NASDAQ 100 Index

NASDAQ 100 is an stock index that includes 100 of the biggest companies displayed and shown in NASDAQ stock exchange that are not in the financial sector. The calculation of this index is based on a weighted factor of the market capitalization of the shown 100 stocks. The 100 firms displayed on this stock index are revised quarterly.

The 100 firms used to calculate this index are not necessarily based in USA: international foreign companies are also included as long as they are shown in NASDAQ100 Stock Exchange Market.

Best Strategies to Trading US100 Guide - Download US100 Strategies Tutorial

NASDAQ 100 Trading Chart

NASDAQ 100 chart is displayed & illustrated and shown above. On the example put on display above this stock index is named as US100CASH. As a trader you want to find a broker that provides NASDAQ 100 chart so that you as a trader can begin to trade it. The example That is displayed above is that of NASDAQ 100 on MetaTrader 4 Forex & Index Platform.

Other Information about NASDAQ100 Index

Official Stock Index Symbol - QQQ:IND

The 100 constituent stocks which constitute the NASDAQ-100 are calculated using a weighted factor for each stock. The components stocks and weighting for each stock is re-evaluated quarterly.

Strategy for Trading/Transacting NASDAQ100 Index

NASDAQ100 technique/formula of calculating it makes it more volatile & hence there are more wide swings in the price movement of this index. The stock index has got a weighting factor for each stock included on this index. Although this stock index in general moves upward over the long-term because American economy also shows strong and robust growth.

As a trader you want to be biased & keep buying as the index moves upward. When America economy is doing well, stocks which make up the NASDAQ100 stock index will keep gaining in values and thus this stock index is likely to keep moving in an upwards trend. A good stock index trade strategy to trade this Index would be to buy the market dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, companies start to report lower profits & lower growth prospects. It is because of this reason that investors start to sell stocks of companies that arereporting lower profits & hence index tracking these particular stocks will also start to move downward.

Therefore, during these times, market trends are likely to be moving downward & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.

Contracts and Specifications

Margin Requirement Per 1 Lot - $30

Value per 1 Pip(Point) - $ 0.1

NB: Even though general trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be significant some times and hence as a trader you need to time your entry precisely when using this trade strategy: Stock Index trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market. About money management rules in stock index lessons: What's money management & money management strategies.

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