NASDAQ 100 Stock Index

NASDAQ 100 is an index that includes 100 of the largest corporations displayed in NASDAQ bourse which are not in the financial sector. The calculation of this index is based on weighted factor of market capitalization of the displayed 100 securities. The 100 companies displayed on this stock index are re-evaluated quarterly.

The 100 companies used to calculate this stock index aren't necessarily based in USA: foreign international companies are also included as long as they're displayed in NASDAQ Bourse.

The NASDAQ 100 Trade Chart

The NASDAQ 100 trade chart is displayed and shown & displayed above. On the example above this index is named as US100CASH. As a trader you want to find a broker that provides NASDAQ 100 trade chart so that you as a trader can begin to trade it. Example displayed above is of NASDAQ 100 on MT4 Forex Trading Software.

Other Information about NASDAQ 100 Index

Official Symbol - QQQ:IND

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

Strategy of Trading NASDAQ 100 Index

NASDAQ 100 method of calculating makes it more volatile and therefore there are much more wider swings in the price movement of this index. The has a weighting component for each stock included on this stock index. Although this index generally upwards over the long term because US economy also shows strong growth.

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

During Economic Slow-Down & Recession

During economic slow-down & recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that traders start to sell stocks of companies which arereporting lower profits and therefore index tracking these particular stocks will also begin to move downward.

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

Contracts and Specifications

Margin Requirement for 1 Lot - $ 30

Value per 1Pip - $ 0.1

NB: Even though general trend is generally upwards, as a trader you've to factor in daily market volatility, on some days the index may oscillate or even retrace, market pull back may also be substantial at times and therefore as a trader you need to time your trade entry precisely using this strategy: trade strategy and at the same time use proper money management principles just in case of more unexpected volatility in the market movement. About equity management principles in stock index topics: What is index equity management & index equity management methods.