Trade FTSE100

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.

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.

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.

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.

The FTSE 100 holds the 100 largest companies on the London Stock Exchange, which earn most of their revenue overseas. The FTSE 250 holds the next 250 and is far more exposed to the domestic UK economy. Traders often read the FTSE 250 as a better gauge of UK business conditions and the FTSE 100 as a global play.

Mining and energy companies carry a large share of the index weight. When oil, copper, and gold prices rise, those constituents gain and can lift the whole index. A commodity downturn does the reverse, which is why the FTSE 100 often tracks global raw material prices more closely than UK data.

One standard lot is 10 index units, so the notional value is 10 multiplied by the index level, priced in GBP. StoicMarkets supports mini (0.1) and micro (0.01) lots. Because the contract is denominated in pounds, your profit and loss carries a currency element if your account uses another currency.

Yes. The FTSE 100 CFD is available on StoicMarkets 10X accounts with up to 1:10 leverage. On Standard and Pro accounts it uses the leverage shown on this page. Leverage increases both potential gains and potential losses, so size positions accordingly.