NASDAQ 100 Index

The NASDAQ 100 is an index that include 100 of the biggest companies shown in NASDAQ Stock Indices exchange market which are not in financial sector. The calculation of this Stock Indexes is based on weighted factor of market capitalization of displayed 100 securities. The 100 companies shown on this stock index are reevaluated quarterly.

The 100 companies used to calculate this stock index are not necessarily based in USA: foreign international companies are also included as long as they are displayed in NASDAQ Stock Exchange.

The NASDAQ 100 Index Trading Chart

The NASDAQ 100 Stock Indices trade chart is shown and illustrated above. On the above example this Stock Indexes is named US 100CASH. As a trader you want to find a broker that provides NASDAQ 100 Stock Indices trade chart so that you can begin to trade it. The Indices example above is of NASDAQ 100 Stock Indices on MT4 Forex and Indices Trade Software.

Other Information about NASDAQ 100 Stock Indices

Official Indices Symbol - QQQ:IND

The 100 component stocks that makes up NASDAQ 100 Index are calculated using a weighted factor for each stock. The components stocks & weighting for each Stock Indexes is reviewed quarterly.

Indices Trade Strategy for Trading NASDAQ 100 Index

The NASDAQ 100 Index method of calculating makes it more volatile & therefore there are more wide swings in price movement of this Stock Indexes. The Stock Index has a weighting factor for each Stock Indexes included on this stock index. Although this stock index in general moves upward over long-term because American economy also shows strong growth.

As a trader you want to be biased & keep buying as the index moves upward. When America economy is doing well, the stocks that makes up NASDAQ 100 index will keep gaining in values & thus this stock index is likely to keep heading in an upwards trend. A good strategy to trade this Stock Index would be to buy the dips.

During Economic Slow-Down & Recession

During economic slow-down & recession times, companies begin to report lower profits & lower growth prospect. It is because to this reason that traders begin to sell stocks of companiesthat are reporting lower profits & therefore Indices tracking these specified stocks will also begin to move downward.

Therefore, during these times Stock Indexes trends are likely to be moving downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you are trading.

Contract Specifications

Margin Requirement Per Lot - $ 30

Value per Pips - $ 0.1

Note: Even though general trend is generally upwards, as a trader you have to consider & factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the Indices market retracement move might also be a significant one at times & therefore as a trader you need to time your trade entry precisely using this trade strategy: Stock index trading strategy and at same time use proper money management guidelines just in case there is more unexpected volatility in the market trend. About money management methods in stock indices trading topics: What is Stock Indexes money management & stock indices trading money management strategies.