There are two ways for you to get the experience of the NASDAQ 100 or US Tech 100: trading or investing. You are able to trade on the price of the NASDAQ 100 with spread bets or CFDs, which are financial derivatives that you'll trade with leverage. For investing, you will get the experience of the NASDAQ 100 through buying into ETFs that track the index's price, or shares of NASDAQ 100 companies.
Trading the NASDAQ 100
Trading the NASDAQ 100 means that you will be speculating on the upward or downward price movements of the index with spread bets or CFDs. You'd go long to speculate on upward movements, and you'd go short to speculate on downward movements.
Spread bets and CFDs are leveraged products, meaning you'll manage to get much bigger market exposure while only being forced to commit a proportion of the position's full value upfront – referred to as margin.
But remember that while leverage can boost your profits, it may also boost your potential losses. That's because your total profit or loss on a leveraged trade is set by the full size of the career, rather than the margin necessary to open it.
Below, you'll view a screengrab from our trading platform of the NASDAQ 100's price performance from June 2019 to June 2020.
Approaches to trade the NASDAQ 100
Cash indices
Cash indices enable you to speculate immediately the price (current market price) of the NASDAQ 100. They are favored by short-term traders because they provide tight spreads – starting just one time whenever you trade the NASDAQ 100 index with us.
Because overnight funding charges aren't a part of cash indices spreads, you might want to close your positions at the conclusion of every trading day as opposed to incurring this additional cost.
Index futures
Index futures enable you to speculate on the futures price of the NASDAQ 100. Trading index futures is favored by long-term traders as the overnight funding charge is within the spread. While what this means is the spreads are slightly wider, you won't incur this additional cost at the conclusion of every trading day.
Our spreads for NASDAQ 100 index futures start at three points, but keep in mind that and also this includes the overnight funding charge – so you won't incur this additional cost on top.
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