NASDAQ 100 Index

The NASDAQ 100 is an index that includes 100 of the largest companies listed in the NASDAQ stock exchange market that are not in the financial sector. The calculation of this index is based on weighted factor of market capitalization of the listed 100 securities. The 100 companies listed on this index are reviewed quarterly.

The 100 companies 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 Stock Exchange.

The NASDAQ 100 Index Chart

The NASDAQ 100 Index chart is shown above. On the example above this stock index is named as US100CASH . As a trader you want to find a broker that provides this The NASDAQ 100 Index chart so that you can start to trade it. The example above is of NASDAQ 100 Index on the MetaTrader 4 Forex & Indices Platform .

Other Information about NASDAQ 100 Index

Official Symbol - QQQ:IND

The 100 component stocks that make up the NASDAQ 100 Index are calculated using a weighted factor for each stock. The component stocks and weighting for each stock is reviewed quarterly.

Strategy for Trading NASDAQ 100 Index

The NASDAQ 100 Index method of calculation makes it more volatile hence there are more wide swings in the price movements 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 growth.

As a trader you want to be biased and keep buying as the index moves up. 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 upward trend. A good strategy to trade this Index would be to buy the dips.

Contracts and Specifications

Margin Required Per 1 Lot - $ 30

Value per 1 Pip - $ 0.1

Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock might oscillate or even retrace, the retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock indices trading strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules topics: What is money management and money management methods.