Binary options: Trade binary options on the FTSE 100 (part one)

binary-options-ftse100-index-footsieBinary options allow you to trade on a variety of underlying assets. The team presents you the FTSE 100 index that is popular with investors. This article is the first in a series and will define the FTSE 100 index and explain how it is calculated.

What is the FTSE 100?

Also known as “footsie”, the FTSE is a stock market index based at the London Stock Exchange. The FTSE is also associated with a group of the same name that provides the FTSE 1000 and other related data services. The first two letters of the title (FT) mean Financial Times, who owns half of FTSE. The FTSE 100 index is often compared to the S&P 500 index, issued by the American Stock Exchange.

The FTSE group doesn’t limit itself to the calculation of the FTSE 100. It is also responsible to make calculations on the FTSE Small Cap, the FTSE 350, the FTSE All Share and the FTSE AIM 100 indexes. Binary options brokers who prefer the FTSE 100 do not always offer these indexes.

How is the FTSE 100 calculated?

The FTSE 100 is a stock market index comprised of the 100 British companies weighing the most in the London Stock Exchange. This index allows you to measure the health of the economy outside the country and proves to be a particularly performing indicator.

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