The FTSE 100 tracks the 100 largest companies listed on the London Stock Exchange. It is often described as a UK index, but around three quarters of its members’ revenue is earned outside the United Kingdom. That makes it behave differently from the British economy: it leans on oil, mining, banks, consumer staples and pharmaceuticals, has very little technology, and often rises when the pound falls.
Key takeaways
- The FTSE 100 was launched on 3 January 1984 with a base of 1,000 points.
- It is weighted by free-float market value and reviewed every quarter.
- Because most revenue is earned abroad in other currencies, a weaker pound tends to raise the sterling value of those earnings.
- Energy and mining companies make it sensitive to oil and metal prices.
- The London cash session runs 08:00–16:30 UK time: 07:00–15:30 UTC in summer.
| Tracks | FTSE 100, London Stock Exchange |
|---|---|
| Constituents | 100 largest eligible companies |
| Launched | 3 January 1984, base 1,000 |
| Weighting | Free-float market value |
| Reviewed | Quarterly |
| Index type | Price index (dividends excluded) |
| Cash session | 08:00–16:30 London |
| Common broker symbol | UK100 |
| Symbol at Marketsall | UK100 |
What is the FTSE 100?
The index is run by FTSE Russell, part of the London Stock Exchange Group. Every quarter the largest eligible companies are checked; firms that rise above 90th place are added and those that fall below 111th place are removed. The name comes from the Financial Times and the Stock Exchange, its original owners.
Why does the FTSE 100 often rise when the pound falls?
If a company earns dollars and reports in pounds, a fall in the pound means each dollar of profit is worth more pounds. Because so much FTSE 100 revenue comes from abroad, a weaker pound tends to lift reported earnings and the index. It also makes UK shares cheaper for foreign buyers. The effect is a tendency, not a rule: if the pound falls because of a UK crisis, shares can fall too. The pound itself is covered in the GBP/USD guide.
| Feature | FTSE 100 | FTSE 250 |
|---|---|---|
| Companies | 100 largest | The next 250 |
| Revenue earned in the UK | About a quarter | Around half |
| Typical reaction to a weaker pound | Often rises | Often falls |
| Sensitivity to the UK economy | Lower | Higher |
| Main sectors | Energy, mining, banks, staples, pharma | Domestic services, property, industrials |
What moves the FTSE 100?
| Driver | How it tends to work | What to watch |
|---|---|---|
| Commodity prices | Oil majors and miners are among the largest members. | what moves crude oil prices, copper |
| The pound | A weaker pound tends to lift overseas earnings in sterling terms. | GBP/USD guide |
| Global growth | Banks, miners and industrials follow the world cycle. | PMI surveys |
| Interest rates | Higher rates help bank margins but weigh on valuations elsewhere. | ECB and Bank of England rate decisions |
| Defensive demand | Staples and pharma often hold up when growth shares fall. | risk-on vs risk-off |
FTSE 100 vs DAX vs US500
| Feature | FTSE 100 | DAX 40 | US500 |
|---|---|---|---|
| Index type | Price | Performance | Price |
| Technology weight | Very small | Moderate | Large |
| Commodity weight | Large | Small | Small |
| Dividend yield | High | Moderate | Low |
| Read more | This guide | DAX guide | US500 guide |
When does the UK100 trade?
The index is a price index, so it falls on ex-dividend dates and cash-based UK100 CFDs apply dividend adjustments. With many high-yield members, those adjustments are larger than for US indices. See cash vs futures index CFDs, index CFD trading hours and position sizing for index CFDs.
What it costs to trade the FTSE 100 (UK100) as a CFD
A UK100 CFD tracks the level of the FTSE 100; no shares are owned. See what a CFD is and index trading.
| Cost | When it applies | Note for the FTSE 100 (UK100) |
|---|---|---|
| Spread | Every trade, at entry | Tightest during London hours; wider overnight |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | Charged daily on positions held past the rollover. |
| Dividend adjustment | Cash-based index CFDs, when constituent shares go ex-dividend | Long positions are typically credited and short positions debited, so that the index’s fall on the ex-dividend date creates no profit or loss. |
| Contract rollover | Only if the CFD is based on a futures contract | The price adjusts when the underlying contract changes. |
| Slippage | Fast markets, gaps, news | Most likely at the London open and on commodity or UK headlines |
Key risks
Commodity swings. Oil and mining moves can dominate the index.
Currency effects. Pound moves change the index for reasons unrelated to UK growth.
Ex-dividend clusters. Several large members go ex-dividend on the same days, moving the index and triggering CFD adjustments.
Leverage. See how leverage increases trading risk and gap risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
How to trade the FTSE 100 (UK100) at Marketsall
The FTSE 100 is listed as UK100 on MetaTrader 5 and Web Trader. Read the symbol specification for contract size, margin and swap rates before a first trade; how to read contract specifications on MT5 shows where they are. Practise on a demo account first, keeping in mind the differences covered in demo vs live accounts, and set the position size before opening the ticket with position sizing.
Frequently asked questions
What is the FTSE 100?
The FTSE 100 is an index of the 100 largest eligible companies listed on the London Stock Exchange, weighted by the value of their freely traded shares. It was launched in January 1984 with a base of 1,000 points and is reviewed every quarter.
Why does the FTSE 100 rise when the pound falls?
Most FTSE 100 revenue is earned outside the UK in other currencies. When the pound weakens, those foreign earnings are worth more in pounds, which tends to lift reported profits and share prices. The effect can reverse if the pound falls because of a UK crisis.
What moves the FTSE 100?
Commodity prices, the value of the pound, global growth, interest rates and demand for defensive shares. Because energy, mining, banks, consumer staples and pharmaceutical companies dominate, the index often reacts more to global markets than to the UK economy.
What is the difference between the FTSE 100 and the FTSE 250?
The FTSE 100 holds the 100 largest London-listed companies, which earn most of their revenue abroad. The FTSE 250 holds the next 250, which earn a larger share at home, so it is a better guide to the UK economy and tends to fall when the pound falls.
What time does the FTSE 100 open?
London cash trading opens at 08:00 UK time and closes at 16:30, which is 07:00 to 15:30 UTC in summer and 08:00 to 16:30 UTC in winter. FTSE 100 futures and CFDs usually trade for longer.
Related reading
Test the pound link yourself
Treat the FTSE 100's habit of rising as sterling weakens as something to check, not assume: how stock markets and currency markets are connected splits the link into three channels that can pull apart, and watching GBP/USD beside the index on UK data days shows whether it holds.
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