NASDAQ 100 Trading involves investing in an index that has 100 largest most traded companies in US on the NASDAQ stock exchange.The index includes a wide of company categories but it excludes those from financial industry.
Individual investors explore the different NASDAQ 100 index by purchasing ETFs that are meant to track the performance of that index. One of the most common ETFs is the QQQQ.
The NASDAQ 100 Pre-Market Indicator (PMI) was built and managed by nasdaq.com to give investors and traders a general overview of the market based on the NASDAQ 100 stocks. This helps investors to estimate the market trends based on factors that affect the market. The PMI uses NASDAQ 100 index calculation during market hours.
NASDAQ 100 Trading is considered important due to the importance of the companies to the US and Global economy. The Nasdaq 100 PMI is useful to investors as it is the leading market indicator during trading hours. It also serves as the likely opening price of a stock. If a security does not trade in the pre-market, the investors calculation will use the previous day’s close price.