How does the FTSE-100 work? | Ep.83

We meet market expert Patrick Munnelly of Tickmill to talk about the FTSE-100 index of shares. What does it represent, what factors affect the price, how has it performed historically and are there any trading tactics for beginner traders. Get free alerts on market movers at www.thearmchairtrader.com 00:00 What is the FTSE 100 - how is it composed and calculated? 03:07 What sectors represent it? 05:00 How has it performed historically? 08:48 Why is it a good index to start with for early stage traders? Why not trade S&P 500? 12:16 Why is the FTSE not a good way to replicate UK economic performance? 14:48 Why and how does the FTSE get rebalanced? Are there any trading tactics that work around the FTSE specifically - e.g. long stocks that are likely to be promoted from the FTSE 250? 18:25 Are ETFs tracking the index becoming more influential on prices? 20:12 How do currency markets affect the FTSE?