It belongs to many relatively new exchanges since it opened in 1971. NASDAQ began its activities as a public organization, and now it is the primary virtual exchange platform for large technology companies. The stock trades in shares of companies such as Intel, Microsoft, CISCO, Apple.
The exchange aims to become the trading domain of the new economic system. Therefore, the NASDAQ list includes modern companies that focus on technology.
The name of the exchange stands for automated quotes of the National Association of Securities Dealers. This suggests that the NASDAQ stock exchange is a dealer market where the purchase and sale of shares are carried out through a dealer who creates a demand for securities.
The main advantage for traders owned by the NASDAQ exchange is the volatility of its shares in the market. This is because the cost of registration for companies on the NASDAQ exchange is meager, so there are more new companies there, whose shares are volatile.
Many traders prefer to trade indices because they minimize the overall risk; that is, such trading is relatively safe. For example, the dangers of trading indices are always lower than the risks of investing in individual stocks. Instability of indices is always associated with geopolitical events, economic forecasts, and social disasters.
Indices are a great way to gain access to large-scale markets, and it is not necessary to analyze the results of companies that are included in one or another index. In general, well-known stock market indices often provide traders with a high degree of liquidity, long hours of trading, and tight spreads.
NASDAQ 100 is an index whose overall value is represented by the shares of 100 large and actively traded American companies. Companies that are included in the index relate to the following sectors: technology, retail, industry, healthcare.
The index calculation method is built according to a formula that allows you to balance the index concerning all companies and limit the influence of large companies.
Trading on the NASDAQ 100 Index is based on fundamental or technical analysis to determine the price levels at which you can enter a trade. A trader makes a bet at which the price will go, and then places a stop-loss and take-profit to manage risk.
You should be very patient before entering the transaction. Before you trade, you need to have an idea of the risks and realistic expectations of what you want to get in the end.
We advise you to limit the exposure to 5% on all open transactions. First, determine the ratio of risk to profit and then enter the deal. Do not forget that it is essential to have a favorable rate.
Please be careful! Avoid entering a transaction before the release of important economic news. Events related to the economy lead to sharp jumps in volatility, it is better to wait until the markets calm down before starting to trade. It will not be superfluous to preliminarily analyze all the indicators and be confident in your actions before trading.