So, you have heard about the popularity of NAS 100 in South Africa, and you want to know the reason for its popularity. Right? If so, you are at the right site because, in this article, you will know why NAS 100 is so popular to trade in South Africa.
If you have heard about NASDAQ or USA 100 instead of NAS 100, don’t because NAS 100 is also known as NASDAQ and USA 100. NAS 100 was mainly made for the USA, but now it has become popular in other countries, such as South Africa. So, let’s have a look at the actual reasons for its popularity among different countries, including South Africa:
The Main Reasons for Popularity of NAS 100 in South Africa
This fully composed index NAS 100 is not just famous these days. It was famous and still famous; this is one of the most special things about NAS 100. So, let’s see whether it deserves this much fame or not. You will decide after reading the reasons for the popularity of NAS 100 in South Africa:
Experience
NAS 100 is one of the eldest indexes in the world. This successful trading index was launched in 1985; these numbers show how much experience NAS 100 has in this field of trading, especially in foreign exchange trading.
In the market, much older indexes were available in the market like Standard & Poor’s S&P500 index and NYSE when NAS 100 was launched. But it was capable of competing with them.
Now, it is at the top, and other indexes are looking at it from down. It is not just the experience of over 36 years that made this index. Still, the use of newly invented technology also worked for it so nicely. By using advanced technology, NAS 100 reached the milestone of the annual growth rate of 13.6% per year since the beginning.
That is why this firm became this popular and came to the countries like South Africa and ruled the market there.
High Volatility
Do you know why NAS 100 is so much popular among young investors and traders?
The reason for its popularity among young people is its high volatility. Young investors and traders of this modern world mostly believe in stats and charts. And the chart of NAS 100 says that it is among the most volatile indices all over the world.
NAS 100 is not just an ordinary index. It is an entire organization that includes the 100 largest non-financial companies. These numbers are extremely popular among the new generation and the investors of this generation.
Moreover, when we talk about the best performing indexes in the last decade, then NAS 100 is among those indexes because it is one of those indexes that have changed their way of working overtime to meet the modernity of this world.
There is no surprise in hearing that the most volatile day of NAS 100 as an index is Monday because it is the most and the first working day of the week. NAS 100 worked the best in the year 2018-19 with a volatility rate of 54 per hour. And now, some researchers have predicted that NAS 100 will again start to touch the sky of the trading market in the year 2023-24.
Think yourself! Why will a highly volatile company with this amazing performance not be this popular in South Africa? Because South Africa is among those countries where foreign exchange trading is at its peak.
Excessive Exposure
There are very few indexes in the world that give this much exposure to other big companies that NAS 100 gives. Surprisingly, NAS 100 has extreme exposure to the Big Five of this world:
- Microsoft
- Apple
- Amazon
And now, NAS 100 is the only index in the world that has exposure of 40 percent towards the Big Five. This exposure leads the NAS 100 to the success it deserves in smaller countries, such as South Africa.
Most of the indexes are just available in America or some other big countries like China. Or they are giving all of their services in the big countries like China and America because their market rates are high in these countries. But due to some extra service, NAS 100 has spread worldwide. And that is why NAS 100 is available and serving investors and traders of forex trading in South Africa.
The Most Asked Question about NAS 100 in South Africa
Many people ask many questions about NAS 100 and NAS 100 in South Africa. But one question is the most asked question about NAS 100 in South Africa. Here it is:
What is the Best Time to Trade NAS 100 in South Africa?
Well, foreign exchange trading is not that timely or disciplined work, to be honest. It is not a 9 to 5 job that cannot be done at any other time. Trading in forex can be done at any time and any place.
But some experts have compiled a time for South African investors and traders to trade NAS 100 at a particular time. Experts say that the best time for South Africans in NAS 100 trading is 09:30 and 16:00 (EST). They have assured us that this time will give you the best result because this is the market time of NAS 100.
But they also said that traders should also try (04:00 – 09:30 EST) and (16:00 – 20:00 EST) because these are before and after-market trading hours.
The Bottom Line
The popularity is never everlasting, but popularity lasts long when you keep working on your goal. And what we have assumed is that NAS 100 has worked on its goal over time to reach this milestone. And now, this index is among a few of those indexes that are famous in African countries as well.
If you have any questions popularity of NAS 100 in South Africa, then ping us up so that we can answer each of your questions.
