NASDAQ 100 Index
NASDAQ 100 is an index that include 100 of the largest firms illustrated in the NASDAQ Index exchange market that aren't in the financial sector. The calculation of this stock index is based on a weighted component of market capitalization of listed 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 listed in the NASDAQ Stocks Exchange Market.
NASDAQ 100 Index Trade Chart
NASDAQ100 Index trading chart is illustrated and displayed above. On above example this Index is named USA 100CASH. As a trader you want to find a broker that provides NASDAQ100 Index trading chart so that you as a trader can start to trade it. The example Which is illustrated above is that one of NASDAQ100 Stock Index on the MT4 FX and Software.
Other Info about NASDAQ 100 Index
Official Index Symbol - QQQ:IND
The 100 constituent stocks that make up NASDAQ100 Index are calculated using a weighted component for each stock. The component stocks and weighting for each Stock Index is re-evaluated quarterly.
Strategy to Trading NASDAQ100 Stock Index
NASDAQ100 Index formula of calculating makes it more volatile & hence there are wider swings(more volatile swings) in the price movement of this stock index. The stock index has a weighting component for each Index included on this stock index. Although this stock index in general moves upwards over longterm because the USA economy also indicates robust growth.
As a trader you want to be biased and keep buying as the stock index moves upwards. When the US economy is doing well, stocks that make up NASDAQ100 index will keep gaining in values and thus this stock index is likely to keep heading in an upwards trend. A good index trade strategy to trade this Stock Index would be to buy dips.
During Economic SlowDown and Recession
During economic slowdown & recession times, corporations start to report lower profits and lower growth prospect. It's due to and because of this reason that traders start to sell stocks of corporations that are reporting & recording lower profits and hence the Indices tracking these given stocks also will start to go downwards.
Hence, during these times, market trends are much more likely to be heading downwards & you as a trader should also adjust your trade strategy accordingly to suit the prevailing downwards trends of the index which you as a trader are trading.
Contracts & Details
Margin Required Per 1 Lot - $ 30
Value per Pips - $0.1 dollars
NB: Even though general and overall trend is generally moves upwards, as a trader you've to consider & factor in the daily market volatility, on some of the days the Index might move in a range or even retrace and retracement, market retracement/correction move might also be a large one at times & therefore as the trader you need to time your entry precisely using this trading strategy: Stock strategy & at same time use the proper and appropriate money management methods & guidelines just in case there is unexpected market trend volatility. About money management guidelines and strategies in indices topics: What is index equity management and money management system.
Get More Topics and Courses:
- How Can I Set FX Sell Stop Order in MetaTrader 4 Platform?
- Strategy for SWI 20 in FX
- FRA 40 MetaTrader 4 FRA 40 Name in MT4 Software
- Strategies for EUROSTOXX 50 Index
- Entry Stop Forex Orders: Buy Stop Forex Order and Sell Stop Order
- SMA, EMA, LWMA & SMMA MAs Indices Examples
- EURRUB System EURRUB Trade Strategy
- Setting up XAU USD Practice Account & MT4 Gold Platform