The NASDAQ 100 Index is a basket of the 100 largest, most actively traded, US companies listed on the NASDAQ stock exchange. The index includes companies from various industries except for the financial industry, like commercial and investment banks. These non-financial sectors include retail, biotechnology, industrial, technology, health care, and others.
The NASDAQ 100 has shown its potential as a top performer over the past few years with its bias towards industry-leading technology companies and often out performs other well known US stock indices.
PrimeXBT allows traders to get the most out of trading the NASDAQ 100 index with advanced trading tools which allow traders to profit from the both growing and falling markets.
Leverage trading offers great potential profit opportunities while trading NASDAQ 100 but also carries certain risks. When you want to open a NASDAQ 100 trade, you don’t have to deposit the full amount of position value, instead you only use margin as insurance while PrimeXBT will provide you the rest.
If your trade on the NASDAQ 100 is successful under the margin, you will be able to earn additional profit too. However, the risk is that if the trade is unsuccessful the losses can be magnified too.
For example, If a trader takes a long position of $2,000 on the NASDAQ 100 and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.
Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.