NASDAQ 100 Index
NASDAQ 100 is an stock index that include 100 of the biggest companies shown in NASDAQ Indices exchange market that are not in the financial sector. The calculation of this Stock Index is based on weighted factor of market capitalization of shown 100 securities. The 100 firms shown on this index are revised quarterly.
The 100 firms used to calculate this stock index are not necessarily based in USA: international foreign companies are also included as long as they are shown in NASDAQ Stock Exchange.
NASDAQ 100 Chart
NASDAQ 100 chart is shown and illustrated above. On the above example this Stock Index is named US 100CASH. As a trader you want to find a broker that provides NASDAQ 100 chart so that you can begin to trade it. The example That is illustrated above is that of NASDAQ 100 Stock Indices on MetaTrader 4 Forex Software.
Other Information about NASDAQ 100 Indices
Official Indices Symbol - QQQ:IND
The 100 component stocks that makes up the NASDAQ 100 Stock Index are calculated using a weighted factor for each stock. The components stocks and weighting for each Stock Index is revised quarterly.
Trade System for Trading NASDAQ 100 Index
NASDAQ 100 Stock Index method of calculating makes it more volatile and hence there are more wide swings in the price movement of this Stock Index. The has a weighting factor for each Index included on this stock index. Although this index in general moves upwards over long-term because American economy also shows strong growth.
As a trader you want to be biased and keep buying as the stock index moves upward. When America economy is doing well, the stocks that makes up the NASDAQ 100 index will keep gaining in values & thus this stock index is likely to keep heading in an upward trend. A good stock index trade strategy to trade this Index would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits & hence Indices tracking these specified stocks will also start to move downward.
Therefore, during these times, market 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 index that you're trading.
Contract Specifications
Margin Requirement Per Lot - $ 30
Value per Pips - $ 0.1
Note: Even though general trend is generally moves upwards, as a trader you have to consider and factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace and pull-back, the market retracement move might also be a significant one at times & hence as a trader you need to mark-time your trade entry precisely using this trade strategy: Stock index trading strategy & at same the time use proper money management guidelines just in case there is more unexpected volatility in the market. About indices equity management guidelines courses: What's equity management and equity management strategies.
