A spread bet on the UK100 will mirror the price of the UK’s FTSE 100 index. Chosen and weighted by market capitalisation the UK100 is made up of the 100 largest companies floated on the LSE. The UK100 represents a diverse range of sectors but given the weighting criteria over 50% of the index is attributable to 13 companies.
|Dealing hours||Sunday 22:00 to Friday 21:00|
|Exchange hours||24 Hours (trading breaks 21:15-21:30 & 22:15-23:00)|
|GTD minimum distance||1.00%|
|Bet type||Daily funded bet|
Details are indicative and are subject to change, clients should confirm spread
bet details in our platform before trading.
From its inception in 1984, the FTSE 100 has become a household name and is seen by traders as a reliable barometer of the global economy. So from Big Bang to Great Crash, what have been the key moments in the index’s 32 year history?
(January 3rd 1984) The FTSE 100 is born, with an initial weighting of 1,000 points.
The First Large Privatisation (November 20th 1984) The British Government sells 50% of its holdings in BT, at the time the biggest share issue in history.
The Big Bang Begins (October 26th 1986) Bowler hats out, ponytails in. In 1986, trading volume in London’s markets stood at 1/13th of Wall Street’s. Liberalisation of the LSE’s rules leads to an explosive increase in trading activity.
Tell Sid. (December 1986) In the largest privatisation of the decade, the government sells 97% of its stake in British Gas, raising £5,434m. It has been estimated that investing £100 in each of the largest privatisations (BP, British Gas, British Steel, BT and Rolls Royce) would have produced a return of 854%
The FTSE 100 Calls In Sick (October 16th 1987) As The Great Storm batters the South Coast and causes an estimated £2bn worth of damage, traders are left stranded at home and the markets unopened.
Black Monday (October 19th 1987) Whilst the London markets had been closed, uncertainty spread from emerging Asian economies to the US and Europe. On the Monday, the FTSE experienced its largest intraday fall and lost 12.22%.
Looming Recession (January 1991) Interest rates hit as high as 15% and inflation hovers around 10% as another recession begins to bite.
Black Wednesday (September 16th 1992) In a display of market power, FX traders spearheaded by George Soros force Norman Lamont to pull the UK out of the ERM. The British government is estimated to have lost £3.4bn in its attempts to prop up sterling.
The Asian Financial Crisis (July 1997) Fear of contagion sees the FTSE fall 2%. However, the damage seems to be contained in the Far East and the FTSE is propelled upwards by the beginnings of the dotcom bubble.
Introduction of the Euro (January 1st 1999) 11 countries adopt the single currency, with Greece joining in 2001 sowing the seeds of the Eurozone Debt Crisis.
Dotcom Peak (December 30th 1999) The dotcom bubble reaches its peak of 6930.2 points on the last day of trading of the millennium. Taking inflation into account, this peak would now be valued at around 9,500 points; a high still to be reached.
Dotcom Bust (Early 2000 onwards) As investors realise tech companies can’t produce profits to match their share prices, the market falls sharply from its end-of-year peak. Companies such as boo.com rapidly head towards liquidation and losses in the millions.
9/11 Terrorist attacks in New York rock the global markets and the FTSE 100 sees a 16.2% fall from the date of the attacks to the year’s end.
Northern Rock Bank Run (September 14th 2007) Depositors queue to withdraw funds from Northern Rock in the first run on a UK bank in 150 years. To avoid bad press the BoE’s negotiators meet the stricken bank's chiefs at a nearby McDonald’s. The FTSE 100 falls 1.17%.
Sub-Prime Crisis Spreads (January 21st 2008) As the sub-prime mortgage crisis spreads into the markets, the FTSE 100 experiences one of its largest falls ever closing 5.48% down.
The Great Crash (October 10th 2008) As panic over contagion from the sub-prime crisis grips global markets, the FTSE 100 falls by a massive 8.85%. Three days later the UK government promises £37bn in support for high street banks, pushing the index up 8.26%.
Citigroup Bailout (November 24th 2008) Largest one-day gain on record with a 9.84% rise triggered by the announcement that the US Federal Reserve would rescue Citigroup.
Eurozone Crisis Begins (January 2010) Eurozone debt crisis triggered as the EU finds “severe irregularities” in Greece’s accounting, with the country’s budget deficit revised to 12.7% from 3.7%. Uncertainty in the Eurozone contributes to volatility in the FTSE 100.
Ireland Bailout (November 29th 2010) In one of many bailouts to stricken Eurozone states, Ireland is bailed out to the tune of €85bn. The FTSE 100 closes 2.08% down.
China Crisis? (January 20th 2016) The FTSE falls into bear market territory following poor economic news from China and the continuing fall of commodity prices. Fears that China’s performance could drag the US down triggers turmoil in global markets…
Trading the UK 100 with Core Spreads mirrors the fluctuations of the FTSE 100 without needing to buy shares. Spread betting the UK 100 allows you to profit, or incur losses, whichever way the markets move at a razor-thin, fixed spread of 0.8 pts.
Placing a spread bet on the UK 100 is as straightforward as our charges. For instance, you place a £1 a point buy trade at a bid-offer spread of 5646.1 - 5646.9 and the markets rise by 100 points to a bid-offer spread of 5746.1 – 5746.9. At this point you decide to sell, closing your trade at 5746.1 points, giving you a profit of £99.20 (5646.9 – 5746.1 = 99.2 and 99.2 x £1).
Conversely, the markets fall 100 points and you decide to close your trade at a bid-offer spread of 5546.1 – 5546.9, incurring a loss of £100.80 (5646.9 – 5546.1 = 100.8 and 100.8 x £1).
You can spread bet the UK 100 and thousands of other instruments by signing up for an account here.