The NASDAQ100 is an index of the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. This index focuses on top-performing industries such as technology (54%), consumer services (25%), and healthcare (21%). This index tracks the performance of the world’s most innovative companies, including Apple, Google, Intel, and Tesla. The NASDAQ is the primary benchmark for US technology stocks. Meanwhile, if you also need to find other Brokers who deal with NAS100, you can go to http://www.volatility75.net/nas100brokers.html right away.
Can be described by a basket of companies that issue shares. The NASDAQ index follows the changes in the prices of these shares. This index is popular because of its daily volatility. So it is very attractive to traders all over the world.
How do you calculate it?
The NASDAQ index is a market capitalization-weighted index. The value of this index is equivalent to the weighted average value of the shares, also known as index shares, of each index security multiplied by the last selling price of each security and divided by the index divisor.
These scales or weights can limit the influence of the largest companies and balance the index among members. No company that is part of the Nasdaq-100 can weigh more than 24%.
How to trade NASDAQ with FBS?
You can trade contracts for difference (CFD) on NASDAQ. CFD reflects the movements of the NASDAQ. This allows you to trade in both directions. So, you can get profits from when the price goes down or goes up. Please see the contract specifications.
You can also use leverage. This means that with only a small amount of capital you can control a much larger financial position. Please always remember that leverage allows you to increase the value of your account. On the downside, you can lose most of your capital if the market goes against your trades.
What are the things that drive the price of the NASDAQ?
Considering that most of its index comes from the technology sector, NASDAQ prices are driven by earnings reports, scheduled meetings, and new product launches. Besides, US economic factors such as interest rates, monetary policy, and economic indicators in general greatly influence the index because of their impact on the level of investment of companies and consumer appetite for their products.