NASDAQ 100 Stock Index

NASDAQ 100 is an index that includes 100 of the biggest companies shown in NASDAQ stock exchange market that are not in financial sector. The calculation of this index is based on weighted factor of market capitalization of the 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 Stock Index Trade Chart

The NASDAQ 100 Stock Index trade chart is displayed & illustrated and shown above. On the example above this index is named as US100CASH. As a trader you want to find a broker that provides NASDAQ 100 Stock Index trade chart so that you can begin to trade it. The index example above is of NASDAQ 100 Stock Index on MT4 Forex & Indices Trading Platform.

Other Information about NASDAQ 100 Stock Index

Official Symbol - QQQ:IND

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

Strategy for Trading NASDAQ 100 Stock Index

NASDAQ 100 Stock Index method of calculating makes it more volatile & therefore there are more wide swings in price movement of this index. The Stock Index has a weighting factor for each stock included on this stock index. Although this index in general moves upward over the 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, stocks that make up the NASDAQ 100 index will keep gaining in values & thus this stock index is likely to keep moving in an upwards trend. A good strategy to trade this Stock Index would be to buy dips.

During Economic Slow-Down & Recession

During economic slow-down & recession times, companies begin to report lower profits & lower business growth prospects. It is because to this reason that investors begin to sell stocks of companies reporting lower profits & therefore index tracking these particular stocks will also start to move downward.

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

Contracts & Specifications

Margin Requirement Per 1 Lot - $ 30

Value per 1 Pips - $ 0.1

NB: Even though general trend is generally upward, as a trader you've to factor in daily market volatility, on some days the index might oscillate or even retrace, index market retracement may also be significant at times & therefore as a trader you need to time your entry precisely using this trade strategy: Indices trade 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 in stock index trading topics: What is index money management and index money management methods.