How does Nasdaq Futures work?
The NASDAQ-100 Futures are traded on the NASDAQ system. With its inception in 1971, NASDAQ is the short form for National Association of Securities Dealers Automated Quotations. It is also known as the second largest stock exchange in the US. The value of Nasdaq futures pertains to minimal ticks of 0.5 that are worth $50. There is also a contract limit. No trader is allowed to go for more than 10,000 net long or short at any given time. The margins of Nasdaq Futures are similar to that of S&P 500 futures. It is advisable to start with paper trading or opting for an online trading simulator to understand the dynamics of the trade. Some of the effective techniques that could be applied for trading successfully in the Nasdaq futures include moving averages, the swing rule and pattern recognition.
