Yes, you can trade E-mini Nasdaq 100 futures and also Micro E-mini Nasdaq 100 index futures with NinjaTrader. NinjaTrader is an industry-leading futures broker offering low commissions, low margin rates, and safety of your account funds. With NinjaTrader, you can trade dozens of the most actively traded futures markets in the world.
The Nasdaq 100 index is a capitalization weighted index, where each of the 100 components are weighted according to their total market capitalization. The larger the capitalization, the larger the weight in the index. For example, if the total market capitalization of all 100 stocks is $100 billion, and just one stock has a market capitalization of $10 billion, then that one stock will contribute 10% to the price movement of the index.
These and other futures are traded on a well-regulated exchange where orders are matched and cleared on a fair and level playing field with full price and order transparency. Traders can place buy and sell orders through their broker to enter or exit a position virtually 24 hours a day.
The Nasdaq 100 index is an important global economic indicator. Business activity from these 100 largely technology stocks can have a significant influence on the overall health of the US and world economies.
The E-mini Nasdaq 100 futures offer traders direct market access for speculating on the price movement of the E-mini Nasdaq 100 stock index. This index is popular among futures traders as it is heavily weighted in technology stocks. It provides good liquidity virtually 24 hours a day, lower trading capital requirements, and like all futures, tax benefits over stock trading. Futures can also offer traders more trading opportunities and flexibility over individual stocks, options, and ETFs with their many limitations.
Like every futures contract, the primary risk here is that the price of the E-mini Nasdaq 100 futures or Micro E-mini Nasdaq 100 index futures will go against the trader’s position. Economic news, earnings reports, changes in interest rates, and investor sentiment can all have a significant effect on the price of futures.
E-mini Nasdaq 100 futures trading is an agreement between a buyer and seller at a specified price in a contract that will expire on a specific date. Traders can enter and exit positions any time prior to the expiration date in financially settled futures like the E-mini Nasdaq 100 contract.
The E-mini Nasdaq 100 futures contract is a tradable Instrument representing 100 of the largest stocks non-financial stocks trading on the Nasdaq stock exchange. A one point move in the standard contract equates to $20 of profit or loss, and a one point move in the micro 1/10th size contract equates to $2 of profit or loss. Each futures contract has a unique set of contract specifications that are set by the futures exchange.
These futures contracts are traded on the Chicago Mercantile Exchange (CME)(Globex System). Live trading during the Globex session is available from Sunday at 6:00 PM Eastern Time until Friday 5:00 PM Eastern Time, giving traders the ability to capture unique trading opportunities while the stock market is closed.
The standard value of a 1-point move in a standard contract is $20, with micro contracts worth $2 for a similar move.
The Nasdaq is the most active stock exchange in the United States by volume, with thousands of companies listed and a market cap valued in the trillions of dollars. E-mini Nasdaq 100 futures are based on a modified and weighted index of the 100 largest and most active domestic stocks for non-financial companies. Primarily, the Nasdaq 100 is comprised of technology, telecom, and biotechnology stocks. E-mini futures give traders the opportunity to participate in the market without necessarily needing to build a portfolio of individual stocks.
Participating in the E-mini Nasdaq market means paying close attention to various technical indicators such as moving averages, relative strength index, moving average convergence/divergence, chart patterns, and more. It’s also important to pay attention to other factors such as the gross domestic product, U.S. employment rates, and the strength of the U.S. dollar. Another thing to keep in mind is the impact of economic and political factors around the world, as these can have an effect on investors’ confidence and drive the price of these futures contracts higher or lower. These can include political instability, trade policy changes, international conflicts, and disruptions in global energy supplies. Savvy investors would do well to keep an eye on these influences while investing in E-mini Nasdaq 100 futures.