NASDAQ-100 index futures were launched at the CME (Chicago Mercantile
Exchange) in 1999; one contract is one-fifth of the size of its larger
counterpart. These affordable contracts were designed to track the
NASDAQ-100 Index. The NASDAQ 100 reflects companies across major industry
groups, including computer hardware and software, telecommunications,
retail/wholesale trade, and biotechnology.
NASDAQ-100 index futures are offered as a smaller version of the
NASDAQ-100 futures contract and are thus more affordable. These futures contracts are highly popular among individual and professional
investors. They have become the most liquid stock index futures contract
available after the S&P 500 futures contract.
The value of an NASDAQ-100 futures contract is calculated by applying
a $20 multiplier to the index’s present futures level:
The value of one NASDAQ-100 futures contract = Index value x $20
For instance, if the NASDAQ-100 Index level is currently at 1400, multiply
that number by $20. Because 1400 x $20 = $28,000, one NASDAQ-100
futures contract at 1400 index points is valued at $28,000.