Introduction To Nasdaq Futures

Nasdaq Futures: What You Need to Know

Introduction to Nasdaq Futures

Nasdaq futures are stock market index futures contracts traded on the Chicago Mercantile Exchange (CME) Globex electronic trading platform. They are based on the Nasdaq 100 Index, which tracks the performance of the top 100 non-financial companies listed on the Nasdaq stock exchange.

Key Features of Nasdaq Futures

* Contract Size: 100x the Nasdaq 100 Index * Trading Hours: 23 hours a day, Sunday evening to Friday evening * Settlement: Cash-settled to the value of the underlying index * Tick Size: $0.25 * Liquidity: High, with average daily volume exceeding 1 million contracts

Types of Nasdaq Futures

There are two main types of Nasdaq futures: E-mini Nasdaq 100 Futures (NQ): This is the most popular Nasdaq futures contract, offering a smaller contract size (5x the Nasdaq 100 Index) and lower trading costs than the larger NQ1 futures. Nasdaq 100 Futures (NQ1): This contract has a larger contract size (100x the Nasdaq 100 Index) and higher trading costs than the E-mini Nasdaq 100 Futures.

Benefits of Trading Nasdaq Futures

* Diversification: Nasdaq futures provide a way to diversify your portfolio by investing in a basket of technology stocks. * Leverage: Futures contracts allow you to control a larger position with less capital, providing potential for higher returns. * Hedging: Nasdaq futures can be used to hedge against the risk of a decline in the Nasdaq 100 Index. * Scalability: The wide range of contract sizes available makes Nasdaq futures suitable for traders of all experience levels and risk tolerance.