What is US100 Trade System? - Learn US100 Stock Index

US100 Chart

US100 chart is displayed & illustrated above. On above example this Stock Index is named US 100CASH. As a trader you want to find a broker that provides US100 chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of US100 Stock Index on MetaTrader 4.

Strategy to Trading US100 Stock Indices

US100 Stock Indices 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 upwards over longterm because USA economy also shows strong growth.

As a trader you want to be biased & keep buying as the stock index moves upwards. When USA economy is performing good, the stocks that constitute US100 Stock Indices 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 keep buying the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, corporations start to report lower profits and lower growth prospect. It's due to this reason that traders start to sell stocks of firms that are reporting lower profits and hence Stock Indices tracking these specified stocks also will begin to move downward.

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

Contract Specs

Margin Requirement Per Lot - $ 30

Value per Pips - $ 0.1

Note: Even though general trend is generally moves upwards, as a trader you've to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the market pullbackretracement move might also be a substantial one at times and therefore as a trader you need to mark-time your entry precisely using this trading strategy: Stock Index trading strategy & at same time use proper money management guide-lines just in case there's more unexpected volatility in the market trend. About stock index money management guidelines courses: What's index equity management & stock index money management strategies.