What is the NASDAQ 100 index?
NASDAQ 100 index (NDX), or the US100, is an index composed of the largest 100 non-financial companies quoted on the NASDAQ stock market according to their market capitalisation. It was established in 1985 as a weighted market capitalisation index with constituents coming from different industries. The tech industry is well-represented by this index, with companies listed including Amazon, Apple, Microsoft and Alphabet. There is also a balanced inclusion of large-cap companies from other sectors; such as consumer goods, consumer services, healthcare, industrials and telecommunications, providing investors with a diverse range of investments within the index.
NASDAQ 100 index movements in the past
Over the past decade, the Nasdaq Composite has outperformed other stock market indexes. Its cumulative return for the period between the end of the fiscal year 2007 and 2020 was 608%. While its heavy technological reliance is responsible for much of its sizable returns, it’s also led to similarly considerable drops. The 2008 recession and the bursting of the dot-com bubble had caused the Nasdaq Composite to plunge as technology companies closed down. But over time, it recovered and surpassed other indexes as growth-focused tech companies thrived over the past two decades.
How to trade NASDAQ 100
NASDAQ 100 trading can be executed through different types of instruments and via a variety of financial companies such as brokers and investment funds. You can trade NASDAQ 100 with futures and options, investments funds or tokenised assets.
While the derivative instruments such as futures and options might provide certain benefits, they do come with some significant limitations. For instance, even though they are commonly traded in larger amounts, you will not be able to partly close your position before delivery date. Accordingly, your liquidity may be put at risk and also the futures may become worthless depending on the price movements of the underlying assets until the expiration period. So, futures are generally used by professional traders and investors who want to hedge their positions in the market.
Options can also be a practical trading instrument, but you may pay higher spread when you trade NASDAQ 100. Besides, don’t forget about the commission to the seller for each option irrespective of whether we decide to exercise the option or not. Trading costs issues can be found with mutual funds and Exchange-traded funds and you need to pay attention to the expense ratio. Additionally, you should be able to understand the operations behind different types of funds before you make your decision to trade.
Alternatively, you can trade NASDAQ 100 with the tokenised assets available at the Dzengi.com leveraged trading platform. Dzengi.com creates the tokens with blockchain technology which enables enhanced recording of data and transactions.
Additionally, by offering tokenised assets, the trading platforms reduce the intermediary costs. When you trade the tokenised nasdaq 100 index, you can speculate on the price movements of a tradeable asset without owning the asset itself. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price, which can be carefully monitorred in real time on the nasdaq 100 live chart.
Tokenised US100 trading guide
Trading tokenised US100 is easy and, in many ways, the process is similar to trading other types of securities. There are a few basic steps:
Step 1: visit the Dzengi.com trading platform and open an account by completing the two-factor authentication security process.
Step 2: choose how much you want to deposit into your account. It is possible to trade with either crypto or with fiat currency.
Step 3: calculate the value of the position you want to open, or you can calculate the size of the position based on your available capital and the percentage margin. For example, a position of $10,000 would require that you have $100 of available capital when you trade tokenised US100 1 : 100 (1%).
Step 4: positions are opened using the same approach in place at other investment platforms - i.e. taking a long position if a US100 price increase is anticipated, or shorting if there is an expected decline in the US100 price value. The handy US100 price chart could be used to monitor price movement.
Step 5: Dzengi.com links the open the trading positions between its clients and all unpaired buy or sell orders that are hedged with Capital.com, LMAX Digital or, if needed, with Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
Step 6: you may also consider placing a take profits order or initiate a stop loss order.
Trade tokenised US100 with Dzengi.com
Tokenised US100 trading at Dzengi.com tokenised assets exchange has a number of advantages. Tokenised assets are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
Tight spreads
Trade tokenised US100 with a tight market spread, and benefit from maker rebates and competitive taker fees.
Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders and mitigate any losses with negative balance protection.
Instant order execution
Dzengi.com has a scalable and low latency order management system, which can execute 50 million trades per second. It is a high-growth, crypto platform seamlessly linking the booming world of cryptocurrencies with the world of traditional financial assets. Powered by simple, slick and intuitive technology, the platform is designed to enable investors to securely buy, trade and invest in popular cryptocurrencies using both crypto and fiat currencies.
Safe regulation
Depending on the regulatory perimeters in different countries Dzengi.com offers different products around digital assets. To help investors trade with confidence, the platform is fitted with robust risk management controls, transparent pricing and extensive financial education content.
Dzengi Com US LLC is registered with the Financial Crimes Enforcement Network as a Money Services Business. Its parent entity, Dzengi Com Limited is licensed by the Gibraltar Financial Services Commission as a Distributed Ledger Technology (DLT) Provider. The company has offices located in the US, Belarus, Gibraltar and Ukraine.
