The Nasdaq US Tech 100 (US100) is a stock market index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq stock exchange, primarily in the technology and internet industries.
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Annual change
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All time High / Low
3691 / 20794.9
Buy
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Sell
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Daily price range:
Low
18857.3
High
18886.3
Nasdaq US Tech 100 Contract Specifications
Minimum Spreads, points: 0
Contract Size per Lot: 20
Swap type: Points
Swap Long: -42
Swap Short: -1.5
Margin Group: FX Majors
Margin Currency: USD
Tick size: 0
Trading Platform: MetaTrader 4
Minimum Volume: 0.01
Maximum Volume: 0
Trading Schedule EET: 00:00 - 23:59 Mon - Fri
Hedged Margin: 0
Days Swap: FX Wednesday, metals-indices-oil friday
History of Nasdaq
The NASDAQ stock exchange was founded in 1971 as the world’s first electronic stock market. It was created by the National Association of Securities Dealers (NASD), which is now known as the Financial Industry Regulatory Authority (FINRA). The NASDAQ stock market began operations on February 8, 1971.
Before the creation of NASDAQ, various stock exchanges already existed, including the Philadelphia Stock Exchange (founded in 1790), the Copenhagen Exchange (founded in 1808), and the Boston Exchange (founded in 1834).
Since its inception, NASDAQ has played a significant role in the trading of stocks, especially in technology companies. It has become a global electronic marketplace and the second-largest stock market exchange globally by market capitalization. Many well-known technology stocks, such as Apple and Microsoft, trade on NASDAQ.
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The Nasdaq stock exchange got its name from its original acronym, which stood for the National Association of Securities Dealers Automated Quotations. It was founded in 1971 by the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority. Over time, the acronym became widely recognized and the exchange continued to be referred to as the Nasdaq.
You can trade the NASDAQ index through various financial instruments and trading platforms. Here are the primary ways to trade the NASDAQ index:
Exchange-Traded Funds (ETFs):
NASDAQ ETFs are investment funds that track the performance of the NASDAQ Composite Index or other NASDAQ indices. Examples include the Invesco QQQ Trust (QQQ) and the ProShares UltraPro QQQ (TQQQ), which aim to provide returns that correspond to the index’s movements.
To trade NASDAQ ETFs, you need a brokerage account, and you can buy or sell shares just like individual stocks.
Futures Contracts:
NASDAQ futures contracts are financial derivatives that allow you to speculate on the future price of the NASDAQ index. These contracts have expiration dates and are traded on futures exchanges.
To trade NASDAQ futures, you need a futures trading account with a brokerage that offers access to these contracts. Futures trading typically requires higher capital and carries higher risk.
Options Contracts:
NASDAQ options are derivatives that provide the right, but not the obligation, to buy or sell NASDAQ index futures or ETFs at a specified price (strike price) before or on a predetermined expiration date.
Trading options on the NASDAQ index requires an options trading account with a brokerage. It can be a more advanced trading strategy and may involve complex option strategies.
Contract for Difference (CFD):
CFDs are derivatives that allow you to speculate on the price movements of the NASDAQ index without owning the underlying asset. CFD trading is offered by many online brokers.
CFDs enable traders to go long (buy) or short (sell) the NASDAQ index, and they can provide leverage, which can amplify both profits and losses.
Mutual Funds and Managed Accounts:
Some mutual funds and managed accounts are designed to replicate the performance of the NASDAQ index. Investors can allocate their capital to these funds or accounts, which are managed by professional portfolio managers.
Here are the general steps to trade the NASDAQ index:
Choose a Trading Instrument: Decide which financial instrument you want to use to trade the NASDAQ index (e.g., ETFs, futures, options, CFDs).
Select a Broker: Open an account with a reputable online broker that offers access to the chosen trading instrument. Ensure the broker provides the necessary tools and resources for trading indices.
Fund Your Account: Deposit funds into your trading account. The amount you deposit will depend on your trading strategy and risk tolerance.
Develop a Trading Plan: Create a trading plan that outlines your strategy, risk management rules, and trading goals. Define entry and exit points, stop-loss levels, and take-profit targets.
Place Trades: Use your broker’s trading platform to place trades based on your trading plan. Monitor your positions and manage them according to your plan.
Risk Management: Implement risk management techniques, such as setting stop-loss orders and position sizing, to protect your capital.
Stay Informed: Keep abreast of market news, economic releases, and events that can impact the NASDAQ index. Monitor your trades and adjust your strategy as needed.
Review and Learn: After each trade, evaluate your performance and learn from your experiences. Continuously improve your trading skills and adapt to changing market conditions.
Remember that trading the NASDAQ index or any financial instrument carries risks, and it’s essential to have a well-defined trading plan and risk management strategy in place. Additionally, be aware of trading costs, fees, and tax implications associated with your trading activities.
Trading the NASDAQ stock market, which is known for its focus on technology and growth stocks, requires various strategies tailored to its unique characteristics. Here are some popular trading strategies used by traders when trading the NASDAQ:
Trend Following: Traders employing this strategy aim to identify and follow the prevailing trends in NASDAQ-listed stocks. They may use technical indicators like moving averages, trendlines, and Relative Strength Index (RSI) to confirm trends and capture price momentum.
Momentum Trading: Momentum traders focus on stocks with strong recent price movements and trading volumes. They enter positions with the expectation that the momentum will continue, allowing them to profit from short- to medium-term price swings.
Breakout Trading: Breakout traders look for stocks that are approaching key support or resistance levels. They enter trades when a stock breaks out of these levels, expecting a significant price movement in the breakout direction.
Swing Trading: Swing traders aim to profit from the short- to medium-term price swings within NASDAQ-listed stocks. They often use technical analysis, chart patterns, and technical indicators to identify potential swing trade setups.
Day Trading: Day traders buy and sell stocks within the same trading day. They focus on capturing intraday price movements, often using technical analysis and short-term indicators to make quick trading decisions.
Pairs Trading: Pairs traders seek to profit from relative price movements between two correlated NASDAQ-listed stocks. They simultaneously take long and short positions in the two stocks, betting on the convergence or divergence of their prices.
Event-Based Trading: Traders may react to specific events affecting NASDAQ-listed stocks, such as earnings releases, product announcements, or corporate developments. They analyze the potential impact of these events on stock prices and make trading decisions accordingly.
Volatility Trading: Volatility traders take advantage of price volatility in NASDAQ-listed stocks. They may use options strategies, such as straddles or strangles, to profit from anticipated price fluctuations.
Algorithmic Trading: Algorithmic traders use computer programs to execute trading strategies automatically. These strategies can range from high-frequency trading to statistical arbitrage and quantitative analysis.
Arbitrage: Arbitrageurs look for price discrepancies between NASDAQ-listed stocks and related assets, such as futures contracts or options. They aim to profit from these price differences through simultaneous buy and sell orders.
Market Sentiment Analysis: Some traders focus on market sentiment indicators, such as news sentiment, social media sentiment, or options market sentiment, to gauge market sentiment and make trading decisions based on crowd behavior.
Scalping: Scalpers seek to profit from very short-term price movements by making a large number of quick trades. They aim to capture small profits from small price fluctuations.
It’s essential to note that the NASDAQ market is known for its high volatility and sensitivity to news and events, particularly in the technology sector. Traders should conduct thorough research, manage risk effectively, and adapt their strategies to changing market conditions when trading the NASDAQ. Additionally, it’s crucial to stay updated on the latest news and developments that may impact NASDAQ-listed stocks.
When trading the NASDAQ stock market, various factors can significantly influence stock prices and overall market sentiment. Understanding these factors and their impact is crucial for traders. Here are key factors that can affect trading on the NASDAQ:
Earnings Reports: Quarterly and annual earnings reports released by companies listed on the NASDAQ can have a substantial impact on stock prices. Positive earnings surprises can lead to stock price rallies, while negative surprises can lead to declines.
Technological Developments: Given the NASDAQ’s focus on technology companies, technological advancements, product launches, and innovation in the tech sector can influence stock prices and market sentiment.
Macroeconomic Indicators: Economic data releases, such as GDP growth, employment reports, inflation rates, and interest rate changes, can affect overall market sentiment on the NASDAQ by influencing investor expectations for economic conditions.
Federal Reserve Policy: The monetary policy decisions of the Federal Reserve, including changes in interest rates and bond-buying programs, can impact market sentiment and influence stock prices on the NASDAQ.
Market Sentiment: Investor sentiment, which can be influenced by news, events, and economic conditions, plays a significant role in stock price movements on the NASDAQ. Positive sentiment can drive bullish rallies, while negative sentiment can lead to sell-offs.
Political Events: Political developments, such as elections, government policies, trade disputes, and international relations, can affect stock prices on the NASDAQ, particularly for companies sensitive to government regulations and global trade.
Global Events: Events like geopolitical tensions, natural disasters, and global economic crises can have a broad impact on stock markets, including the NASDAQ.
Company-Specific News: News related to individual companies, including product launches, mergers and acquisitions, leadership changes, and legal issues, can significantly affect the stock prices of those companies and related sectors.
Market Volatility: The NASDAQ is known for its higher volatility compared to other stock indices. Sudden spikes in volatility can lead to rapid price movements, impacting trading strategies and risk management.
Sector Rotation: Investors may rotate between different sectors of the NASDAQ, favoring sectors that are currently performing well or perceived as having strong growth prospects.
Market Liquidity: Liquidity, or the ease of buying and selling stocks, can impact the execution of trades and spreads. Lower liquidity can result in larger bid-ask spreads.
Technological Glitches: Given the electronic nature of the NASDAQ, technical glitches or trading system failures can disrupt trading and impact stock prices.
Regulatory Changes: Changes in financial regulations, tax laws, or market rules can affect trading practices and market behavior on the NASDAQ.
Currency Exchange Rates: For international traders, fluctuations in currency exchange rates can impact returns when converting profits back to their home currencies.
Hedge Funds and Institutional Activity: The actions of large institutional investors, hedge funds, and algorithmic traders can influence stock prices and market movements on the NASDAQ.
Traders need to stay informed about these factors and assess their potential impact on the market and specific stocks they are trading. Additionally, having a well-defined trading plan and risk management strategy can help mitigate the effects of these factors on trading outcomes.
