NASDAQ 100 Index

NASDAQ 100 is an stock index that includes 100 of the biggest companies shown in NASDAQ stock exchange that are not in the financial sector. The calculation of this index is based on weighted factor of market capitalization of the shown 100 securities. The 100 firms shown 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 NASDAQ Stock Exchange.

Best Strategies to Trading US100 Guide - Download US100 Strategies Tutorial

NASDAQ 100 Trading Chart

NASDAQ 100 chart is shown & illustrated and shown above. On the example 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 can begin to trade it. The example That is shown above is that of NASDAQ 100 on MetaTrader 4 Forex & Stock Indices Platform.

Other Information about NASDAQ 100 Index

Official Stock Indices 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 revised quarterly.

Strategy for Trading NASDAQ 100 Stock Index

NASDAQ 100 technique of calculating makes it more volatile & hence there are more wide swings in the price movement of this index. The has 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 growth.

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

During Economic Slow-Down and Recession

During economic slow-down & recession times, firms start to report lower profits & lower business 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 1Pip - $ 0.1

NB: Even though general trend is generally move upward, as a stock indices trader you have 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 at times and hence as a trader you need to time your trade entry precisely when using this trade strategy: Indices 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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