UsTec 100 Index
UsTec 100 is an index that includes 100 of the largest corporations displayed in UsTec100 bourse which are not in the financial sector. The calculation of this stock index is based on weighted factor of market capitalization of the displayed 100 securities. 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: foreign international companies are also included as long as they're displayed in UsTec100 Bourse.
The UsTec 100 Chart
The UsTec 100 trade chart is displayed & shown & displayed above. On the example above this index is named as US100CASH. As a trader you want to find a broker that provides UsTec 100 trade chart so that you as a trader can start to trade it. Example displayed above is of US Tec 100 on MT4 Forex and Platform.
Other Information about UsTec 100 Stock Index
Index Symbol - QQQ:IND
The 100 constituent stocks which constitute UsTec100 are calculated using a weighted factor for each stock. The constituent stocks and weighting for each stock is reviewed quarterly.
Strategy of Trading UsTec 100 Stock Index
UsTec 100 recipe of calculating makes it more volatile & therefore there are much more wider swings in the price movement of this stock index. The has a weighting component for each stock included on this index. Although this stock index generally move 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 UsTec 100 stock index will keep gaining in values & thus this index is likely to keep moving in an upwards trend. A good indices trade strategy to trade this Stock 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 business 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 will also start to move downward.
Hence, during these times, market trends are likely to be moving downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.
Contracts and Details
Margin Requirement for 1 Lot - $ 30
Value per 1Pip - $ 0.1
NB: Even though general trend is generally move upwards, as a stock index trader you have to factor in daily market volatility, on some days the stock index might 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 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 index lessons: What is equity management and equity management strategies.
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