The NASDAQ-100 index, along with the NASDAQ Financial Index, debuted in 1985. The NASDAQ exchange wanted to compete with the much bigger and older NYSE and Standard & Poor’s S&P500 index. These product innovations were the first move in that direction, enabling the formation of a suite of futures and financial derivatives, further fueling exchange and index growth.
Nasdaq, which stands for ‘National Association of Securities Dealers Automatic Quotations,’ is the world’s largest stock exchange.
With rapid technological advancements in the decades ahead and an associated blast of tech stocks through the .com bubble and beyond, the index has come on leaps and bounds, returning a compound annual growth rate of 13.6 percent per year since founding, without even accounting for dividends.
NAS100 CFD BROKER
Some quick-fire reviews of the best trading for NAS100 CFD brokers:
IG
IG is the world’s largest spread betting and CFD broker, having created the concept of financial spread betting. They have one of the most diverse markets and are listed on the LSE.
Markets for Saxo
Saxo Markets offers more affluent and experienced traders futures, options, and expert trading tools.
ETX Capital
ETX Capital, a spread betting broker, has a long history of being a broker powerhouse. It was founded in 1965, is a member of the LSE, and has constantly earned a slew of industry honors throughout the years.
Difference between the NAS100 and the NASDAQ
The NAS 100 is a well-known stock market index that the NASDAQ launched on January 31, 1985. The benchmark was established to promote the NASDAQ and provide a non-financial stock index for retailers to trade.
The NASDAQ 100 index consists of 102 equity securities from the top 100 non-financial firms on the NASDAQ stock exchange. Any company engaging in financial services is not included in the top 100 stocks. The equities are chosen based on their market size, and the stocks are rebalanced in December of each year.
In 1985, the index was introduced with a base price of 250, which was eventually reduced to 125 in 1993. Aside from negative tendencies in 2001 and 2008, a volatile index has constantly grown. On February 16, 2021, the NAS 100 set an all-time high of 13,879.77. (as of February 22, 2021). Despite the uncertain market conditions caused by Covid-19 and the lockout, the index increased by 47.58 percent in the calendar year 2020. The NAS 100 is more volatile than any other large-cap index in the United States. Because of the high volume of traders attracted by the rapid changes, liquidity is not a problem when trading on the NAS 100.
Conclusion
Trading on the NAS100 Index provides some security because the companies are well-known and have large client bases. However, all trading and investments include some level of risk. For example, American Airlines was a constant on the NAS100, but the events of 2020 have forced the aviation industry to implode. Despite the index’s success, the stock market is volatile, uncertain, and dependent on many unpredictable variables.