Forex trading Guide

A Comprehensive Guide About The Business And Trading The Nasdaq100 Index

NASDAQ100 index is nothing but simply the index of the hundred most active and the largest traded firms listed on the stock exchange-NASDAQ. The index serves as a benchmark index for the United States technology stocks, although it even includes firms in the industrial, retail, health sectors, and biotechnology.

Traders enjoy following the NASDAQ100 index as it provides exposure to actual market action price and daily fluctuation. NASDAQ is known and famous for its volatility and volume compared to the several other significant indices and is guarded by the security of stern US regulation, overlooking, and the rules of the federal exchange.

The trading hours of NASDAQ100 

The major trading hrs for the NASDAQ100 index are anywhere between 09:30 to 16:00 (EST). However, the index price NASDAQ is even calculated during the pre-market trading hrs (04:00 to 09:30 EST) and even after-market trading hours between 16:00 to 20:00 EST.

One can go on to trade live 24 hrs every day with the website and also monitor the changes in price using their NASDAQ100 chart.

How does one go about trading NASDAQ100 CFD?

The price of NASDAQ 100 typically supplies traders with a higher degree of long trading hrs, tight spreads, & liquidity. A few of the biggest technology companies in a global market region are NASDAQ100 companies.

One can go on to trading the NASDAQ100 index lives by using the CFDs (i.e., contracts for difference). Using the CFDs for trading the NASDAQ100 will let you go short or long without dealing with the traditional exchanges.

How is NASDAQ100 calculated?

Like any other worldwide stock market rule, the NASDAQ100 index goes on to tracks the basket of different companies, and alterations in their prices will impact the index during the day of trading.

The usefulness of the NASDAQ100 index matches the aggregate amount of index share powers of every security, multiplied via every security’s immediate sale price, then divided via the very divisor of an index.

To trade on the NASDAQ100 index, the firm must be registered on NASDAQ in Global Market tiers or Global Select. NASDAQ listed firms must also:

  • Possess an avg day-to-day volume of some 200,000 shares
  • Be free of bankruptcy proceedings
  • Be openly given for a minimum of 3 months
  • Submit quarterly and the annual reports

Nowadays, companies that are trading on NASDAQ are quarterly reviewed– they’re removed or added based on the magnitude of the market cap. No firm can have over 24 per cent weighting.

However, the NASDAQ100 shouldn’t be mixed with the NASDAQ Composite: The latter holds about 3,000 stocks that’s traded there on the NASDAQ exchange. It’s responsible for about 67% of the entire market cap of a larger, more comprehensive NASDAQ Composite.

So there you have it. That’s very much your guide to go about trading the NASDAQ100 index. To know further, you may click on the link –

Ernestina Chacko is a writer and a photographer. Before joining, she was a senior contributor at Bloomberg USA.