US 100 Index
US 100 is an index that includes 100 of the largest firms shown in US100 stock exchange market that aren't in financial sector. The calculation of this index is based on weighted factor of market capitalization of the shown 100 securities. The 100 corporations illustrated on this stock index are reviewed quarterly.
The 100 corporations used to calculate this index aren't necessarily based in US: international foreign firms are also included as long as they are shown in US100 Stock Exchange Market.
US 100 Chart
US 100 chart is shown & shown & displayed above. On example above this index is named as US100CASH. As a trader you want to find a broker that provides US 100 chart so that you as a trader can begin to trade it. The example Which is shown above is that one of US 100 on MT4 Platform Software.
Other Info about US 100 Index
Official Index Symbol - QQQ:IND
The 100 constituent stocks that make up the US-100 are calculated using a weighted factor for each stock. The component stocks and weighting for each stock is reviewed quarterly.
Trade System for US 100 Stock Index
US 100 approach of calculating makes it more volatile & hence there are wider swings in price movement of this stock index. The has a weighting component for each stock included on this index. Although this stock index generally moves upward over the longterm because USA economy also shows strong growth.
As a trader you want to be biased and keep buying as the stock index moves upwards. When American economy is doing well, stocks that make up the US 100 index will keep gaining in values and thus this index is likely to keep moving in an upwards trend. A good index trade strategy to trade this Stock Index would be to buy dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, corporations start to report lower profits and lower business growth prospects. It's due to this reason that traders start to sell stocks of corporations that arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.
Hence, during these times index trends are likely to be moving downwards & 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 Specs
Margin Requirement Per 1 Lot - $30 dollars
Value per 1 Pip - $0.1 dollars
NB: Even though general trend is generally moves upwards, as a stock indices trader you have to factor in daily market volatility, on some days the index might move in a range or even pullback, market pullbackretracement might also be significant at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About stock index money management guidelines courses: What's index equity management & index equity management strategies.
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