All major exchanges have their own stock index, including the London Stock Exchange. The LSE is one of the oldest and most traditional exchanges in the world and has become the largest provider of financial infrastructure services in Europe. In this article, we are going to explain the term “FTSE” to you.

A stock exchange is an electronic securities trading platform that settles standardized two-sided compromise and settlement operations in the form of buy and sell orders. Stakeholders have not always found it easy to participate, as investing money in securities was difficult and daunting for newcomers until a few years ago due to the high minimum amounts required and lack of access to information.

With the growing popularity of money and finance topics, the availability of financial and investment articles, and easy-to-use smartphone apps that make getting started easier, more and more first-time investors are entering the world. the markets. Those who want to start investing can do so conventionally with stocks or mutual funds, or they can also invest in ETFs (exchange-traded funds), which are a more comfortable capital investment as a securitized investment product.

Remember that it is not possible to invest directly in an index because the index is an indicator of the oscillation of the values ​​that replicate data such as prices. ETFs, which reproduce the main indices of the most important world markets, are becoming more popular around the world. ETFs are easy to acquire, offer broad diversification, and are easily accessible. An example is the FTSE 100.

What is the FTSE?

The FTSE, also known as FTSE 100, FTSE 100 Index or, informally and affectionately, “Footsie”, is considered the most important British stock index, since it reproduces the accumulated evolution of the prices of the 100 most important companies in the world. London Stock Exchange. The letters FTSE are short for “Financial Times Stock Exchange”.

The FTSE 100 is managed by the FTSE Group, a subsidiary of the London Stock Exchange. The FTSE Group was originally formed as a joint venture between the Financial Times, one of the world’s most respected newspapers, and the London Stock Exchange. The FTSE 100 was first launched on January 3, 1984, is weighted by market capitalization (also called market value) and is calculated in real-time. The total market value of a company is calculated by multiplying the price of its shares by the total number of shares issued by the company.

What does the FTSE 100 include?

The FTSE 100 includes roughly the 100 largest UK companies selected in terms of total market value. Most of the FTSE 100 companies have international projections.

Although the FTSE All-Share index is much more comprehensive, including some 600 companies out of the more than 2,000 listed on the London Stock Exchange, the FTSE 100 is nevertheless the most widely used indicator on the British stock market by far.

For example, the FTSE 100 includes companies such as GlaxoSmithKline, HSBC Holdings, Burberry, InterContinental Hotels, BP, Mondi, Prudential, and many others, ensuring a widespread on the securities included. Overall market performance can be calculated by comparing past and current price levels.

How can I invest in the FTSE 100?

The Top 100 British Stocks is an index-traded fund (ETF) that tracks the FTSE 100 index as accurately as possible. Bitpanda Stocks allows you to invest in ETFs * such as the Top 100 British Stocks, in a fractional way and from just 1 euro, without commissions and with tight spreads. This is made possible by derivative contracts covered by the underlying stocks and ETFs.