NASDAQ 100 Trading

Trade the NASDAQ 100 stock index with PrimeXBT’s award-winning platform. Benefit from the low fees and advanced trading features

Trade NASDAQ 100

The NASDAQ 100 Index is a basket of the 100 largest, most actively traded, US companies listed on the NASDAQ stock exchange. The index includes companies from various industries except for the financial industry, like commercial and investment banks. These non-financial sectors include retail, biotechnology, industrial, technology, health care, and others.

The NASDAQ 100 has shown its potential as a top performer over the past few years with its bias towards industry-leading technology companies and often out performs other well known US stock indices.

PrimeXBT allows traders to get the most out of trading the NASDAQ 100 index with advanced trading tools which allow traders to profit from the both growing and falling markets.

Why trade NASDAQ 100 with PrimeXBT

  • Easy to startStart trading in minutes with quick and easy registration procedure, and low minimum deposit
  • Low trading feesSave on fees! Benefit from PrimeXBT’s low commission rates and tight spreads while trading all available assets
  • Secure tradingEnjoy PrimeXBT’s security features that will ensure your personal data and funds are always safe.
  • Best-in-class trading platformPrimeXBT’s award-winning software offers traders a variety of professional trading tools. Access cryptocurrencies, stock indices, commodities, and forex from a single account!
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How does NASDAQ 100 margin trading work?

Leverage trading offers great potential profit opportunities while trading NASDAQ 100 but also carries certain risks. When you want to open a NASDAQ 100 trade, you don’t have to deposit the full amount of position value, instead you only use margin as insurance while PrimeXBT will provide you the rest.

If your trade on the NASDAQ 100 is successful under the margin, you will be able to earn additional profit too. However, the risk is that if the trade is unsuccessful the losses can be magnified too.

The benefits of NASDAQ 100 trading with leverage

  • Magnified profitsMargin trading is known for its ability to make larger trades compared to deposited amounts. Margin trading is one of the most effective ways to increase potential returns
  • DiversificationMargin trading means there is more available traders' capital left on the account which can be used to open new positions. Diversification allows to reduce market risk.
  • Gaining from the market fall.Margin trading also allows traders to open long and short positions in order to profit from both growing and falling market.

NASDAQ 100 leverage trading example

For example, If a trader takes a long position of $2,000 on the NASDAQ 100 and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.

Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.

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How to start trading NASDAQ 100

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What is NASDAQ 100?

The NASDAQ 100 is an index that traces the 100 largest companies on the NASDAQ exchange, and for inclusion, securities must be solely listed on the NASDAQ. NASDAQ stands for the “National Association of Securities Dealers Automated Quotations”.

The NASDAQ 100 can be composed of any companies except for those from the financial industry, such as commercial banks. Two considerations for addition to the NASDAQ 100 are market capitalization and liquidity.

NASDAQ 100 history

The NASDAQ 100 was launched on January 31st, 1985, alongside a second index called the NASDAQ Financial 100, which was composed of companies from financial sub-sectors such as banking, mortgages, insurance and brokerages. The NASDAQ 100 itself was to be the non-financial index created by the NASDAQ stock market in response to the dominance of the New York Stock Exchange (NYSE) at the time.

The first occurrence of foreign companies being included in the index was in 1998, and while today foreign and domestic companies both have to meet the same standards for inclusion into the NASDAQ 100, from 1998 to 2002 foreign companies had to meet significantly higher standards than domestic companies.

NASDAQ 100 Index composition

The NASDAQ 100 is composed of the largest non-financial companies on the NASDAQ, and includes those from sectors such as media, transportation, biotech, retail, industrial, technology and health care.

The NASDAQ 100 is a combination of common stocks, tracking stocks, ADRs and ordinary shares. A large proportion of the index comes from the technology sector, which currently represents more than 50% of all index components in the NASDAQ 100.

Top 10 companies represented by NASDAQ 100 and their Index weighting

CompanyIndex Weighting (%)
Apple Inc. (APPL)11.552
Microsoft Corp (MSFT)11.092 Inc (AMZN)9.306
Facebook Inc (FB)4.717
Alphabet Inc (GOOG)4.633
Alphabet Inc (GOOGL)4.071
Intel Corp (INTC)2.724
Comcast Corp (CMCSA)2.454
Cisco Systems Inc (CSCO)2.406
PepsiCo Inc (PEP)2.259
*information as of May 2020

Why is the NASDAQ 100 Index important to traders?

The NASDAQ is one of the largest and most well-known stock exchanges in the world, and traders flock to the NASDAQ 100 because historically in bull run years it has consistently outperformed other indexes such as the Dow Jones and the S&P 500.

The NASDAQ tracks some of the largest non-financial companies in the world, with the US economy being the largest on the planet, and the NASDAQ representing one of the global hubs of finance and commerce. The NASDAQ maps the progress of the US marketplace, and acts as an indicator to the state of the world’s economy.

How is NASDAQ 100 calculated?

The NASDAQ 100 is a market capitalization-weighted index. What this means is that the index value is calculated by multiplying each of the securities’ last sale price by the total value of their outstanding shares, and then weighting that in relation to each of the other securities in the index.

Larger companies by overall market value hold a larger weighting within the NASDAQ 100 index. The total amount is then divided using a divisor which serves to make the reporting and analysis of the index more manageable.

Why trading NASDAQ 100 makes sense

The NASDAQ 100 is a stock index rather than a single company stock which means that the growth of the index is pushed along by a hundred companies. For traders, this means the risk is mitigated as one company’s poor performance won’t impact the index too much, and when there is a growth in macroeconomic factors, most of the top companies will benefit together.

PrimeXBT’s ultra-fast order execution and its stable, reliable trading engine ensures the tightest spreads and best trading experience. The trading platform is packed with advanced trading tools, such as long and short positions, advanced order types such as stop loss and take profit orders.

The platform is also safe, secure, and offers 24/7 customer support service via a live chat, community channels, and much more.

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