ASX All Ordinaries Index Trading Defined and Explained

The Australian Stock Exchange (ASX) trades the 500 largest companies listed on the Australian Stock Exchange as an index – the ASX All Ordinaries. The All Ordinaries index is essentially Australia’s market indicator.

Market capitalization is the only eligibility requirement of entry, as liquidity is not considered, with the exception of foreign companies. There is a diverse range of companies satisfying these criteria and their market values vary widely. This means that share price movements for companies with larger capitalizations have a larger effect on the All Ordinaries Index than do smaller companies.

The Australian All Ordinaries Index portfolio is updated every month to ensure that the companies included continuing to meet the criteria for inclusion. It is also updated throughout the month when there are changes in the portfolio companies including delisting, additions, and closures.

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ASX All Ordinaries Index Trading Software

Ask any ASX trader or general investor what trading tools or types of financial analysis he is using and you’re probably going to hear a list of different technologies and methods. However, having the right tool for the job is critical. Trading software can be used to augment an existing approach by supplying an inter-market perspective. The key to an ASX trading system is its ability to forecast moving averages. One of the better ASX trading software products is VantagePoint trading software that will help “see” what is likely to happen in the oats market before other traders (using only single-market analysis) catch wind of it.

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