If you have been doing Forex trading for a while, you must be familiar with the NASDAQ 100 trade index. If you are not, then don’t worry, we will tell our readers how to trade NAS100.
This article will serve as your NAS100 trading guide.
How to trade NAS100 – What is NAS100
The NASDAQ 100 is a Forex trading index that tracks the performance of the 100 largest non-financial companies in the USA. It is a different thing than the Nasdaq composite index.
Nasdaq trading relies on crucial fundamental and technical analysis to estimate the prices before entering a trade. Traders make bets on the estimated costs of the stocks. They can use risk management tools like stop-loss.
Now we will jump into the conversation of how to trade NAS100.
Trading the NAS100
The trades in NAS100 mean estimation on the price movements of the index with spread bets like CFDs. Traders go long to speculate upward movements and short if they assume downward trends.
There is a margin factor involved in NAS100 trading. Hence, spread bets and CFDs are leveraged products. Thus, traders can get exposure to much more significant market values by committing to a position of the total value.
Importance of NAS100
NAS100 is a very diverse trading stock. It offers exposure to a lot of non-financial companies. Thus, the trades are not as volatile.
- It is a trendy index.
- Recently, there has been a growth in the following of this index
- It offers a large amount of liquidity
- It offers tighter spreads
NAS100 trading hours
Trading hours are of clinical importance when it comes to the Forex market. The NAS100 stocks can be traded on the CEM (Chicago Mercantile Exchange)
- Monday to Friday; 5 to 6 pm ET
- Friday to Sunday; 6 to 5 pm ET
EFTs that trade on NAS100 operates on;
- Pre-Market Trading Hours; from 4:00 am to 9:30 am. ET
- Market Hours; from 9:30 am to 4:00 pm ET
- After-Market Hours; from 4:00 pm to 8:00 pm ET
Trading in NAS100
There are two ways to make money In NAS100. One of them involves trading in NAS100. There are two ways to trade in NAS100;
Cash indices enable traders to speculate the spot price of the cash index of NAS100. The cash indices trading is popular with one-time traders who want tighter spreads and short-term trading.
Overnight funding charges are not included in the spreads. Thus, we suggest that you close your deals before the end of the day, or you might incur additional costs.
Index trades are similar to futures trading in the cryptocurrency market. Traders speculate on the future prices of NAS100. Overnight charges are included in the spreads. Hence, it offers long-term trading options.
Investing in NAS100
The goal of investing in NAS100 is to benefit from the upward movements in the price of NAS100. You are investing in the index, and if the index goes higher, you will earn a profit. This can also make you lose your money. If the index price lowers, you will be at a loss.
So now you know how to trade NAS100. If you want to take your trading to the next level, make sure to read the charts and follow the news in case a dip happens in the market.