FTSE 100 trading guide: How to trade the FTSE 100 index 

• What is the FTSE 100 index? 
• FTSE 100 constituents 
• How to trade the FTSE 100 
• FTSE 100 market hours 
• How is the FTSE 100 calculated? 
• What moves the FTSE's price? 
• Average returns of the FTSE 100 
• FTSE 100 companies ranked by market capitalisation

What is the FTSE 100 index?

The FTSE 100 is a stock index that tracks the 100 largest publicly-traded companies listed on the London Stock Exchange (LSE). The combined value of the FTSE 100 comprises more than 80% of the entire LSE's market cap. 

On the StoneX Trading platform, the FTSE 100 is called the UK 100. 

The FTSE 100 is used as a benchmark for the economic health of the UK. If the price of the index rises, it means the FTSE constituents' share prices are rising, which generally indicates a positive economic situation. Whereas a falling FTSE is a sign that the companies (and the wider economy) are experiencing a period of contraction. 

FTSE 100 constituents

The FTSE 100 comprises the largest UK-listed companies by market value, often considered blue-chip businesses. While the index is a gauge of the UK economy, many constituents operate globally as multinational firms. To be included, companies must be listed on the London Stock Exchange (LSE), have shares priced in pounds sterling, and meet float and liquidity requirements. The index is reviewed quarterly (March, June, September, December), with changes affecting sector exposure.  

Following the March 2026 review, the index’s largest sector exposures were: 

How to trade the FTSE 100 

There are several ways to trade the FTSE 100, depending on your strategy and time horizon. Common approaches include CFDs, spread betting, futures, options and ETFs. 

FTSE cash CFDs 
CFDs are derivative products that track the price of an underlying market, in this case, the FTSE 100. 

When you trade a FTSE CFD, you speculate on the index price movement without owning the underlying shares. Your profit or loss is based on the difference between the price when you open your position and when you close it. 

You can go long if you expect the FTSE 100 to rise, or short if you think it will fall. FTSE cash CFDs typically offer tight spreads, which makes them popular with traders taking short-term positions. Holding a position overnight, however, will usually incur additional charges.

Learn more about CFDs. 

FTSE spread betting 

Spread betting allows you to take a position on the FTSE 100 by staking a set amount per point of movement. 

If the index moves in your favour, your profit increases by the number of points moved multiplied by your stake. If it moves against you, your loss increases in the same way. For example, staking £5 per point means you would gain or lose £5 for every one-point move in the FTSE 100. 

Find out more about spread betting. 

FTSE futures 

FTSE futures are agreements to speculate on where the index will be at a specified future date. 

Unlike futures on physical commodities, FTSE futures do not involve delivery of an underlying asset; the index reflects the combined performance of its constituent stocks. 

Futures pricing can be influenced by expectations for market direction, interest rates, and broader sentiment. Futures markets open before the London Stock Exchange, and they can also influence where the FTSE 100 opens at the start of the trading day. 

When trading FTSE futures with StoneX Trading, exposure is typically gained via CFDs. Futures-based strategies are often used for longer-term positions, as financing costs are built into initial pricing. 

FTSE 100 options 

FTSE 100 options give you the right, but not the obligation, to buy or sell the index at a set price on a specified date. 

There are two main option types: 

• Call options, which may benefit from rising prices 
• Put options, which may benefit from falling prices 

Unlike futures, options allow you to let a position expire without exercising it, which can limit risk to the original premium paid. 

FTSE 100 options traded with StoneX Trading are accessed via CFDs, allowing you to speculate on option price movements.  

Learn more about options trading.   

FTSE 100 stocks and ETFs 

Another way to gain exposure to the FTSE 100 is through exchange-traded funds (ETFs). These funds track the performance of the index by holding the shares of its constituent companies. 

Many FTSE 100 ETFs are weighted in line with the index, providing broad, index-level exposure. Others may use alternative weightings, offer leveraged exposure, or track the index inversely. 

Alternatively, you can trade individual FTSE 100 shares, allowing you to focus on specific companies or sectors rather than the index as a whole. 

Find out more about share trading.  

FTSE 100 market hours 

The FTSE 100 opens at 8am and closes at 4:30 (GMT), which are the hours of the London Stock Exchange. When you trade the FTSE 100 with StoneX Trading, you’ll be able to get exposure to the index for much longer. 

With your StoneX Trading account, you can trade the UK 100 23 hours a day five days a week, with a break from 22:00 to 23:00 (GMT). 

You can see the trading hours for every single StoneX Trading market within the web trading platform, with a free StoneX Trading demo. 

Learn more about stock market hours. 

How is the FTSE 100 calculated? 

The FTSE 100 is calculated using the total market capitalisation of all 100 constituents. As the index is market-capitalisation weighted, companies with higher values will have more influence over the index's final value. 

The FTSE 100 is calculated using the market value of its constituent companies, with larger companies having a greater impact on the index.  

Each company’s market capitalisation is calculated by multiplying its share price by the number of shares in issue. This figure is the adjusted using a free-float factor, which indicates how many shares are still available on the market.  

Companies with a higher free-float, and a larger market value, will carry more weight index, meaning their price movements have a bigger influence on its overall performance.   

The combined value of all constituents is then adjusted using an index divisor, which helps maintain consistency over time despite changes such as stock splits or index rebalancing.  

What moves the FTSE's price? 

The FTSE's price is constantly moving over the course of a trading day, as the companies it represents rise and fall. With 100 constituents to follow, identifying the reason for any single move can be difficult - but some broad trends will usually cause the FTSE to move. 

1.GBP 
The FTSE includes the biggest blue chips in the UK. These companies tend not to be domestic facing, which gives the index a negative correlation with pound sterling. 

Why does this happen? Because a weak pound helps exporting companies make more margin on their profits. If, say, you're selling to the US, then a weak GBP/USD rate will mean you make more pounds by selling your product for the same amount of dollars. 

This effect saw the FTSE rally to new highs after the Brexit vote in 2016. The pound tumbled on the back of the result, which helped FTSE 100 companies grow their bottom lines. 

2.Fundamental data 
Economic data can influence how investors position themselves in the market.   

For example, rising inflation can put pressure on businesses by increasing costs and reducing consumer spending. This may lead investors to reduce exposure to equities, which can weigh on stock indices such as the FTSE 100.  

3.Individual companies
Price movements in major constituents such as  Unilever, Rio Tinto or GlaxoSmithKline will have a larger impact on the overall index than smaller cap firms.  

Earnings updates, sector developments, and company-specific news from these larger firms can therefore drive broader moves in the FTSE 100.  

Average returns of the FTSE 100 

Over the recent years, the FTSE 100 has delivered average annual returns in the low-to-mid single digits, although performance can vary significantly from year to year.  

Returns depend on market conditions and whether dividends are reinvested, as total return measures include income as well as price movements.  

The recent annual performance is shown in the graph below. Past performance is not a reliable indicator of future results. 

FTSE 100 companies ranked by market capitalisation 

^{Here are the FTSE 100 companies by market capitalisation as of May 2026.}   

^{1 FTSE Russell, 2021 
2 London Stock Exchange, 2024}