The Australian Securities Exchange (ASX) is one of the world's top 20 exchanges, hosting over 2,000 listed companies worth approximately $2 trillion.

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Quick Facts:

• The ASX operates as Australia's primary stock exchange, combining market trading, clearinghouse operations, and trade and payment settlement.
• It represents roughly 80% of the Australian equity market value through its flagship ASX 200 index.
• 2,000+ companies and 300+ ETFs are listed on the exchange, spanning from mining giants to tech innovators.

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How does the ASX work?

The ASX combines three critical functions in one system.

As a market operator, it provides the electronic platform where buyers and sellers meet. Trading occurs through a sophisticated computer system that matches orders in milliseconds, replacing the traditional floor-based trading that once defined stock exchanges globally.

The exchange also acts as a clearinghouse, ensuring trades settle correctly. When you buy shares, the ASX guarantees the transaction completes, managing the transfer of securities and funds between parties.

Finally, it serves as a payments facilitator, processing the money flows that accompany each trade. This integrated approach reduces settlement risk and keeps the market running smoothly.

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What are ASX trading hours?

The ASX operates from 10:00am to 4:00pm Sydney time (AEST/AEDT) on business days, with a pre-open phase from 7:00am. 

Stocks open alphabetically in staggered intervals starting at 10:00am, followed by continuous trading until the closing auction at 4:00pm. 

The exchange observes Australian public holidays and adjusts for daylight saving time between October and April, which can affect coordination with international markets.

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Top ASX Indices

S&P/ASX 200

This is the exchange's flagship index. It tracks the 200 largest companies by market capitalisation and represents approximately 80% of Australia's equity market.

It serves as the primary benchmark for most investors and fund managers and is rebalanced quarterly to ensure it reflects the current market leaders.

All Ordinaries Index

Commonly called the All Ords, this index covers the top 500 companies on the ASX. 

It provides broader market exposure than the S&P/ASX 200, capturing roughly 80-90% of total market value. 

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The 11 ASX sectors

The ASX also breaks down into 11 sector-specific indices, allowing investors to track performance in areas like financials, materials, healthcare, and technology. 

These indices can help identify which parts of the Australian economy are strengthening or weakening.

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1. Financials dominates as the largest sector, driven by Commonwealth Bank, NAB, Westpac, and ANZ. These banking giants provide lending, wealth management, and insurance services across Australia.
2. Materials ranks second, led by mining powerhouses BHP and Rio Tinto. This sector extracts and processes resources, including iron ore, coal, copper, and gold.
3. Consumer Discretionary includes retailers, media companies, and hospitality groups that benefit when household spending rises.
4. Industrials encompasses construction firms, airlines, and professional services businesses.
5. Healthcare features companies like CSL, a global biotech leader, and Cochlear, which produces hearing implants.
6. Real Estate features property developers and Real Estate Investment Trusts (REITs) that own and manage commercial and residential assets.
7. Communication Services includes telecommunications providers like Telstra alongside media and entertainment companies.
8. Energy tracks oil and gas producers (many renewable energy companies typically fall under utilities).
9. Consumer Staples covers essential goods providers like supermarkets and food producers.
10. Information Technology includes software developers and IT services firms.
11. Utilities covers electricity, gas, and water suppliers, including renewable energy.

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Top ASX companies

Three companies consistently lead the S&P/ASX 200 by market capitalisation.

Commonwealth Bank (Mkt cap: A$259 bln)

Commonwealth Bank holds the top position on the ASX as Australia's biggest lender. 

Founded in 1911 and fully privatised by 1996, CBA offers retail banking, business lending, wealth management, and insurance.

Its performance often signals the health of the domestic economy.

BHP Group (Mkt cap: A$241 bln)

BHP Group stands as the world's largest mining company. 

Its diversified portfolio spans iron ore, copper, coal, and nickel operations globally. 

It serves as a bellwether for Australian commodity markets.

CSL Limited (Mkt cap: A$182 bln)

CSL Limited leads the Australian healthcare sector as a global biotech firm. 

Established in 1916, CSL develops treatments for rare diseases and manufactures influenza vaccines. 

The company demonstrates Australian innovation competing on the world stage.

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The ASX's role in Australia's economy

The ASX serves as a vital mechanism for capital formation in Australia. It tends to provide price signals that reflect market expectations. 

When share prices rise, it suggests optimism about economic conditions. Falling markets may indicate concerns about future growth.

Australian companies raise funds through initial public offerings and follow-on share sales on the ASX, using proceeds to expand operations, fund research, or pay down debt.

Investors in these shares benefit from potential capital gains and dividend income. Many Australians build retirement savings through superannuation funds that invest heavily in ASX-listed companies.

Employment in financial services also depends partly on a healthy stock market. Brokers, analysts, fund managers, and supporting roles exist because of active capital markets.

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Key takeaways

The ASX functions as a market operator, clearinghouse, and payments facilitator, providing the infrastructure that enables capital formation and supports retirement savings for millions of Australians.

Its flagship index, the S&P/ASX 200, tracks the 200 largest companies and captures about 80% of market capitalisation, while the All Ordinaries index covers the top 500. 

Financials and Materials dominate the exchange, led by Commonwealth Bank, BHP, and CSL, reflecting Australia's strength in banking and resources.

You can trade the S&P/ASX 200 Index CFD and over 230 ASX Share CFDs on GO Markets.

To begin the week, I thought we'd do something a little bit different. We have taken the current ten-year challenge sweeping social media and tried to apply it to a brief technical analysis summary of the major FX pairs. Where were they trading in early 2009?

And where are they now? Judging by the list below, it would seem gold wins the gold medal regarding overall performance. The following summaries will delve further into each trading pair.

EURUSD Even though current price action is trading just above the 200 MA suggesting the longer-term trend is bullish, the price action since 2009 provides more significant evidence of a strong downtrend in place, most notably the lower highs witnessed in 2009, 2011, 2014 and last year respectively. Following the rather dull consolidative period between 2015 to 2017, the Euro-Dollar pair has shown a new lease of life and has found the 1.25 level to play a significant role once again. At current levels though, the danger here is that we could slip back into the familiar rangebound territory if the supportive structure seen at 1.14 fails to contain sellers going forward.

The highlighted head and shoulders pattern might be a precursor to a EURUSD reversal back towards the 1.05 lows. GBPUSD Surprisingly, only a 5% difference in value since this time ten years ago. We see mostly rangebound moves since 2009, with the Brexit catalyst in 2016 providing fuel for an extended step down in price.

The recovery from 2017 to the beginning of 2018 may give a clue to future movements within the pair. Notice how the price has respected the 200 MA in recent years, it would appear the region of 1.35 could be a potential barrier if tested, resulting in a continuation of the longer-term downtrend. In this scenario, the previous 1.20 support is a target worth considering.

USDJPY In 2009 the Dollar-Yen pairing appeared somewhat heavy towards the downside. However, we've seen a steady recovery since the 2012 lows, and a validated bullish trendline is currently in play. In December last year, price attempted a sharp move down to 104 levels but was quickly rejected, resulting in further Dollar strength.

Key areas to note are the Fibonacci retracements of the 2015 high including the 50% level which has provided strong support around 100.00 and the 23.6% retracement at 113.80 which continues to act as tough resistance. Perhaps we'll see another rally north to re-test 113.80 longer-term, especially when RSI (Relative Strength Index) levels are looking oversold. AUDUSD Like a boomerang that's been thrown and come back, the Aussie has returned to where it began in 2009 following some large swings higher.

Currently, in a residual downtrend, it's difficult to see where this pair may up longer-term, but the key takeaway over the last decade would be the importance of the 0.70 zone regarding support and resistance levels. USDCAD It is also a case of 'Back To The Future' for the Loonie. Despite some significant price moves over time, current levels are almost identical to those seen this time ten years ago.

Technically still within a longer-term uptrend, price action has maintained a presence around the 200 MA and has produced a textbook series of higher highs and lower lows since mid-2017. It is also worth pointing out that the 50% retracement level near the 1.20 mark has provided strong support for the pair in both 2015 and 2017. The future outlook appears to be indecisive moves heading sideways.

USDCHF Not too much change for the Swissie either since 2009. Following the SNB crisis in 2015, price action has been practically non-existent with 1.03 acting as somewhat of a ceiling slowly squeezing the price into submission. We could either see a massive breakout after this extended consolidation phase or perhaps more of the same longer-term.

NZDUSD An impressive 36% gain since 2009. Longer-term we have settled around the 50% Fibonacci retracement level of the Jun 2014 high. Current levels also coincide with the 200 Moving Average which price action has failed to break above in recent years convincingly.

There is still a slight bias to the downside, and the previous support level of 0.62 could be a potential target should the Kiwi Dollar continue to grind lower. XAUUSD An impressive price rise in the last decade for the precious metal, and similar to Kiwi Dollar, current price action is sitting around the 50% Fibonacci retracement level from the August 2011 high. The overall longer-term trend has been sideways since 2013 with no clear directional bias in sight.

The only thing worth noting here is the current RSI situation which appears overbought and could spell some bearish activity in the weeks and months ahead. This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions.

Trading Forex and Derivatives carries a high level of risk. For more resource on Forex trading check out our Forex Trading For Beginners introduction, Forex Trading Courses, open a Forex Demo Account or open a live Forex Trading Account. Sources: Go Markets MetaTrader, Google, Datawrapper, Tradingview.

Almost every country in the world has a stock exchange with some countries having multiple exchanges. There are over 60 major exchanges across the globe with the total market cap of over $85 trillion. But only 18 of those are in the so-called ''$1 trillion club''.

The top 18 stock exchanges have a total value of $77 trillion which makes up around 90% of the total global stock exchange market cap. United States The United States has two of the largest stock exchanges in the world - The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ). NYSE is the largest with a market cap of just over $23 trillion, that’s around $12 trillion more than second largest stock exchange NASDAQ.

Some of the biggest companies listed on NYSE include the tech giants Apple, Google, Microsoft and world’s 4th largest company by market cap - Amazon. Asia The largest stock exchanges in Asia are located in Tokyo (JPX) and Shanghai (SSE), with total market caps of $6.06 and $4.53 trillion respectively. Some of the largest companies on the JPX include automotive manufacturer Toyota, SoftBank, Mitsubishi and NTT DoCoMo.

Europe The largest European based stock exchange is based in Amsterdam (Euronext) with a market cap of around $4.34 trillion, closely followed by the London Stock Exchange (LSE) at $4.32 trillion. Some of the largest companies listed on Euronext include American multinational cigarette and tobacco manufacturer Philip Morris, Procter Gamble and HSBC Holdings. South America Brazilian Stock Exchange (Bovespa) is the largest in South America and 20th largest in the world with a market cap of around $783 billion, followed by the Mexican Stock Exchange (BMV) at $393 billion.

Africa Largest stock exchange in Africa is based in Johannesburg (JSE), South Africa with the market cap of just over $1 trillion. It is worth pointing out that it was the first stock exchange to reach $1 trillion market cap in Africa. Australia At $1.45 trillion market cap the Australia Stock Exchange (ASX) is the largest in Australia with not much competition to the top spot on the continent.

Some of the largest companies include Commonwealth Bank, Westpac Banking Corp, and CSL Limited. The financial sector makes up around 40% of the total market cap of the ASX. Map of the Largest Stock Exchanges by Continent Source: Google Maps Getting Close To A Trillion The closest stock exchange to join the ''$1 trillion club'' is the Spanish Stock Exchange (BME) at $851 billion market cap.

Some of the biggest companies listed include Spain’s two largest banks - Banco Santander and BBVA and global energy company Repsol. Brazilian Stock Exchange in Sao Paolo is second closest the $1 trillion market cap at $783 billion. If it does reach the $1 trillion market cap, it will become the first South American stock exchange to reach the milestone.

Other two exchanges closest to the milestone include the Singapore (SGX) and Moscow (MOEX) stock exchanges at $727 and $621 billion market cap respectively. By Klāvs Valters This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions.

Trading Forex and Derivatives carries a high level of risk.