The Nasdaq 100 tracks the 100 largest non-financial companies listed on the Nasdaq, dominated by technology names. It is one of the most traded indices by retail and funded traders because it trends strongly and moves hundreds of points on busy days.
What drives it
- Earnings of the mega-cap tech companies, which carry a large weight in the index.
- Interest-rate expectations: growth stocks are sensitive to bond yields.
- US inflation and jobs data, and Federal Reserve decisions.
- Overall risk appetite in global markets.
When it moves
Pre-market news can move it early, but the main action starts at the US cash open, 09:30 New York time (13:30 UTC in summer, 14:30 UTC in winter), and the first 90 minutes are usually the most volatile. The last hour before the close can also be active.
Points and position size
Indices are measured in points. The value of one point per lot depends on the contract size in your platform. Before every trade, measure the stop distance in points, multiply by the value per point per lot, and size the position so the total equals 0.5–1% of your account.
Practical rules
- Trade the direction of the daily trend unless you have a strong reason not to.
- Wait for the opening range (first 15 minutes) to form before entering.
- Skip new trades around CPI, NFP and FOMC.
- Big tech earnings come out after the US close: avoid holding into them.