Introduction to Stock Studies (Feat. FTSE100, differences between GBP and GBX, how to do British stocks in Malaysia)

Hello.

It's a lively Friday morning. Are you all spending the end of July well?

Today, I'm going to look at stocks in England, the birthplace of capitalism.

So are you ready for a British stock introduction? :D

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1. FTSE 100 Index

It's an index that you have to know to do British stocks in the UK. FTSE 100 stands for Financial Times Stock Exchange 100 Index, which represents the stock index of the 100 largest companies listed on the London Stock Exchange in the UK. The index helps to understand the stock price movements of major companies in the UK market and to understand the health and economic trends of the market.

The FTSE 100 consists of companies representing a wide range of industries, including automotive, finance, mining, steel, energy, healthcare, and retail. These companies are selected in the order of market capitalization in the UK, and the larger the market capitalization, the greater the impact on the index.

The FTSE 100 index is calculated to reflect the movement of the stock price over a period of time. In general, the index is calculated using stock price indicators such as market price, high price, low price, and closing price, and the value fluctuates continuously depending on market volatility and corporate performance.

The FTSE 100 is one of the leading stock index in the UK, and it is also receiving international attention. The FTSE 100 index allows investors to grasp the overall flow of the UK market and use it to form a portfolio.

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2. The Difference between GBP and GBX

Both GBP and GBX represent the British currency, GBP. However, there are differences between the two notations.

GBP (British Pound Sterling):

- GBP is the official currency code for the British pound.

- 1 GBP consists of 100 pence.

- GBP is primarily used in foreign exchange markets, news and financial reporting on the global economy, and is used as a reference indicator for UK economic activity and currency value.

- In general UK consumption or financial transactions, it is common to pay in GBP or to indicate the amount.


GBX (British Penny):

- GBX is a subunit of the British pound, also called 'penny' or 'British pound shilling'.

- 1 GBP consists of 100 pence, so 1 GBX is equal to 1/100 (0.01) GBP.

- GBX is usually used in the UK stock market. British stock prices are sometimes written in GBX.
For example, if the stock price is shown as 250 GBX, this means 2.50 GBP.

- Therefore, it should be noted that GBP and GBX represent the same currency, the GBP, but the notation is used differently depending on the context in which it is used. GBP is used in general financial transactions and foreign exchange markets in the UK, and GBX is used in the UK stock market to indicate stock prices.

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3. LSE (London Stock Exchange)

 

So where is the official site where you can find out the price of shares in the UK on the same day?

 

 

It's the London Stock Exchange site called londonstockexchange.com . What is the London Stock Exchange called LSE in short?

The London Stock Exchange (LSE) is a major stock exchange in the United Kingdom and one of the oldest stock exchanges in the world. The LSE is located in London and serves as an international financial centre representing the United Kingdom.

Various financial instruments are traded on the LSE, of which the most notable are:

 

Stocks: Shares of companies are traded, and companies are listed on the LSE to trade shares with investors.

Bonds: With government or corporate debt certificates, investors can buy bonds and earn interest income.

Exchange-Traded Funds (ETF): An investment product that is traded by forming a portfolio of various assets, and is traded like a stock.

Derivatives: Derivatives such as futures, options, etc. are traded in pursuit of profits from price movements of underlying assets.

The LSE is a major listing destination for British companies, which has a significant impact on the UK economy and financial markets, and is also an attractive investment destination for international investors. Many companies are listed on the LSE, and the stock index FTSE 100 and FTSE 250 are widely used as indicators to reflect the stock price trends of large companies listed on the LSE.

The LSE carefully adheres to regulations and supervision for the transparency and stability of transactions, providing investors with a safe and reliable investment environment.

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4. How to Trade Stocks listed in LSE(London Stock Exchange)

There are two main ways of doing British stocks in Malaysia. There's a way to create a CFD account and a way to start by creating a stock account at a securities company that handles British stocks, and CFD account is an abbreviation for Contract for Difference, which is one of the financial derivatives. CFD refers to a contract between two parties (parties) that exchanges the difference according to the price movement of the underlying asset. The most famous platform is eToro.

 

eToro is an online trading platform that provides services for trading a variety of financial products, including stocks, cryptocurrencies, foreign exchange, and commodities, as well as CFD.

 

eToro users can access these financial products through their eToro trading accounts. eToro allows users to open CFD positions on a variety of assets, including stocks, indices, currencies, commodities, and cryptocurrencies. However, CFD transactions pose high risks and high loss risks due to leverage, so traders should keep in mind that they can suffer big losses with big profits.

 

So in the case of eToro, it deals with shares of companies listed on many exchanges, such as EU Stock, NASDAQ, and Hong Kong shares, and you can also trade British shares through this platform. And you can also trade stocks through securities firms in Malaysia, and banks that can trade British stocks in Malaysia can use MAYBANK Securities and Hong Leong Bank.

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Have a good weekday and have a happy day today on the last Friday.

 

Best Regard from  

Stephen Son