NASDAQ 100 Stock Index

NASDAQ 100 is an index that include 100 of the largest firms illustrated in the NASDAQ Stock Index exchange market that aren't in the financial sector. The calculation of this stock index is based on weighted factor of market capitalization of listed 100 securities. The 100 corporations illustrated on this 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 Stock Exchange Market.

NASDAQ 100 Stock Index Trade Chart

NASDAQ 100 Stock Index trading chart is illustrated & displayed above. On above example this Stock Index is named US 100CASH. As a trader you want to find a broker that provides NASDAQ 100 Stock Index trading chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of NASDAQ 100 Stock Index on the MT4 FX and Software.

Other Info about NASDAQ 100 Stock Index

Official Index Symbol - QQQ:IND

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

Strategy to Trading NASDAQ 100 Stock Index

NASDAQ 100 Stock Index technique of calculating makes it more volatile and hence there are wider swings in price movement of this stock index. The has a weighting component for each Stock Index included on this index. Although this stock index generally moves upward over longterm because the USA economy also shows strong growth.

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

During Economic SlowDown & Recession

During economic slowdown & recession times, corporations begin to report lower profits and lower growth prospect. It's due to this reason that traders begin to sell stocks of corporations that are reporting lower profits and hence the Stock Indices tracking these specified stocks will also begin to move downwards.

Hence, during these times trends are likely to be heading downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you're trading.

Contracts and Details

Margin Required Per 1Lot - $ 30

Value per Pips - $ 0.1

NB: Even though general trend is generally upwards, as a trader you've to consider and factor in the daily market volatility, on some of the days the Stock Indices might move in a range or even retrace & pullback, market pullback move might also be a significant one at times and hence as a trader you need to mark-time your entry precisely using this trading strategy: Stock strategy and at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About equity management methods in indices topics: What's Stock index equity management and equity management methods.