Forex trading has taken over a slight edge over all forms of trading in the past few decades. All of this is because of distinguishing features proffered by it: convenience and comfort of control.
The graph of forex trading value fluctuates from country to country and from region to region. However, South Africa is embraced in those fortunate regions of the globe where the forex trading graph is at its peak.
To start trading in the region, you need to contact one of the credible and trustworthy regulated forex broker houses. The broker house then helps you to invest in the right stock market index.
There are various stock market indexes available to invest in South Africa. Nonetheless, Nas100 is one of the most popular stock market indexes in southern Africa and worldwide.
Nas100, also known as NASDAQ100, is one of the earliest and principal boughs of forex trading that includes the names of renowned firms of the world in the list.
But why is so? There are countless reasons for the popularity of this stock market index. Let us look at some of them..
Let us have a look.
Why is NAS100 so popular to trade in South Africa.
Credibility is one crucial feature that adds value to the broker house and helps to build goodwill in the market.
Being launches in 1985, the firm is one of the earliest forex trading indexes. That is why almost every other trader of South Africa is aware of its name. And same is the reason that the index holds a credible position in the foreign exchange market.
Involvement of big 5
Another reason that makes the Nas100 clutch an influenced position in the South African forex trade market is the big 5. so, what is the big 5?
Big 5, more popularly known as Big Tech, GAFAM/ FAAMG, or Tech Giants, is the term given to the five biggest technology companies in the world.
These firms include Google (Alphabet), Facebook, Amazon, Facebook, and Microsoft. Other partners include firms like Tesla, Starbuck, and many more. Now, these firms’ presence is a reason for NAS100 holding a remarkable position in the forex trade market.
It is considered the benchmark for the US technology index.
NAS100 index stands as the benchmark for the US technological index with having 3000 stocks listed.
As discussed above, the list includes the big 5. Which only altogether makes 40 percent of the total index.
On top of it, the list also includes many other known names, which aids for NAS100 to be considered the benchmark for the US technology index.
Higher volatility rate
Having a deep understanding of volatility is crucial for beginner traders as it aids in accelerating profit generation.
Volatility is a term that refers to the measurement of sudden drastic changes in the forex market. So whenever you invest in anything due to its market demand. You need to determine and predict its future market condition to ensure the maximum profit.
Different indexes have different volatility rates. However, NAS100 has the highest one. Other famous indexes like DOW Jones and S& P500 have a lower volatility rate than NAS100.
Extra leverage benefits for South African clients.
Fortunately, NAS100 grants some extra benefits to the countries where the graph of its value is high. And South Africa is blessed to be included in the list of that country.
Now, one of these benefits is related to leverage. However, some of the new forex traders are still unaware of its name. So, what is leverage?
So, leverage is a tool in the forex world that gives s a trader an extra advantage. That extra advantage enables a trader to peruse his trading operations with a much larger sum of money than in his original trading account.
So the leverage benefit granted by NAS100 to South African clients lets traders be a part of NAS100 without purchasing any security. This advantage is especially suited for new traders who do not have enough funds to buy NAS100.
Some other benefits that make NAS100 popular to trade in South Africa
Here are some extra advantages that one can enjoy by opting for NAS100 rather than any other stock market index.
- It allows you to have a large sum of liquidity than other index markets
- It allows you to be a member of some big and renowned firms such as Google, Tesla, and Microsoft without purchasing the actual shares of the firm.
- With NAS100, you get the option of going short or long.
- The Index enables you to speculate on the market movement based on available extensive market analysis.
- NAS100 enables you to have access to a popular growth-oriented index of the globe.
- With this index, you get a chance to maximize the potential of your investment portfolio.
Why choose NAS100 over any other indexes?
All of the upper reasons are efficient enough to convince anyone to choose NAS100 over any other index.
Furthermore, another reason to choose NAS100 is its history. The index had faced fluctuations in the past, but it had shown immense growth in the last decade.
And that is another reason that makes NAS100 a top choice for trade.
To outline, forex trading is the new trend in the online trading world that has gained a massive user rate due to its distinguishing features.
And NAS100 is a popular branch of it. It has many beneficial features for South African clients, including a higher volatility rate, extra leverage benefits, and many other things.
So if you are a new trader in South Africa looking forward to an efficient and profit generation market index, you should go with NAS100.
Furthermore, you’ll find tons of forex brokers to help you Starr trade. So, choose wisely and efficiently.