Try a e-mini 30 days free demo!   Open Demo Account

E-mini Nasdaq 100 Futures

The E-mini Nasdaq 100 futures contract is a financial instrument derived from the Nasdaq 100 Index, which in turn is an index of the of the top 100 largest non-financial companies listed on the Nasdaq Stock Exchange. The Nasdaq Stock Exchange is the second largest stock exchange in the world. The Nasdaq 100 includes some of the biggest non-technology companies listed on the Nasdaq exchange, including Amazon, Tesla, Netflix, Microsoft, Costco & PayPal.

The nominal value of a single E-mini Nasdaq 100 futures contract is 1/5 the value of the full contract. It trades on the CME Group futures exchange under the symbol NQ. The contract trades 23 hours a day Sunday through Friday, making it an attractive choice for traders who want to take on Nasdaq risk at any given time.

The fundamental factors that affect the E-mini-Nasdaq 100 futures include macroeconomic data, earnings releases, political and geopolitical events, changes in technology trends, news reports related to specific companies within the index, as well as global economic and market conditions.

The components of Nasdaq 100 Index include companies from different sectors such as communications services, consumer discretionary, information technology and healthcare. Each company has a fixed weighting in the index based on their market capitalization which is reviewed every quarter. The top ten weighted companies listed on the Nasdaq Exchange (2/23) are Apple, Microsoft Corp., Amazon, NVIDIA, Tesla, Alphabet (GOOG), Alphabet (GOOGL), Meta Platforms, PepsiCo & Broadcom.

Like all futures contracts, the E-mini Nasdaq futures contract specifications include a contract unit, a price quote, a minimum price fluctuation and settlement method. For the E-mini Nasdaq, the minimum price fluctuation is 0.25 index points, equal to $5.00. A 1-point move is equal to $20.

The current prices of the companies listed on the Nasdaq exchange, as well as those within the Nasdaq 100 can be found at as well as other news channels and web sites, i.e., CNBC, Bloomberg, Fox Business, Barron’s MarketWatch & Wall Street Journal.

Among the various trading strategies that can be implemented with the E-mini Nasdaq futures contract is taking advantage of small price moves in order to enter and exit the market within a short period of time. Traders can use various technical indicators such as moving averages, oscillators and momentum indicators to try identifying potentially small moves in the market. Additionally, traders may also use fundamental analysis to determine which stocks are most likely to rise or fall in the near future based on macroeconomic data, earnings reports and news related events.

The benefits of trading the E-mini–Nasdaq futures contract include a low initial investment requirement with potentially high returns for those who have an understanding of the markets and a sound risk management strategy. Furthermore, the futures contract provides investors with access to liquid markets that function nearly 24 hours a day offering ample opportunity to capitalize on the contract’s price movement.

However, trading E-mini–Nasdaq futures contract carries risk. These include the possibility of large losses due to market volatility, generating margin calls in cases where an account’s value declines below the CME Group’s minimum to hold a position, called maintenance margin. Traders may venture into trading with little experience following the market and getting a sense of its price history. It is important for investors to be aware of the Nasdaq 100 futures contract’s historical price moves to provide context of the potential risks involved.

Overall, trading E-mini-Nasdaq 100 futures contract provides a widely available, liquid asset with which to trade and attempt to capture short term gains.

Trading futures generally can be a means by which one can diversify an overall financial portfolio with a mix of asset classes, including grains, metals, energies, livestock, interest rates and yes, stock indexes. Investors should research thoroughly before getting involved and have sound risk management strategies in place to help mitigate potential losses. Following the actual Nasdaq Index as well as the actual Nasdaq 100 index can help traders stay up-to-date on market movements and make informed decisions.

By understanding the components, specifications and current prices of the E-mini Nasdaq 100 futures contract as well as what strategies to use when investing, traders can gain a better understanding of the market and the potential risks and opportunities available via this valuable asset. By doing so, traders will help themselves stay well informed and equipped to make their trading decisions.

In conclusion, the Nasdaq 100 Futures is a great way for investors to take advantage of short-term price movements and diversify their portfolios with asset classes. With an understanding of the components, specifications and current prices and other relevant data points, traders can gain insight into price movements in the future and make educated decisions about when to enter or exit these markets. Additionally, being aware of the benefits and risks associated with E-mini–Nasdaq Futures trading is essential for successful investing. ̃́͐͂

e-mini Futures FAQ
Trading Image
Trading At The Palms Of Your Hands
Get Started with FREE Demo advanced charting, futures market analysis and trade simulation.
phone image
1-800-454-9572 1-310-859-9572
E-Mini Account - Create a New Account