What is the future of Nasdaq?
Nasdaq futures are financial agreements that allow investors to trade at the future price of the Nasdaq Composite Index. The Nasdaq Composite Index is the market weight index of 100 large non-financial companies.
Nasdaq Futures Chicago Mercantile Exchange ( CE ) Collision Symbol NQ ⁇ Under trade۔ To provide the Nasdaq Composite Index on the third Friday of the month of the contract.
How Nasdaq Futures Work?
When you buy the Nasdaq Futures Agreement, you basically agree to buy the Nose Deck Composite Index at a certain price on a particular date. The value of the Nasdaq Futures Agreement is determined by the current value of the Nasdaq Comprehensive Index, Also, the expected interest rate and profit is between the date of now and the date of delivery.
If you think the Nasdaq Composite Index is about to increase the price, you can buy the Nasdaq Futures Agreement. If the value of the index increases, you can sell the contract for profit.
If you think the Nasdaq Composite Index is about to fall into the price, you can sell the Nasdaq Futures Agreement. If the index goes to the price, you can buy the contract back for profit.
Why trade Nasdaq futures?
There are many reasons why investors want to trade Nasdaq futures. One reason is to avoid danger. If you own a stock portfolio listed on the Nasdaq Stock Exchange ، You can buy Nasdaq Futures to save yourself from the reduction in the value of your portfolio.
Another reason for the Nasdaq Futures trade is to speculate about the future direction of the Nasdaq Composite Index. If you believe the index is going to increase the price, you can buy profits from the Nasdaq Futures Agreement and the price increase.
Finally, Nasdaq futures can be used to mediate between different markets. For example, if the value of the Nasdaq futures is less than the value of the Nasdaq Composite Index ، You can buy Nasdaq Futures and sell the Nasdaq Composite Index to lock profits.
Trading Nasdaq Futures Risks
Like any investment, there are risks associated with Nasdaq futures trading. The biggest danger is that the value of the Nasdaq Composite Index may be lower, which will damage your future contract.
Another danger is that you can be called margins. This means that you will need to deposit more money in your own account to maintain your status. If you can't meet the margin call, your position can be removed, resulting in a major loss.
Finally, Nasdaq Futures is a beneficial product, which means you can lose more money than your investment. This is because in the short term there may be significant fluctuations in the cost of future contracts.
Contract specifications
Each Nasdaq Futures Agreement is to provide 100 times the value of the Nasdaq Composite Index.
The contracts are worth US dollars and have a minimum tick size of 0.25 index points.
Agreements are sold in multiplication of 5, so the smallest trade unit is 500 index points.
Agreements are fixed in cash on the third Friday of the month of the contract.
Commercial times
From 7:00 a.m. to 4:15 p.m., Nasdaq Futures is traded on CME. Chicago time ( CT ).
Agreements for trade are also available through electronic trade platforms.
Margin requirements
The margin requirement of Nasdaq futures contracts is usually about 5% of the contract price.
This means that if you want to buy a Nasdaq Futures Agreement with a value of $ 100,000, you will need to deposit $ 5,000 in your commercial account.
Risk management
Nasdaq futures contracts can be used to avoid risk or speculate on the future direction of the Nasdaq Composite Index.
However, it is important to understand the risks involved before the Nasdaq futures trade.
The most important danger is that the value of the Nasdaq Composite Index may be reduced, which will damage your future contract.
Another danger is that you can be called margins. This means that you will need to deposit more money in your own account to maintain your status. If you can't meet the margin call, your position can be removed, resulting in a major loss.
To conclude
Nasdaq Futures is a complex financial tool that can be used for different purposes.
However, it is important to understand the risks involved before the Nasdaq futures trade.
If you are considering Nasdaq Future Trading, you should consult the financial advisor to determine if it is right for you.
