July 7, 2010
How they calculate the points up or down every day trading in the ASX market?
By Planet Wealth
Topics: Uncategorized | 1 Comment »
One Response to “How they calculate the points up or down every day trading in the ASX market?”
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July 7th, 2010 at 3:11 pm
Reckon of an index as the dollar value of a portfolio of stocks. The value of that portfolio rises and falls each day. Sometimes you sell some stocks and buy some stocks, so you have to adjust your calculation.
An index is the value of the portfolio that you hold divided by a "divisor" so the index is continuous from day-to-day. The number of points up or down each day reflects the rise or fall in the value of the stocks that comprise the ASX. It’s best to look at the rise or fall on a percentage basis by dividing the point change by the level of the ASX.