How do you buy a postion on the FTSE 100 Index

[markmoor]

I'd like to buy a position on the FTSE 100 index but I'm not sure how to do this.

Do you buy a position on the index or some investment position that tracks the index?

Also does anyone know a broker who provides this service?

Makr

 

[gonk]

I'd like to buy a position on the FTSE 100 index but I'm not sure how to do this.

Do you buy a position on the index or some investment position that tracks the index?

Also does anyone know a broker who provides this service?

Makr

A couple of ways would include:

The iShares FTSE 100 ETF. This is quoted on the London Stock Exchnage can be bought and sold through any stockbroker. It's a fund which actually holds shares in the companies forming the index in proportion to their index weighting.

You can spreadbet on the nominal index value. You don't own shares, you're just betting on the rise or fall of the index. This is a tax effiicient method as gains are tax-free. It also allows you to short the index which you cannot do with the ETF.