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 companies displayed on this stock index are reviewed quarterly.

The 100 companies used to calculate this stock index aren't necessarily based in USA: international foreign companies are also included so long as they are shown in NASDAQ100 Stock Exchange Market.

Best Strategies to Trading US100 Guide - Download US100 Strategies Tutorial

NASDAQ 100 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 offers NASDAQ 100 chart so that you as a trader can begin & start to trade it. The example That's displayed above is that of NASDAQ 100 on MT4 FX & Index Platform.

Other Data about NASDAQ100 Index

Official Stock Index Symbol - QQQ:IND

The 100 component stocks which constitute the NASDAQ-100 are calculated using a weighted factor for each stock. The component 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 and hence there are more wide swings in price movement of this index. The 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 USA economy also shows strong and robust growth.

As a index trader you want to be biased & keep on buying as the index moves upward. When America economic & business environment is doing well & good, stocks which make up the NASDAQ100 stock index will keep increasing 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 Index would be to buy the market dips.

During Economic Slow-Down & Recession

During economic slow down recession periods, companies start reporting slower earnings and revenues, slower profits & lowers business growth forecast. It is because of this reason that traders begin to sell stocks/shares of companies that are recording and reporting lower profits & hence index tracking these particular stocks will also start to move downwards.

Therefore, during these times, market trends are more likely to be heading downward & as a trader you should also adjust your trading strategy accordingly to fit the current downward trends of the stock market index which you are trading.

Contracts and Specifications

Margin Requirement Per 1 Lot/Contract - $30

Value per 1 Pip(Point) - $ 0.1

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

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