Trading Nasdaq 100 Index (US100)

The Nasdaq Stock Exchange, founded in 1971, was the world's first electronic stock market, revolutionizing the way stocks were traded by providing a computerized system that replaced traditional floor trading

The Nasdaq 100 Index, launched in 1985, includes 100 of the largest non-financial companies listed on the Nasdaq. The Index has become a key benchmark for the performance of the tech sector, attracting investors and traders worldwide.

Trading the Nasdaq 100 as a CFD allows you to speculate on the price movements of the index without investing in it as a mutual fund. You can go long (buy) if you expect the index to rise or go short (sell) if you anticipate a decline. This is done through a broker like zForex, which offers MT5 platform, super low spreads, fast execution, and advanced trading tools.

Some of the most well-known companies in the Nasdaq 100 Index include Apple, Microsoft, Amazon, Alphabet (Google), Facebook (Meta), Intel, and Tesla.

Following the Nasdaq is required for staying updated on the performance of major tech and biotech companies, which can provide insights into broader market trends. The index is a leading indicator of the technology sector's health and is often a precursor to economic changes in the innovation-driven economy.

The Nasdaq 100 Index saw a significant drop during the dot-com bubble burst in 2000-2002, where the index fell by nearly 80% due to the collapse of overvalued tech stocks. Another notable event was the 2020 surge, where the index gained over 40% despite the global pandemic. This rise was driven by increased reliance on technology and e-commerce companies like Amazon and Netflix as people adapted to remote work and online shopping during lockdowns.