Trading the FTSE 100 involves buying and selling financial instruments linked to the FTSE 100 stock index, which represents the 100 largest companies listed on the London Stock Exchange. Traders can speculate on the future direction of the FTSE 100 using methods such as buying individual stocks, investing in index funds or trading CFDs. The aim is to make a profit by anticipating movements in the index price, which are influenced by a variety of economic, political and geopolitical factors.