NASDAQ 100 Index

NASDAQ 100 is an index that include 100 of the largest companies listed in the NASDAQ stock exchange market which are not in the financial sector. The calculation of this stock index is based on weighted factor of market capitalization of listed 100 securities. The 100 companies listed on this index are reviewed quarterly.

The 100 companies used to calculate this index are not necessarily based in the USA: foreign international companies are also included as long as they are listed in the NASDAQ Stock Exchange.

The NASDAQ 100 Trade Chart

The NASDAQ 100 trade chart is displayed and illustrated above. On the example above this stock index is named as US100CASH. As a trader you want to find a broker that provides this NASDAQ 100 trade chart so that you can start to trade it. The example above is of NASDAQ 100 on the MT4 Software.

Other Trading Information about the NASDAQ 100 Index

Official Symbol - QQQ:IND

The 100 components stocks that makes up NASDAQ 100 are calculated using a weighted factor for each stock. The component stocks and weighting for each stock is reviewed quarterly.

Indices Trading System for NASDAQ 100 Stock Index

NASDAQ 100 method of calculation makes it more volatile and hence there are more wide swings in the price movements of this stock index. The Index has a weighting factor for each stock included on this index. Although this stock index generally moves up over longterm because the American economy also shows strong growth.

As a trader you want to be biased and keep buying as the stock index moves up. When the USA economy is doing well, stocks that makes up NASDAQ 100 index will keep gaining in values and thus this index is likely to keep heading in an upward trend. A good trading strategy to trade this Index would be to buy dips.

During Economic SlowDown and Recession

During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.

Therefore, during these times stock index trends are likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you are trading.

Contracts Specifications

Margin Required Per 1 Lot - $ 30

Value per 1 Pips - $ 0.1

NB: Even though the general trend is generally upward, as a trader you have to factor in the daily market volatility, on some days the stock index might oscillate or even retrace, stock index market retracement might also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock index trading strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About indices trading money management rules topics: What is money management & money management methods.