About

Several futures instruments are derived from the NASDAQ composite index: the E-mini NASDAQ composite futures, the E-mini NASDAQ biology futures, the NASDAQ-100 futures, and the E-mini NASDAQ-100 futures.

The NASDAQ is the largest electronically traded stock exchange in the world.[1] The NASDAQ composite is a composite index of all securities traded on the NASDAQ exchange which has been continuously calculated since 1971.[2] Futures contracts oblige the parties to buy and sell the derivative at a predetermined price at a predetermined time.[3]

Futures contracts are beneficial to investors because of the leverage involved. While 100% of the cost is required to purchase stocks and their indexes (without borrowing on margin), only a fraction of five to fifteen percent the value of a futures contract is required to be deposited to gain control of the futures contract (called a performance bond).[4] Therefore, increases and decreases in the value of the futures contracts are a much greater percentage of the capital required to control futures than stocks either bought outright or on margin. Risk of loss and potential for profit are equally amplified through this leveraging.
NASDAQ derived futures

All of the NASDAQ derived future contracts are a product of the Chicago Mercantile Exchange (CME).[5] They expire quarterly (March, June, September, and December), and are traded on the CME Globex exchange nearly 24 hours a day, from Sunday afternoon to Friday afternoon.[5]

E-mini NASDAQ futures (ticker: QCN) contract’s minimum tick is .50 index points = $10.00[5] While the performance bond requirements vary from broker to broker, the CME requires $4,000, and continuing equity of $3,200 to maintain the position.[6]

E-mini NASAQ biotechnology futures (ticker: BIO) contract’s minimum tick is .10 index points = $5.00[7] While the performance bond requirements vary from broker to broker, the CME requires $3,750, and continuing equity of $3000 to maintain the position.[6]

NASDAQ-100 futures (ticker: ND) contract’s minimum tick is .25 index points = $25.00[8] While the performance bond requirements vary from broker to broker, the CME requires $17,500, and continuing equity of $14,000 to maintain the position.[6]

E-mini NASDAQ-100 futures (ticker: NQ) contract’s minimum tick is .25 index points = $5.00[9] While the performance bond requirements vary from broker to broker, the CME requires $3,500, and continuing equity of $2,800 to maintain the position.[6