What is US 100 Trade System? - Learn Trading US 100 Index

The US 100 Trade Chart

The US 100 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 US 100 trade chart so that you can begin to trade it. The example shown above is of US 100 on MT4 Platform.

Indices Trade System for US 100 Index

US 100 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 US 100 Stock 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 index trading money management rules courses: What is index money management and stock index trading money management methods.