One has to admit – While Nasdaq may not be the smoothest of names and hardly rolls off your tongue, it most certainly is preferable to the non-abbreviated form of the name: National Association of Securities Dealers Automated Quotations…
Established in 1971 the NASDAQ composite is the biggest and most widely traded out of the few branches that comprise the NASDAQ stock market, alongside the Nasdaq 100 and Nasdaq 100 financial index.
The NASDAQ composite is widely regarded as one of the top stock markets in the world, with a market cap of over 8.5 trillion dollars (as of July 2014), it currently houses over 2700 listings and continues to grow.
The Nasdaq composite allows listings for US companies as well as companies based in other countries which literally makes it a global market, as opposed to many other stock markets, it is also generally considered to be the best and most accurate reflection of the market direction for technology and internet based companies which arguably makes it the best market for today’s financial climate, with many of the leading companies around the world invest some if not all their development into those consumer markets.
The market opened at a level of 100 and began a steady climb from that point, like any stock market it is highly susceptible to various markets rising and even more so to market collapses, such as the ones that happened in 1987, late 1999 and 2007 until 2010.
Nasdaq’s biggest growth period took place in the late 90’s when fear of the upcoming Y2K bug spurred massive purchases of technology that would replace old systems, causing a sharp rise in prices for massive conglomerates such as IBM, Intel, Microsoft and others, leading the Nasdaq to an all-time high closing level of 5048.62.
However, as we are famously aware of, that dot.com bubble burst in spectacular fashion and with disastrous results for the tech industry, many companies went bankrupt and nearly all suffered massive loses to their net worth.
The market eventually bottomed out on October 10th 2002, hitting a level of 1,108.49, a level it had not seen since mid-1995; it began climbing only to once again stumble down in early 2008 with the onset of the global financial crisis, a period that lasted over 2 years.
The recovery of the US economy, gradual as it may be, and the resurgence of other global markets (China in particular) have aided in the NASDAQ’s recovery, to a level of over 4,000 points, where it is usually traded these days.
As you may imagine, trading in NASDAQ binary options is all about reading and reacting the market as quickly as you possibly can, the very nature of a stock market is volatile and subject to immediate changes which effect prices.
What can slightly complicate matters is the fact that when trading a single company you can focus your attention on that company alone, however, if you’re trading in NASDAQ options, you need to be mindful of an extreme number of massive companies, each with its own set of issues that are liable to present themselves at any given moment.
But while trading the NASDAQ composite binary options without at least some form of experience can prove to be difficult, once you expand your understanding of doing it correctly you position yourself to make quite the profit, and if you make profits on NASDAQ options you can quite easily find yourself having actual shares in one of those fancy Tech companies which help run our tech based world.