Everything you need to know about NASDAQ 100
The NASDAQ 100 Index is an American index that is considered one of the most important and most popular indices in the global and American stock markets in particular, and is considered the main index of the technology market and companies in the United States.
The Nasdaq index includes about 100 companies in some different fields such as technology, communications, electronics and social media companies, such as Intel, Microsoft, Google, Yahoo, eBay, Amazon, Facebook and other major companies in the world.
Trading in the American Nasdaq index began with a value of 100 points in 1985, at which time the index began to work, and this indicator is the first indicator that deals with the electronic screen in the world. Dollar value and stock size in USA.
The American index, which is considered one of the most important and highest indices in the global stock markets, achieved its highest value during 1999 by about 5,000 points, but it fell sharply during the dotcom crisis, which affected the technology sector significantly, bringing the index to 1,000 points.
With the advent of 2007 and despite the existence of the global financial crisis, the American Nasdaq index achieved a rise in the markets to record about 2,700 points during that period, but it declined again during 2008 in light of the mortgage crisis that negatively affected the United States and the world as well. Then it reaches 1500 points.
How to trade in the American NASDAQ Index?
The Nasdaq index is symbolized by the symbol NDX 100 in its trading, and its value is in US dollars.
It is possible to get benefit from the fluctuations that occur in the shares of major companies listed on the Nasdaq index such as Apple, Amazon, Google and others, through the financial instruments within the index that provide you with trading such as exchange traded funds, futures, options contracts and contracts for difference.
With regard to futures contracts in the American Nasdaq Index, there are two types of them, first, the futures contracts called E-Mini Nasdaq 100, and the second type called Nasdaq 100, the first type is the most used by traders in the stock markets, thanks to its high trading volume and cost. The low price that many traders are attracted to in the stock markets compared to other types.
Moreover, it may be preferred by traders in the stock markets due to the high liquidity it offers, which ranges between 200,000 to 600,000 future contracts per day, which makes it the most important for traders and investors in the market.
E-Mini Nasdaq 100 futures are traded from 5pm on Sunday to 4:15pm on Friday US time weekly, and the initial trading margin is $3,500.
As for the second type of futures contract, which is the Nasdaq 100, it is traded from five o’clock in the evening on Sunday every week until four in the evening on Friday, US time, and the value of the initial margin for trading contracts is about 17,500 dollars.
On the other hand, the process of trading futures contracts in the Nasdaq index on the Chicago Stock Exchange takes place within 24 hours a day.
In order for stocks or securities to be listed on the Nasdaq index electronic exchange, the company must approve the companies’ requests in terms of financial liquidity and laws, and they must also be registered by the SEC, in addition to the presence of at least 3 market makers she has.