Trading the ASX 200
The ASX 200 Index follows the price of the 200 largest companies listed on the Australian Stock Exchange by market capitalisation (the total value of the shares of that company actively traded in the market).
The ASX 200 is a popular index with traders and investors in Australia. The Australian economy has benefited from global demand for natural resources, particularly in Asia. In some respects, the index is a benchmark of the performance of mining shares and the relative health of the global mining industry in general.
Apart from the mining sector, the ASX is also heavily laden with financial services companies, and some of its biggest constituents are banks like Commonwealth Bank of Australia and WestPac Banking Corporation.