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.
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.
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.
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.
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.
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.
|Company||Index Weighting (%)|
|Apple Inc. (APPL)||11.552|
|Microsoft Corp (MSFT)||11.092|
|Amazon.com 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|
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.
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.
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.
It’s free to open an account, and there is no obligation to fund or trade.Start trading