NASDAQ 100 Index

NASDAQ 100 is an index that includes 100 of the largest corporations 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 corporations listed on this index are re-evaluated quarterly.

The 100 corporations 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 Information about NASDAQ100 Index

Official Symbol - QQQ:IND

The 100 component 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 and therefore there are much wider swings in price movement of this index. The index has got a weighting component for each stock included on this index. Although this index generally moves upward over the long-term because US economy also shows strong and robust growth.

As a trader you want to be biased and keep buying as the index moves 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 and Recession

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

Hence, during these market times, the trends are likely to be moving downwards & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're 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 upwards, as a stock indices trader you've got to factor in daily market volatility, on some days the stock index might oscillate or even retrace, market pull back may also be significant sometimes and therefore as a trader you need to time your entry precisely using this trading strategy: trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market movement. About equity management rules in stock index lessons: What is stock index equity management & stock index money management methods.

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