Nas100 in Forex, also known as US100 Cash CFD or US100/US100 TECH, is a Contract for Difference (CFD) derived from the Nasdaq 100 Index. It enables investors to trade the spot index directly.
In this article, we will explore the relationship between NAS100 and Forex, explain the trading details of NAS100 Cash, and demonstrate how to trade NAS100 on two of the most popular Forex trading platforms – MT4 & MT5. Quick takeaways:
- Many Forex brokers offer Nasdaq 100 Cash CFDs on MT4/5 platforms.
- NAS100 enables investors to trade the Nasdaq 100 without the necessity of taking delivery of its constituent stocks.
- With flexible leverage and trading lot requirements, trading NAS100 CFDs can be initiated with a margin of less than $1.
Link between NAS100 & Forex
The underlying market for NAS100 is the world’s most high-profile equity index, the Nasdaq100 Index. NAS100 itself ranks among the most popular CFDs in the field of CFD trading.
Forex trading essentially falls under the umbrella of CFD trading, and virtually all Forex brokers provide indices CFDs, including NAS100, alongside Forex pairs. MT4, short for MetaTrader 4, stands as one of the most widely used Forex trading platforms. Its successor, MT5, or MetaTrader 5, represents an upgraded version of MT4.
NAS100 in Forex typically refers to Nasdaq 100 Cash CFD, which is widely available on the MT4/5 platform through many Forex brokers. In addition to NAS100, symbols like US TECH 100 and US100 are also commonly used by Forex brokers on their MT4/5 platforms to represent NAS100 Cash CFD.
What is NAS100 Cash CFD
As an index, the Nasdaq 100 cannot be traded directly. Investors have two alternative options:
- Create a stock portfolio by replicating the constituents of the Index.
- Trade through Nasdaq 100 Index Futures.
With 100 constituents in the Nasdaq 100 Index, buying or selling 100 stocks at once (option one) is impractical for most investors. Additionally, futures prices (option two) represent anticipated values for the future, which may differ from the spot price.
NAS100 Cash CFD addresses the demand for trading the spot Index directly. It closely mirrors the price of the Nasdaq 100 Index, enabling investors to trade the index and settle in cash without needing to take delivery of the underlying constituent stocks.
How to Trade NAS100 on MT4
Why can’t I find NAS100 in the Market Watch of the MT4 platform? This may be due to it not being included in the default symbol settings of your broker, or you may have inadvertently hidden it from the Market Watch. To enable it, simply follow these two steps:
1). Open the "Symbols" Window
Hover the mouse over the Market Watchwindow at the top left, right click, and select ‘Symbols’.
2). Enable NAS100 in "Symbols"
Locate ‘Indices’ in the Symbols window and expand it, and double click on NAS100 to light it up. NAS100 will appear in the Market Watch for trading.
Under the ‘Symbols’ window, the name of the asset class might vary among different brokers, try expanding the relevant ones if you cannot find ‘Indices’. Additionally, some brokers may use different trading symbols, US100, USTECH and US TECH 100 are also commonly seen.
Where to Find NAS100 on MT5
As the upgraded version of MT4, MT5 shares a similar interface with MT4. The steps to add and trade NAS100 on MT5 are more simple – simply search NAS100 in the field ‘click to add…’ located right after the last symbol in the market watch window, and then choose it from the drop-down options.
We should double-check if the symbol added is NAS100, as many Forex brokers also offer Nasdaq 100 Futures CFDs, as well as CFDs of individual stocks traded on Nasdaq (Nasdaq itself is a publicly listed company). All of these may appear in the search results.
When comparing NASDAQ 100 Futures CFDs with NASDAQ 100 Cash CFDs in trading, what are the distinctions? Aside from pricing differences, the spread (trading cost) of NAS100 Cash is typically tighter than that of futures CFDs.
US100 CFD Contract Details
Before starting to trade US100 CFD, it’s crucial to comprehend its contract specifications, including contract size, margin requirements, tick size, and spread.
Understanding these details will aid in determining the appropriate trading volume, calculating profits and losses, and estimating the level of risk we can assume.
1). US100 CFD Contract Size
Unlike Nasdaq futures, the contract size can vary among different CFD brokers. However, here is the typical contract size used by many brokers:
NAS100 Contract Size = $1 × NAS100 quote
It is only half the size of Micro Nasdaq futures. Additionally, the Nasdaq cash CFD supports a minimum trading volume of 0.01 lots.
2). US100 Margin Requirement
The margin requirement for US100 is primarily determined by the leverage provided by CFD brokers, typically ranging from 1:100 to 1:1000. Assuming US TECH 100 is traded at 18,000, the margin for 1 lot US100 would be $36 with a leverage of 1:500.
If we trade with the minimum 0.01 lots, it only requires a tiny margin of 0.36 USD, making US TECH 100 CFD trading affordable for everyone.
3). US100 CFD Tick Size
US100 TECH 100 is priced in two decimals with a tick size of 0.01. The difference between the ask and bid prices is the spread – the trading cost of NAS100. The spread is 1.1 pips, as shown in the following screenshot:
NAS100 Specs on MT4/5
While there might be some variations on the NAS100 contract specifications among different CFD brokers, one of the great things of MT4/5 is the contract specification can be found directly on the platform. Simply follow the steps below:
Step one
Right-click on the NAS100 quote in the Market Watch and choose “Specification” from the drop-down options.
Step two
The NAS100 contract specification window will then appear, where we can find the details such as trading hours, swap rates, minimum volume, and maximum volume.
Nas100 in Mobile MT4/5
Mobile trading is a significant factor contributing to the popularity of MT4 and MT5. While the interface of MT4/5 on mobile devices differs from the desktop version, below are the steps to add NAS100 to the MT4/5 mobile app:
Step one: On the “Quotes” screen, click on the “+” icon located at the top right to switch to the “Add symbol”.
Step two: Enable NAS100 from the “Indices” category within the “Add symbol” menu.
Step three: Return to the “Quotes” screen, where you’ll now find NAS100 listed among the available symbols.
NAS100 CFD Trading Hours
Unlike the Nasdaq 100 Index, which only fluctuates when the US stock market is open during US daytime hours, trading for US TECH 100 operates 23 hours a day, 5 days a week.
This arrangement is particularly advantageous for Asian traders, as it allows them to participate in trading activities outside of their regular working hours while still being active during nighttime trading sessions.
Some may wonder about the source of pricing when the underlying index is closed. It’s a complex question, but essentially, it operates similarly to after-hours trading for individual stocks.
| NAS100 Trading Hours (GMT+8) | ||
|---|---|---|
| US Daylight Saving Time | US Winter Time | |
| Opening Time | Monday 06:00 AM | Monday 07:00 AM |
| Closing Time | Saturday 05:00 AM | Saturday 06:00 AM |
| Daily Break | 05:00 AM – 06:00 AM | 06:00 AM – 07:00 AM |
MT4/5 Brokers with NAS100
1) ThinkMarkets
| Symbol | NAS100 | Max leverage | 1:500 |
| Contract size | $1 × Index quote | Regular spread | 0.8 |
| Platform | MT4/MT5/ThinkTrader | Min trading lot | 0.1 lots |
| Regulation | UK FCA, AU ASIC, Japan FSA, NZ FMA, CY SEC, SA FSCA | ||
2) INFINOX
| Symbol | NAS100 | Max leverage | 1:1000 |
| Contract size | $1 × Index quote | Regular spread | 1.2 |
| Platform | MT4/MT5 | Min trading lot | 0.01 lots |
| Regulation | UK FCA, SA FSCA, Bahamas SCB, Belize FSC | ||
3. Pepperstone
| Symbol | NAS100 | Max leverage | 1:200 |
| Contract size | $1 × Index quote | Regular spread | 2.0 |
| Platform | MT4/MT5 | Min trading lot | 0.01 lots |
| Regulation | UK FCA, AU ASIC, CY SEC, Dubai FSA | ||
4. Exness
| Symbol | USTEC | Max leverage | 1:400 |
| Contract size | $1 × Index quote | Regular spread | 3.0 |
| Platform | MT4/MT5 | Min trading lot | 0.01 lots |
| Regulation | UK FCA, CY SEC, SA FSCA | ||
5). Oanda
| Symbol | US100 | Max leverage | 1:888 |
| Contract size | $1 × Index quote | Regular spread | 1.8 |
| Platform | MT4/MT5/FXTRADE | Min trading lot | 0.01 lots |
| Regulation | US NFA, UK FCA, AU ASIC, Japan FSA, SG MAS | ||
