FT100 Futures Overview | Structure, Market Role & Global Scope

 Highlights

• FT100 Futures track the performance of the largest companies listed on the London Stock Exchange.

• The contract reflects movements of the FTSE 100 Index across multiple sectors.

• It is widely followed as a measure of market sentiment linked to top capitalised firms.

The ft100 futures relate to the benchmark index covering the largest companies listed on the London Stock Exchange. These futures are tied to the FTSE 100 Index, which includes leading businesses across industries such as energy, finance, healthcare, and consumer goods. The contract provides an overview of how the most capitalised companies within the UK market are collectively valued.

Structure of FT100 Futures

FT100 Futures are based on the FTSE 100 Index, which is calculated using a market capitalisation weighting method. This means that companies with higher market value have a greater influence on the performance of the underlying benchmark. The futures contract therefore reflects the weighted performance of these top-tier businesses rather than treating all constituents equally.

Sectors Represented in FT100 Futures

A wide variety of industries are included within FT100 Futures because they are linked directly to the FTSE 100 Index. Prominent sectors include financial services, energy, industrial goods, technology, healthcare, and consumer-focused companies. This diversity ensures that the contract mirrors the broad representation of industries driving both domestic and global business activity.

Market Role of FT100 Futures

FT100 Futures serve as an indicator of how the most capitalised companies on the London Stock Exchange are performing as a group. The contract provides a consolidated view of business activity and overall market conditions by tracking the value of the largest firms across various industries. Its relevance extends beyond the domestic market, reflecting global connections of UK-listed companies.

Adjustment and Review of FT100 Futures

The composition of FT100 Futures changes in line with periodic reviews of the FTSE 100 Index. Businesses may enter or exit the benchmark depending on their market capitalisation. These adjustments ensure that the futures remain aligned with the top listed companies and accurately represent the changing structure of the equity market.

Global Scope of FT100 Futures

Although FT100 Futures are linked to a UK benchmark, many of the underlying companies generate revenues across international markets. This global exposure means that the contract reflects not only domestic economic trends but also broader global business conditions. As such, FT100 Futures capture a combination of UK-based and worldwide market performance.