NASDAQ 100 Index

NASDAQ 100 is an index that includes 100 of the largest companies illustrated and displayed in NASDAQ bourse which are not in the financial sector. The calculation of this index is based on a weighted factor/component of the market capitalization of the displayed 100 stocks. The 100 companies listed on this index are re-evaluated quarterly.

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

NASDAQ 100 Index - Is Us Tech 100 Same As Nasdaq?

The NASDAQ-100 Chart

The NASDAQ100 trade chart is displayed and illustrated & 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 as you as a trader can begin to trade it. Example displayed above is of NASDAQ 100 on MetaTrader 4 Forex Platform.

Other Data about NASDAQ100 Index

Official Symbol - QQQ:IND

The 100 constituent stocks which make up the NASDAQ-100 are calculated using a weighted factor for each stock. The constituent stocks & weighting for each stock is revised quarterly.

Strategy of Trade NASDAQ100 Index

NASDAQ100 method of calculating it makes it more volatile & therefore there are much wider swings in price movement of this index. The index has got a weighting component/constituent for each stock included on this stock index. Although this index generally moves upward over the long-term because US economy also shows strong and robust growth.

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

During Economic Slow-Down & Recession

During economic slow down & recession periods, firms begin reporting lower earnings, lower profits & lowers growth prospects. It is due to this reason that traders begin to sell stocks of companies which are recording & reporting lower profits & therefore stock index keeping track & monitoring of these particular specifed stocks will also begin to head & move downward.

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

Contracts & Specifications

Margin Requirement for 1 Lot - $ 30

Value per 1 Pip(Point) - $ 0.1

NB: Even though general and overall trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some days the index might oscillate or even retrace, market pull back may also be significant sometimes and hence as a trader you need to time your entry precisely using this trading strategy: trading strategy & at the same time use the suitable and appropriate/proper money management rules/guidelines in case there is unexpected volatility in the market movement. About equity management techniques/guidelines in stock index lessons: What is stock index equity management and stock index money management system/plan.

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