In the last few decades, forex has emerged as a huge name in the trading world. The main PRO of forex trading is that you don’t need a proper setup to startup the trade. Instead, you can do it sitting at your home with comfort, so forex trading is free from all sorts of time, geographical, and physical barriers. And NAS100 is one essential and principal bough of it. Let us jump into more of its details.
what is Nas100
Nas100 (also known as NASDAQ100 or USA100) is one of the latest indexes investing in technology companies in forex trading with immense speed. Especially in South Africa
As elaborated by its name, NAS100 posses some big and credible firms based on market capitalization. These firms include some renowned names like Google, Facebook, Amazon, Apple, and Tesla.
NAS100 is one of the best ways to generate the maximum possible profit in the least possible time frame
Let’s look at some of the major reasons behind Nas100’s gaining so much popularity in South Africa.
The reasons behind NAS100 getting popular in South Africa
Now the question is, why do the residents of South Africa consider it a safer option than rest, even though it has faced some ups and downs in the last few years. here is the answer to this question
It has some big companies included in the index
The chief reason behind Nas100 getting popular is that it has some amazingly popular brands under its index.
To add to it big five, i.e., Microsoft, Apple, Amazon, Alphabet (Google), and Facebook. These big five brands are the highest weighted brands in the global index which encourages thier loyal customers to invest in NAS100.
Other partners are Intel, Netflix,, Pepsi, Cisco, Adobe, PayPal, Comcast, Tesla, Amgen, Costco, Gilead, and Starbux, which again holds a decent place in the world share market terms of credibility.
It has higher volatility.
The term volatility is crucial for any new forex trader to understand. in easy words, volatility refers to the uncertain degree of a sudden change in the market price
In the world of NAS100. Higher volatility is another big reason for its popularity. Different indexes have distinguished volatility measures, among which some are more popular, such as S&P500 or DOW JONES.
High exposure
No other index across the globe can help gain such a vast exposure than that of NAS100. And all of this is because of the involvement of the big five.
Big five, the term used for the five biggest and well-known companies globally, includes firms like Google, Facebook, Amazon, Apple, and Microsoft. These firms altogether possess over 40% exposure of the total index.
Leverage benefits for south African traders
leverage is a tool in the trading world that lets the trader control a far greater position than his deposit.
Nonetheless, not every country in the world is granted the benefits of leverage. However, South Africa is included among those lucky countries who can enjoy considerable advantages of it.
It means if you are a South African resident, you can purchase NAS100 without worrying about security purchases. This phenomenon is called short selling. The benefit is more beneficial for new traders who only want to put bulky capital in the start.
Convenient user device.
The best part of considering NAS100 over any other form of trading is free from geographical restrictions.
It means you don’t need a proper office or warehouse for the purpose. you can operate your trading account from home or any other place of your ease using your smartphone, laptop, or tablet
Its history
looking at the previous performance of an index in one best way to predict and judge its performance in the future. And the history of Nas100 proves why south African traders are so fond of it.
The index has observed a massive boost in its profit generation. i.e., 2010 to 2010 and is expected to grow even more in the future.
It is a safer choice for beginners
The leverage advantage of NAS100 makes it a perfect choice for south African resident as the tool let beginners buy NAS100 without owning any security and putting heavy capital at the beginning of their career
How to Trade with NAS100 in South Africa?
Now that you know all the answers to “WHY,” it’s time to get aware of ‘HOW.’ so how do you start to trade with NAS100 in South Africa.
You? can choose from the wide variety of forex brokers available in the market. Nonetheless, We have already listed some of them in the list below.
- Exness
- XM
- Hotforex
- Saxo
- eToro
These brokers enable trading through CFDs on various capital markets that possess commodities, cryptocurrencies, cryptocurrencies, e.t.c.
however, don’t forget to check for the following things in case you are not selecting one forex broker firm from the list, such as
- Regulations: Your broker must be regulated by one of the top-tier regulatory authorities like FSCA, etc. Check the broker's official website for the FSP number
- Overall fee: always check for overall NAS100 fees that include trading and non-trading charges.
- Deposit and withdrawal methods: always investigate deposit and withdrawal methods to avoid any unease in the long run
- Customer support: thing. A good customer support service can enhance your experience with the broker firm, whereas the bad one can worsen it. So always look for reviews before you shake hands.
- Trading platforms: These platforms should be user-friendly and contain important tools like the analysis tool. So don’t forget to check for it.
Conclusion
For summing up: it is another popular and fast-growing index in the forex trading world.\it posses some unique skills that distinguish itself from other forms of forex tradings.
Now that you know all the reasons and other crucial details, you are ready to explore the index. However, always check all of the points we have listed above before you hire the broker and ump actually in the scene.