NASDAQ 100 Index
The NASDAQ100 is an index that includes 100 of the largest companies listed in the NASDAQ stock exchange market which are not in the financial sector. The calculation of this index is based on a weighted component of market capitalization of the listed 100 securities. The 100 corporations listed on this index are revised quarterly.
The 100 corporations used to calculate this index are not necessarily based in the USA: foreign international companies are also included as long as they are listed in the NASDAQ Bourse.
The NASDAQ100 Index Chart
The NASDAQ 100 Index chart is shown above. On the illustration put on display above this stock index is named as US100CASH . As a forex trader you want to find a broker that provides this The NASDAQ 100 Index chart so that you as a trader can start to trade it. The example above is of NASDAQ100 Index on the MT4 FX & Indices Software Platform .
Other Data about NASDAQ 100 Index
Official Symbol - QQQ:IND
The 100 component stocks that make up the NASDAQ 100 Index are calculated using a weighted component for each stock. The component stocks and weighting for each stock is re-evaluated quarterly.
Strategy for Trading NASDAQ100 Index
The NASDAQ 100 Index method of calculation makes it more volatile therefore there are more wide swings in the price moves of this index. The Index has a weighting factor for each stock included on this index. Although this index generally moves up over the long term because the American economy also shows strong and robust growth.
As a index trader you want to be more biased and keep buying as the stock index moves and heads upwards. When the USA economy is doing well, the stocks that make up the NASDAQ 100 index will keep gaining in values and thus this index is likely to keep moving in an upwards trend. A good strategy to trade this Index would be to buy the dips.
Contracts and Specifications
Margin Required Per 1 Lot - $ 30
Value of 1 Pip(Point) - $ 0.1 dollars
Note: Even though the overall trend is in general upwards, as a forex trader you have got to factor in the daily price volatility, on some days the stock might oscillate or even retrace, the retracement may also be substantial some times and thence as a currency trader you need to time your trade entry accurately using this strategy: Indices trading strategy & at the same time use suitable & proper/suitable money management principles & guidelines in case there's unexpected price market trend volatility. About money management rules topics: What's money management and money management methods.
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