSE 100 index, you need to select the FTSE Futures IG contract that you want to trade. IG offers several contracts with different expiry dates and prices. Choose the one that best fits your trading strategy.
Step 3: Place your trade
After you have chosen your contract, you need to place your trade. You can either buy or sell the contract, depending on whether you think the index will go up or down. You also need to specify the size of your trade and the stop loss and take profit levels.
Step 4: Monitor your trade
Once you have placed your trade, you need to monitor it to see how it is performing. You can do this by checking the IG trading platform, which provides real-time price quotes and charts.
Tips for Trading FTSE Futures IG
Here are some tips to help you trade FTSE Futures IG successfully:
Tip 1: Understand the market
Before you start trading FTSE Futures IG, you need to understand the market and how it works. This includes understanding the factors that affect the value of the FTSE 100 index, such as economic indicators, political events, and company earnings reports.
Tip 2: Develop a trading strategy
To be successful at trading FTSE Futures IG, you need to have a trading strategy. This should include your entry and exit points, your risk management plan, and your profit targets. Stick to your strategy and don’t let emotions cloud your judgment.
Tip 3: Use stop loss orders
Stop loss orders are an important risk management tool that can help you limit your losses. Set a stop loss order at a level that you are comfortable with and stick to it.
Tip 4: Keep an eye on news events
News events can have a significant impact on the value of the FTSE 100 index. Keep an eye on news events and adjust your trading strategy accordingly.
FTSE Futures IG is a popular trading instrument that allows traders to speculate on the future value of the FTSE 100 index. It is a flexible and leveraged instrument that can be traded at any time. To be successful at trading FTSE Futures IG, you need to understand the market, develop a trading strategy, use stop loss orders, and keep an eye on news events.