Updated 
Anyone interested in tech stocks would likely be familiar with the NASDAQ Index, which has long been regarded as the main benchmark for the technology sector.
The Nasdaq-100 (often called the NASDAQ Index, NAS100, or US Tech 100) tracks 100 large non-financial firms listed on the Nasdaq. The index is diversified across several sectors, including consumer staples, healthcare, and utilities.
Investors, fund managers, and analysts rely on the index’s performance to understand the technology and innovation sectors of the global economy and to make investment decisions based on the data.
Want the best timing? See NAS100 trading hours in South Africa (SAST).
NASDAQ Terms (Quick Guide)
- NASDAQ: A US stock exchange where shares trade.
- The NASDAQ Composite: An index that tracks most Nasdaq-listed shares.
- NASDAQ-100: An index of 100 large non-financial Nasdaq-listed firms.
- NASDAQ Index (in this guide): We use this to mean the Nasdaq-100.
How to Trade the NASDAQ Index (quick steps)
- Confirm what you’re trading: this guide covers the Nasdaq-100 (NAS100/US Tech 100/NDX).
- Choose your instrument: NAS100 cash CFD or NAS100 futures CFD (if offered). If you’re new, read our CFD guide first.
- Pick your trading window: focus on the most active US session; note DST changes.
- Set risk rules first: set a stop-loss, choose position size, and set a daily max loss. Use this risk management guide as your baseline.
- Choose one simple setup: trend, range, or news-driven moves (CPI, FOMC, earnings).
- Account for costs: spreads, overnight funding, and broader moves driven by news.
Key Points
- The NASDAQ index serves as a key benchmark for the technology sector, comprising the 100 largest non-financial companies across various sectors, and is periodically reviewed to maintain balance.
- Trading the NASDAQ index via CFDs offers speculative opportunities to profit from price movements without owning the underlying assets, providing leverage and allowing both long and short positions.
- Proper risk management, including setting trade sizes, using stop-loss and take-profit levels, and using leverage cautiously, is crucial for trading the NASDAQ Index effectively.
What is the NASDAQ Index(NASDAQ100)?
The NASDAQ Index (NASDAQ 100) is the prime benchmark of the NASDAQ stock exchange, located in the United States. It tracks the 100 largest companies listed on the stock exchange, with constituents drawn from 8 sectors.
Notably, the NASDAQ index excludes financial companies and banks. This aligns with its stated purpose of tracking the world’s largest and most innovative non-financial companies.
The index employs a modified capitalisation method that assigns individual weights to included items based on their market capitalisation. This helps prevent the most prominent companies from exerting outsized influence on the index and promotes a more balanced representation across all constituents.
The NASDAQ is reviewed quarterly, and adjustments are made when necessary to maintain the index’s distribution standards. In July 2023, the NASDAQ underwent a special rebalancing after its largest constituents by market cap surged in price, making the index too top-heavy and unbalanced.
What Companies are in the NASDAQ Index(NASDAQ 100)?
Top 10 constituents of the NASDAQ 100 Index [1]
At the time of writing, the top 10 constituents of the NASDAQ are as follows:
| Company | Weight (%) |
| Microsoft Corp. | 8.67 |
| Apple Inc | 7.96 |
| NVIDIA Corp | 6.32 |
| Amazon Inc | 5.48 |
| Meta Platforms Inc | 4.69 |
| Broadcom Inc | 4.49 |
| Alphabet Inc (GOOGL) | 2.80 |
| Alphabet Inc (GOOG) | 2.72 |
| Costco Wholesale Inc | 2.54 |
| Tesla Inc | 2.29 |
Trading hours of the NASDAQ 100 Index [2]
The NASDAQ follows the trading hours of the New York Stock Exchange.
- Mondays to Fridays
- 9.30 am to 4 pm
- Extended trading hours
- Pre-market: 4:00 am to 9:30 am
- After hours: 4:00 pm to 8:00 pm
Note: The NASDAQ Index regular trading session runs 9:30 am – 4:00 pm New York time (with pre-market and after-hours trading)[1]. Trading hours vary across time zones. See our NAS100 Trading Hours in South Africa article for a region-specific breakdown.
The exchange is closed on Saturdays and Sundays, as well as nine national holidays, as follows:
- New Year’s Day
- Martin Luther King, Jr. Day
- Presidents’ Day
- Good Friday
- Memorial Day
- Independence Day
- Labor Day
- Thanksgiving Day
- Christmas Day
Why the NASDAQ Came to Be Known as the Leading Tech Sector Benchmark
A look at the top constituents of the NASDAQ tells us the answer.
Of the total weightage of the sectors, the technology sector accounts for 57.1% of the index [3]. This includes some of the largest technology companies in the world, such as Apple, Microsoft, Nvidia, Alphabet, and Tesla.
Given these factors, it’s only logical that the NASDAQ quickly became the primary benchmark for the technology sector as a whole.
Why trade the NASDAQ Index? [4,5]
With the world’s top technology companies accounting for over 45% of the index, the NASDAQ is both a competent barometer and a convincing representation of the technology sector.
Importantly, the NASDAQ isn’t just about tech stocks. The index tracks companies that are leaders in technology and innovation, including several established companies and household-name owners that are pushing the envelope with technological advances and innovative practices.
This curated area of focus has proven its merits many times over. Over the first three quarters of 2023, the NASDAQ outperformed the S&P 500 by a substantial margin of 22.3%. This was attributed to the recovery of the technology and growth-related stocks within the index.
Thus, investing in the NASDAQ allows investors to access the fast-moving tech and innovation sector through the lens of the most successful companies in history. Investors can also include NASDAQ in a tech portfolio to diversify risk and counterbalance against more speculative plays such as technology startups.
Historical trends of the NASDAQ Index [6,7,8]
The chart above shows the yearly returns of the NASDAQ Index from 2008 to 2023. During this period, the index’s return was negative in only two years, while ending positively in most other years.
Before 2008, the NASDAQ experienced heavy losses during and after the 2000 dot-com bubble, falling by 36.1% in 2000, 33.3% in 2001, and 32.6% in 2022. In 2003, the index had rallied, ending the year up by nearly 50%.
A similar trend can be seen after the 2008 crash, which was immediately followed by one of the NASDAQ’s best years in recent memory. And then in 2023, the index mounted another major bounce back after the 2022 pandemic crash.
It should be noted that the NASDAQ shows a high degree of volatility, with gains of up to 50% and losses of almost 40%. This is to be expected, given the index’s comparatively narrower focus.
Zooming out a little further reveals that the NASDAQ is capable of consistently outperforming other major market indices. Here’s how the NASDAQ performed across three 10-year periods, compared to the S&P 500 and the Russell 2000.
| Time period | NASDAQ | S&P 500 | Russell 2000 |
| 1991 – 1999 | 1749% | 442% | 337% |
| 2000 – 2011 | -36% | 7% | 72% |
| 2012 – 2023 | 733% | 371% | 215% |
How to trade the NASDAQ Index with CFD
Investors looking to capitalise on the volatile price movements of global tech stocks can do so by trading the NASDAQ with Vantage CFDs (Contracts for Difference).
CFDs allow speculation on the price movements of the index without direct ownership of the fund units or the stocks of the companies represented in the NASDAQ. Direct investment in the index is not possible, as it is simply a benchmark tracking a basket of company stocks.
Here’s a simple explanation of how trading the NASDAQ using CFDs works: You open a trade by choosing whether the index will go up or down. If the price moves in your favour, you make a profit. If it goes against your position, you will incur a loss.
At the end of the contract, the difference in the index price is settled directly in your account.
Why trade the NASDAQ Index with CFDs?
One advantage of CFDs is that you can make trades on leverage, which will increase your gains if the trade goes in your favour. However, using leverage will also increase your losses if the trade goes against you. Hence, leverage should be used with caution.
Also, CFDs allow you to take both long and short positions. This means that you don’t have to wait for the index to rise to make a profit. You can also take a short position to profit when the index falls.
Lastly, CFDs have a comparatively lower barrier to entry. You can start trading the NASDAQ with less capital, compared to buying shares of a NASDAQ index fund.
Analysing the NASDAQ Index market
Fundamental analysis
The NASDAQ is the leading benchmark for the global technology and innovation sector, and there are nuances to understand beyond just leading tech stocks such as FAANG or the Magnificent Seven (Apple, Microsoft, Amazon, Alphabet, Facebook, Netflix, and Tesla).
As such, analysing the NASDAQ entails developing a keen understanding of technology and innovation. Investors would do well also to study how consumer trends and preferences influence – and are shaped by – tech as it increasingly encroaches on everyday life.
Here are some key pointers when applying fundamental analysis to the NASDAQ Index.
Economic data
Economic releases like GDP, inflation, and jobs shape rate expectations. Those expectations can move major US indices, including the NASDAQ Index. That’s because changes in the Fed rate feed into borrowing costs, spending, and profits.
Right now, the key question is the path of US rates, not a single meeting. On December 10, 2025, the Fed cut rates again to 3.50%–3.75%. Officials also signaled they may pause further cuts if inflation stays sticky.
Lower rates can support NASDAQ-style growth stocks. Lower borrowing costs can lift demand and improve company earnings. But cuts can also be a warning sign. If inflation stays high, the Fed may slow or stop cuts. And if cuts happen because growth is weakening, markets can turn risk-off fast.
Corporate earnings
As the NASDAQ tracks some of the largest companies in the world, it is crucial to include corporate earnings in your analysis. Thankfully, news and media outlets widely cover top tech companies like Apple and Google, making it relatively easy for NASDAQ investors to track corporate earnings. It may also be worthwhile to seek out analysts’ opinions and predictions to better prepare for potential outcomes.
Industry trends
Given the tight interplay between technology and modern lifestyles, investors should expect consumer trends to affect the NASDAQ. This is especially true, as non-tech companies that introduce welcome innovations can also shift consumer preferences and spark demand in unexpected ways.
As such, NASDAQ investors should monitor consumer behaviour and emerging trends that could signal opportunities.
Technical analysis
To perform technical analysis for the NASDAQ, you would require a price chart, charting tools, and the knowledge of how to read them.
Here are two easy-to-read technical indicators to help you interpret the NASDAQ price action.
Percentage Price Oscillator (PPO)
The screenshot above shows a price chart for the NASDAQ Index in the top part. In the bottom section, the Percentage Price Oscillator (PPO is shown.)
In simple terms, the PPO is a technical indicator that can indicate market momentum in the NASDAQ. It is read using the green squiggly line and the grey straight line. When the green line is above the grey line, it indicates market momentum is climbing. When the green line is below the grey line, it means market momentum is falling.
PPO can reveal trends where price candles cannot. For example, take a look at the purple-shaded areas. The sudden appearance of a large green candle may signal the start of a market rally. However, the PPO was then in a downward slope, indicating a decline in market momentum. This was proven to be true when an even larger red candle formed, wiping out previous gains.
Lines of Support and Resistance
In the screenshot above, we see the NASDAQ price chart spanning the past two weeks.
The blue line at the bottom charts a Line of Support, whereas the blue line at the top charts a Line of Resistance.
In brief, a Line of Support shows the lowest point where prices can potentially fall back within a given range. It is drawn by connecting as many of the price chart’s weakest points as possible.
Conversely, a Line of Resistance shows the highest point at which prices have reached within a given range. It is drawn by connecting as many of the highest points in a price chart as possible.
Lines of Support and Resistance can be used to identify trends and spot incoming changes. For instance, we can clearly see that the NASDAQ has been trending upward over the past two weeks.
However, the more critical question is whether the trend will continue.
Incidentally, our chart here shows that the NASDAQ is likely headed for a downtrend soon, due to the rising wedge pattern formed by both lines. You can see that the bottom line is steeper than the top line – this indicates that the lows are catching up to the highs, which may bring about a price reversal in short order [9].
You can consult our other guides for detailed explanations on technical indicators and technical analysis. It’s crucial to understand that these are merely tools that help us form an informed opinion on the state of the market. No indicator is 100% accurate, nor is there any that can predict the index’s direction.
Trading strategies for the NASDAQ 100
When trading the NASDAQ 100, investors can use a variety of strategies, including short-, medium-, and long-term.
Short-term trading strategies
Day trading
Day trading on the NASDAQ focuses on short-term trades that typically last no more than a day, sometimes as little as a few hours. In day trading, no positions are held overnight to mitigate risk from unexpected news and events.
Day traders aim to achieve multiple winning trades throughout the day, stacking returns from numerous wins. This strategy requires discipline and the ability to make quick decisions, capitalising on opportunities as they arise, while avoiding overtrading or exceeding risk limits.
News trading
News trading, as a trading strategy, offers a more relaxed, ad hoc approach to investing in the NASDAQ. The idea is to monitor news, trends, and developments and evaluate each for potential trading opportunities.
As mentioned earlier, corporate earnings are essential to the NASDAQ, so news traders should monitor earnings reports and other key economic announcements. An economic calendar can prove useful for this purpose.
Mid-term trading strategies
Swing trading
Swing trading is a popular strategy that aims to capture returns by entering a position when a price swing on the NASDAQ is identified.
When the price changes direction from up to down, or down to up, a swing is said to have occurred. The challenge in swing trading is accurately identifying upcoming swings and then placing appropriate trades to capitalise on them.
Swing trades can be made on small swings that happen throughout the trading day, or on larger swings that span a more extended time period.
Depending on which you choose, price swings could last a long while, which means swing traders would need to keep their trades open to capture as much profit as possible until the swing runs its course. This may mean holding trades overnight, which carries the risk of volatility from unexpected events.
A typical swing trade lasts anywhere from two days to several weeks, depending on the volatility of the market and how big a swing the trader wants to capture. As such, swing trading is a suitable strategy for those who prefer medium-term strategies.
Long-term trading strategies
Long-term trading strategies can also pay off nicely when trading the NASDAQ. Such a strategy may last for several months or years.
Given NASDAQ’s tendency toward high growth and volatility, a good way to blunt the effects of wild price swings is a buy-and-hold strategy. Over the long run, investors may reap higher returns than other methods.
Investors with strong conviction in the NASDAQ’s long-term trend should note that they cannot directly own the index. Instead, you can invest in the NASDAQ via index ETFs, including:
- Invesco Nasdaq 100 ETF (QQQM)
- Invesco QQQ (QQQ)
- iShares Nasdaq 100 UCITS ETF (ACC)
When choosing a NASDAQ-tracking ETF, pay attention to the expense ratio, the fee charged by the fund manager. Generally, ETFs have low expense ratios, but they still affect your returns, especially over the long term.
Risk management strategies when trading the NASDAQ Index [10]
While the NASDAQ is a highly popular and important market index, proper risk management should still be practised during trading. Be sure to heed these tips and recommendations.
Set proper trade sizes.
The size of each trade should be limited to under 2% of your total capital to prevent your account from taking substantial losses from a few bad trades. This is instrumental in preventing your investment capital from being wiped out abruptly.
Make use of stop-loss and take-profit
Proper use of stop-losses and take-profits can help you prevent overtrading or holding on to a trade longer than you should.
Set a stop-loss point to cut your losses and preserve your remaining capital for the next trade. One suitable point to set a stop-loss is when the index falls below a key support level.
Meanwhile, use a stop-loss to avoid losing profits due to greed. A winning trade may tempt you to keep it open in hopes of capturing more profit. But in doing so, you’ll risk having the price move against you and wipe out your gains.
For instance, watch for when the index approaches a key resistance level after a significant upward move. This may be a good time to sell and take profit, before consolidation takes place.
Use leverage with caution.
Leverage can be a powerful ally, but it could also be your worst enemy. Remember that while leverage magnifies your gains from a winning trade, any losses will also be increased by the same degree. This can result in losses exceeding your capital, putting your account in the red.
Have a trading plan in place.
Above all, understand that trading requires a highly disciplined approach. Trading should be approached with discipline and logic, and the lack of clear guidelines is likely to lead to failure.
Formulate a detailed trading plan that spells out your goals and objectives, strategies you will use, risk appetite, and your maximum budget available for trading each week or month.
These factors will form the basis of your trading plan, helping you to develop the discipline and habits required for long-term success.
Conclusion: Trade the NASDAQ with Vantage via CFDs
Trade the NASDAQ 100 with Vantage CFDs to potentially benefit from global tech leaders without direct ownership of underlying fund units or company shares. Benefit from tight spreads and low cost – starting from $0 per trade.
Explore opportunities to generate potential returns across diverse market conditions, with the choice to open long or short positions, and control risk with tools such as negative balance protection, price alerts, and stop losses. With real-time new alerts on our mobile app and trading platform, you get the power and flexibility to react quickly to market developments and trade on the go.
Sign up for a live account and experience the Vantage advantage today.
FAQ: NASDAQ Index (Nasdaq-100) Trading
Is the NASDAQ Index the same as the NASDAQ100?
In this guide, yes. “NASDAQ Index” refers to the NASDAQ100.
What time does NAS100 open and close in South Africa?
It follows US market hours. Use SAST times and watch DST changes.
What moves NAS100 the most?
Big tech earnings, CPI, jobs data, and FOMC rate decisions.
Is NAS100 more volatile than the S&P 500?
Often, yes. It is more growth and tech-heavy.
What is the difference between cash and futures CFDs?
Pricing and overnight costs can differ. Specs depend on the broker.
References
- “Nasdaq 100 Companies – Slickcharts”. https://www.slickcharts.com/nasdaq100. Accessed 17 Nov. 2025.
- “Trading Hours for the Nasdaq Stock Markets – Nasdaq”. https://www.nasdaq.com/stock-market-trading-hours-for-nasdaq. Accessed 26 Nov. 2025.
- “Nasdaq 100 Index: What It Is, How It’s Weighted and Traded – Investopedia”. https://www.investopedia.com/terms/n/nasdaq100.asp. Accessed 17 May 2025.
- “The Nasdaq-100: Where technology isn’t just in the tech sector – Invesco QQQ”. https://www.invesco.com/qqq-etf/en/etf-insights/the-nasdaq-100-where-technology-isnt-just-in-the-tech-sector.html. Accessed 12 Dec 2025.
- “When Performance Matters: Nasdaq-100® vs. S&P 500 – Nasdaq”. https://www.nasdaq.com/reports/q3-2023-ndx-performance. Accessed 10 Dec 2025.
- “Historical performance of the Nasdaq-100 index – Curvo”. https://curvo.eu/backtest/en/market-index/nasdaq-100?currency=usd. Accessed 9 Dec 2025.
- “Historical Average Returns for Nasdaq 100 Index (QQQ) – Trade That Swing”. https://tradethatswing.com/historical-average-returns-for-nasdaq-100-index-qqq/. Accessed 12 Dec 2025.
- “A Short History of Nasdaq 100 Returns – A Wealth Of Common Sense”. https://awealthofcommonsense.com/2023/12/a-short-history-of-returns-for-the-nasdaq-100/. Accessed 12 Dec 2025.
- “How To Recognize And Trade Rising Wedge Patterns – Investopedia”. https://www.investopedia.com/articles/trading/07/rising_wedge.asp. Accessed 8 Dec 2025.
- “Risk Management Techniques for Active Traders – Investopedia”. https://www.investopedia.com/articles/trading/09/risk-management.asp. Accessed 12 Dec 2025.
