The Nasdaq Stock Market, also known as Nasdaq or NASDAQ, is an American stock exchange headquartered in New York City. Nasdaq refers to the Nasdaq Composite, an index of more than 3,300 stocks listed on the Nasdaq exchange. 

Some of the world’s foremost technology giants listed on the exchange include Apple, Google, Microsoft, Oracle, Amazon, and Intel. Most are technology and internet-related, but there are also financial, consumer, and industrial companies.

It is ranked second on the list of stock exchanges by market capitalisation of shares traded. Its trading technology is used by 70 exchanges in 50 countries, listed on the Nasdaq under the symbol NDAQ.

How can I trade Nasdaq?

Nasdaq is tradable as a single asset with TIOmarkets under the ticker ND, or alternatively, you can trade constituent company assets.

What causes the price of Nasdaq to rise or fall?

Nasdaq is primarily influenced by the performance of its constituent companies. Earnings reports, company news, industry news, and projected earnings by analysts are likely to have the greatest impact.

More specifically to Nasdaq, tech stocks have been a refuge for investors. Sentiment around tech stocks can cause sudden shifts with earnings season. Economic shocks can also make high-priced, unprofitable stocks like those in the tech sector, vulnerable.

Nasdaq is also influenced by economic reports such as unemployment rates, job creation, inflation, and other economic benchmarks, including the pandemic we are currently experiencing – the recent pandemic has wreaked havoc on global trade.

Nasdaq is a price-weighted index, meaning it is more heavily influenced by stocks with the highest values.

What are the best trading conditions for Nasdaq?

The stock can markets can be prone to large swings up or down based on economic turmoil, recovery and economic conditions.

Trade protection: Using risk tools like TIOshield (only available at TIOmarkets) can help to protect your trades against sudden breaking news that may swing the markets one or another. 

TIOshield lets you cancel any trade within 1 hour to get all of your margin back.

Execution speeds: Slow order execution speeds can lead to a big difference between the price you see when you click to open a trade, and the actual price your order is opened at. This difference between prices is called “slippage”.

At TIOmarkets, we have some of the fastest execution speeds you can find, resulting in minimal slippage and more orders filled at the price you clicked.

Leverage: Normally, a large amount of starting capital is required to invest seriously in stocks and indices, because only a small amount of stocks is not likely to yield the kind of results most traders are seeking. 

High leverage can greatly increase both the risk to your investment and the potential returns.

If you are comfortable with a high level of risk in return for higher potential gains, you may want to seek a leverage ratio that is commensurate to your investment goals.

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