The Nasdaq 100 (often traded as the index future "NQ" or via ETFs) tracks 100 of the largest non-financial companies listed on the Nasdaq — heavily weighted toward technology. It's a favourite of active traders for one reason: it moves.
What the Nasdaq 100 is
It's a tech-heavy index dominated by mega-cap names. Because those few giant companies carry huge weight, the index can swing on a handful of earnings reports or a shift in rate expectations.
What drives it
- Interest rates — growth and tech stocks are especially sensitive to rate expectations. Hawkish surprises hit the Nasdaq harder than the broader market.
- Mega-cap earnings — results from the largest constituents can move the whole index.
- Risk sentiment — the Nasdaq is a high-beta, risk-on index; it leads in rallies and falls faster in selloffs.
Character
The Nasdaq 100 is more volatile than broad indices. Trends can be strong and persistent, but reversals are sharp. It's most active during the US cash session, with extra movement around the US open and economic releases.
A disciplined routine
- Trade with the higher-timeframe trend; the Nasdaq trends hard, so fighting it is costly.
- Use clear support and resistance and prior-day levels for entries and stops.
- Size for the volatility — a wider stop means a smaller position. Keep risk fixed with the position-size calculator, and be flat or cautious into major economic data.
The Nasdaq pays trend-followers and punishes those who pick tops. Respect the direction.
Education only — not financial advice.