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.
All time High / Low
3119.2 / 16767.9
Daily price range:
Nasdaq US Tech 100 Contract Specifications
Minimum Spreads, points: 0
Contract Size per Lot: 20
Swap type: Points
Swap Long: -29
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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NASDAQ stands for the “National Association of Securities Dealers Automated Quotations.” It is an American stock exchange that is known for its electronic trading platform and its focus on technology and internet-related companies. Here are some key points about NASDAQ:
Electronic Exchange: NASDAQ is one of the world’s largest electronic stock exchanges, where buyers and sellers trade securities, such as stocks, through a computerized system. Unlike traditional stock exchanges with a physical trading floor, NASDAQ operates entirely electronically.
Technology Focus: NASDAQ is particularly well-known for listing technology companies, including many prominent tech giants like Apple, Microsoft, Amazon, and Google’s parent company, Alphabet. It has a reputation for being a hub for innovative and high-growth companies.
Market Indices: NASDAQ maintains several stock market indices, with the NASDAQ Composite Index being one of the most famous. The NASDAQ Composite includes thousands of companies listed on the exchange, providing a broad view of the performance of technology and other sectors.
Listing Requirements: Companies that want to be listed on NASDAQ must meet specific listing requirements related to financial performance, corporate governance, and other criteria. These requirements are designed to ensure transparency and investor protection.
History: NASDAQ was founded in 1971 as the world’s first electronic stock market. It was created by the National Association of Securities Dealers (NASD), which later merged with the regulatory arm of the New York Stock Exchange (NYSE) to form the Financial Industry Regulatory Authority (FINRA).
Market Hours: NASDAQ has regular trading hours, typically from 9:30 AM to 4:00 PM Eastern Time (ET) on trading days. However, it also offers pre-market and after-hours trading sessions, allowing investors to trade outside of regular hours.
Market Technology: NASDAQ is known for its technological innovation, including the development of electronic trading platforms and the introduction of the Market Maker system, which facilitates trading by market participants.
Diverse Listing: While NASDAQ is known for technology companies, it lists a wide range of businesses across various sectors, including finance, healthcare, consumer goods, and more.
Global Reach: NASDAQ has a global presence, with offices and connections in various countries, allowing it to facilitate international trading.
Overall, NASDAQ is a prominent stock exchange in the United States and globally, known for its electronic trading platform and its role in supporting technology and innovation in the financial markets. It has played a significant part in the growth of the technology sector and the evolution of modern financial markets.
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.
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.
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.
The trading hours for the NASDAQ stock exchange, where the NASDAQ Composite Index and many technology-related stocks are traded, are as follows:
Regular Trading Hours (RTH): The standard trading hours for the NASDAQ stock market are from 9:30 AM to 4:00 PM Eastern Time (ET) on regular trading days. This is known as the “core trading session.”
Pre-Market Trading: NASDAQ offers a pre-market trading session before the regular market hours. Pre-market trading typically begins at 4:00 AM ET and extends until the opening bell at 9:30 AM ET.
After-Hours Trading: After-hours trading on NASDAQ takes place after the close of the regular trading session. It typically continues from 4:00 PM to 8:00 PM ET.
Extended Hours Trading: In addition to the pre-market and after-hours trading sessions, some brokerage firms offer extended hours trading, which allows traders to buy and sell securities outside of the standard trading hours. The specific hours for extended hours trading can vary by broker.
Please note that not all stocks and securities are available for trading during pre-market and after-hours sessions. Liquidity can be lower during these extended trading hours, and spreads may be wider, leading to potentially higher trading costs.
It’s also important to check with your brokerage or trading platform for the most up-to-date information on trading hours, as there can be variations and exceptions, especially during holidays or special events. Additionally, trading hours may be subject to change, so it’s essential to verify the current trading schedule to plan your trades accordingly.
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.