11 minute read
What is NAS100 Called on Exness? A Comprehensive Guide for Traders
from Exness
by Exness Blog
The world of online trading is vast and exciting, offering countless opportunities for traders to explore diverse financial instruments. One of the most popular assets among traders is the NAS100, a stock market index renowned for its volatility and exposure to some of the world’s most innovative companies. If you’re trading on Exness, a globally recognized forex and CFD broker, you might be wondering, “What is NAS100 called on Exness?” This article provides a detailed exploration of the NAS100 index, its significance in trading, how it’s represented on the Exness platform, and actionable strategies to trade it effectively.
💥 Trade with Exness now: Open An Account or Visit Brokers 🏆
Understanding the NAS100 Index
The NAS100, commonly referred to as the Nasdaq-100, is a stock market index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq stock exchange in the United States. These companies span various sectors, including technology, healthcare, consumer goods, and telecommunications, with a heavy emphasis on technology giants like Apple, Microsoft, Amazon, Alphabet (Google’s parent company), and Tesla.
As a market capitalization-weighted index, the NAS100 gives greater influence to companies with larger market values. For example, tech behemoths like Apple and Microsoft significantly impact the index’s movements due to their substantial market capitalizations. This structure makes the NAS100 a key benchmark for gauging the health of the U.S. technology and innovation sectors, often reflecting broader economic trends and investor sentiment toward growth-oriented stocks.
Why Trade NAS100?
The NAS100 is a favorite among traders for several reasons:
· Diversification: By trading the NAS100, you gain exposure to 100 leading companies across multiple sectors, reducing the risk associated with investing in individual stocks.
· High Volatility: The tech-heavy composition of the NAS100 results in greater price fluctuations compared to broader indices like the S&P 500, creating opportunities for short-term traders such as scalpers and day traders.
· Liquidity: As one of the most actively traded indices globally, the NAS100 offers high liquidity, ensuring smooth trade execution and minimal slippage, especially during high-impact news events or earnings seasons.
· Exposure to Innovation: The NAS100 includes companies at the forefront of technological advancements, such as Nvidia, Meta, and Tesla, making it an attractive option for traders seeking to capitalize on growth sectors.
What is NAS100 Called on Exness?
On the Exness platform, the NAS100 is not listed under its common name, “Nasdaq-100” or “NAS100.” Instead, it is represented by the trading symbol USTEC. This symbol is used across Exness’s trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and the Exness Trader app, to identify the Nasdaq-100 index as a tradable instrument. The term “USTEC” stands for “US Tech 100,” reflecting the index’s focus on U.S. technology companies.
Exness offers the NAS100 as a Contract for Difference (CFD), allowing traders to speculate on the index’s price movements without owning the underlying assets. This CFD structure enables traders to go long (buy) or short (sell) based on market conditions, providing flexibility to profit in both rising and falling markets.
Why the Symbol USTEC?
The use of “USTEC” as the trading symbol for NAS100 on Exness aligns with industry conventions, where indices are often assigned unique ticker symbols for easy identification. The “US” in USTEC emphasizes the index’s American origin, while “TEC” highlights its technology-heavy composition. This naming helps traders quickly locate the instrument within Exness’s extensive range of financial products, which includes forex pairs, commodities, cryptocurrencies, stocks, and other indices.
💥 Trade with Exness now: Open An Account or Visit Brokers 🏆
Benefits of Trading NAS100 (USTEC) on Exness
Exness is a well-established broker, founded in 2008, known for its transparency, advanced technology, and user-friendly platforms. Trading the NAS100 (USTEC) on Exness offers several advantages that cater to both novice and experienced traders:
1. Competitive Spreads
Exness is renowned for offering tight spreads, which reduce trading costs, especially for high-frequency traders. For the USTEC, spreads vary depending on the account type. For instance:
· Standard Account: Offers commission-free trading with slightly wider spreads, ideal for beginners.
· Pro Account: Provides tighter spreads with no commission, suitable for experienced traders.
· Raw Spread Account: Features very low spreads with a small commission per lot.
· Zero Account: Offers near-zero spreads on major instruments with a commission, perfect for cost-conscious traders.
According to recent data, the average spread for USTEC on the Standard account is around 41.1 pips, while professional accounts like Raw Spread and Zero can offer spreads as low as 0.06 pips with commissions. These competitive conditions make Exness a cost-effective choice for NAS100 trading.
2. Flexible Leverage
Exness provides flexible leverage options, allowing traders to amplify their positions with minimal capital. For NAS100, leverage can go up to 1:200, enabling traders to control larger positions than their account balance would typically allow. However, high leverage also increases risk, so it’s crucial to use it judiciously and implement robust risk management strategies.
3. Advanced Trading Platforms
Exness supports popular platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and the Exness Trader app. These platforms offer advanced charting tools, technical indicators, and automated trading capabilities, making it easier to analyze and trade the NAS100 effectively.
4. High Liquidity and Fast Execution
The NAS100’s global popularity ensures high liquidity, and Exness’s fast order execution minimizes slippage, allowing traders to capitalize on rapid price movements during volatile market conditions, such as earnings reports or economic data releases.
5. Risk Management Tools
Exness provides tools like stop-loss and take-profit orders to help traders manage risk. These features allow you to set predetermined exit points to limit losses or lock in profits, which is particularly important given the NAS100’s volatility.
6. No Overnight Fees
Exness offers swap-free accounts for certain regions, meaning traders can hold NAS100 positions overnight without incurring additional fees. This is a significant advantage for swing traders or those holding positions for extended periods.
7. Regulatory Compliance
Exness is regulated by reputable authorities, including the Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), and Financial Sector Conduct Authority (FSCA). This ensures a secure and transparent trading environment, giving traders confidence in the platform’s reliability.
How to Trade NAS100 (USTEC) on Exness: A Step-by-Step Guide
Getting started with NAS100 trading on Exness is straightforward. Follow these steps to begin:
Step 1: Create an Exness Account
· Visit Exness: Open An Account or Visit Brokers; click “Open Account.”
· Provide your email, create a password, and select your country.
· Complete the verification process by uploading a government-issued ID and proof of address to comply with international regulations.
Step 2: Choose an Account Type
Exness offers several account types to suit different trading styles:
· Standard Account: Ideal for beginners with low spreads and no commissions.
· Pro Account: Designed for experienced traders with tighter spreads and faster execution.
· Raw Spread Account: Offers low spreads with a small commission.
· Zero Account: Provides near-zero spreads with a commission, suitable for high-frequency traders.
Review the features of each account in your Exness Personal Area to select the one that aligns with your goals.
Step 3: Fund Your Account
· Log in to your Exness Personal Area.
· Choose a payment method (e.g., bank transfer, credit/debit card, or electronic wallets like Skrill or Neteller).
· Deposit funds, with a minimum deposit as low as $10 for some account types.
Step 4: Download a Trading Platform
· Download MetaTrader 4 (MT4), MetaTrader 5 (MT5), or the Exness Trader app from the Exness website.
· Install the platform on your computer or mobile device and log in with your account credentials.
Step 5: Locate NAS100 (USTEC)
· Open the trading platform and go to the Market Watch section.
· Right-click in the Market Watch window, select “Symbols,” and search for “USTEC” or “NAS100.”
· Click “Show” to add it to your list of tradable instruments.
Step 6: Analyze and Execute Trades
· Open the USTEC chart by double-clicking its name in the Market Watch list.
· Use technical analysis tools (e.g., moving averages, RSI, Fibonacci retracement) and fundamental data (e.g., earnings reports, economic news) to assess price movements.
· Click “New Order,” select your lot size, and choose whether to buy or sell based on your analysis.
· Set stop-loss and take-profit orders to manage risk.
Step 7: Monitor and Manage Your Trades
· Regularly monitor your USTEC positions to track performance.
· Adjust stop-loss or take-profit levels as needed to secure profits or limit losses.
· Stay informed about market news, as the NAS100 is highly sensitive to corporate earnings, technological advancements, and macroeconomic events.
Effective Strategies for Trading NAS100 on Exness
Trading the NAS100 requires a well-thought-out strategy to navigate its volatility and capitalize on opportunities. Here are some proven strategies:
1. Trend Following
Identify the prevailing trend (uptrend or downtrend) using technical indicators like moving averages or the Average Directional Index (ADX). Enter trades in the direction of the trend and exit when the trend shows signs of reversal. This strategy works well during sustained market movements driven by strong earnings reports or positive economic data.
2. Range Trading
Use support and resistance levels to identify a trading range. Buy near support levels and sell near resistance levels, capitalizing on price oscillations within the range. This strategy is effective during periods of consolidation when the NAS100 moves sideways.
3. Breakout Trading
Monitor the NAS100 for periods of consolidation, where price movements are minimal. Enter trades when the price breaks above resistance or below support, signaling a potential breakout. Use stop-loss orders to protect against false breakouts, which are common in volatile markets.
4. News-Based Trading
The NAS100 is highly reactive to macroeconomic events, such as Federal Reserve policy changes, corporate earnings reports, and geopolitical developments. Stay updated on relevant news and use it to anticipate price movements. For example, strong earnings from tech giants like Apple or Microsoft can drive the NAS100 higher, while disappointing results may trigger declines.
5. Risk Management
Given the NAS100’s volatility, robust risk management is essential:
· Set Stop-Loss Orders: Limit potential losses by setting exit points for unfavorable price movements.
· Use Proper Position Sizing: Avoid overleveraging by trading smaller lot sizes, especially as a beginner.
· Diversify Your Portfolio: Trade other instruments (e.g., forex pairs, commodities) alongside NAS100 to spread risk.
· Monitor Economic Events: Stay informed about key events that could impact the NAS100, such as U.S. economic data releases or tech sector news.
Risks and Considerations When Trading NAS100
While the NAS100 offers significant opportunities, it also comes with risks due to its volatility and sensitivity to market conditions. Key considerations include:
· High Volatility: The tech-heavy nature of the NAS100 can lead to sharp price swings, especially during earnings seasons or economic uncertainty.
· Leverage Risks: High leverage can amplify both profits and losses, so use it cautiously.
· Economic Sensitivity: The NAS100 is influenced by macroeconomic factors, such as interest rate changes, inflation data, and geopolitical events, which can create unpredictable movements.
· Overtrading: Avoid chasing the market or entering trades without proper analysis, as this can lead to emotional decisions and losses.
To mitigate these risks, always conduct thorough analysis, use risk management tools, and stay disciplined in your trading approach.
Comparing NAS100 with Other Indices on Exness
Exness offers a variety of indices, including the S&P 500 (US500) and Dow Jones (US30), alongside the NAS100 (USTEC). Here’s how they compare:
· NAS100 (USTEC): Tech-focused, highly volatile, and ideal for traders seeking exposure to innovation-driven sectors.
· S&P 500 (US500): Represents 500 large U.S. companies across multiple sectors, offering broader diversification and lower volatility.
· Dow Jones (US30): Tracks 30 major U.S. companies, with a focus on industrial and blue-chip stocks, providing stability but less tech exposure.
The NAS100’s emphasis on high-growth tech companies makes it a unique choice for traders seeking dynamic opportunities, while the S&P 500 and Dow Jones offer more balanced exposure to the U.S. economy.
Why Choose Exness for NAS100 Trading?
Exness stands out as a top choice for trading NAS100 due to its competitive trading conditions, user-friendly platforms, and commitment to transparency. With over 800,000 traders and 64,000 partners worldwide, Exness has built a strong reputation for reliability and innovation. Its regulated environment, advanced tools, and flexible account options make it suitable for traders of all levels, from beginners to professionals.
Conclusion
The NAS100, known as USTEC on the Exness platform, is a powerful trading instrument that offers exposure to 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Its tech-heavy composition, high volatility, and liquidity make it an attractive choice for traders seeking to capitalize on market movements. Exness enhances the trading experience with tight spreads, flexible leverage, advanced platforms, and robust risk management tools, making it an ideal broker for NAS100 trading.
Whether you’re a novice or an experienced trader, understanding how to trade NAS100 on Exness can unlock significant opportunities. By following the steps outlined in this guide, leveraging effective strategies, and practicing sound risk management, you can navigate the dynamic world of NAS100 trading with confidence. Start your journey today by opening an Exness account and exploring the potential of the USTEC!
💥 Note: To enjoy the benefits of the partner code, such as trading fee rebates, you need to register with Exness through this link: Open An Account or Visit Brokers 🏆
Read more:
