Checked on: 2026-08-07 | Broker terms, regulation, and pricing can change. Always verify at the official HFM site before opening an account.

Affiliate Disclosure: HNL Growth may earn a commission if you open an account through our links, at no additional cost to you. Risk Warning: CFDs and leveraged forex products are complex instruments and carry a high risk of losing money rapidly due to leverage. Between 65-95% of retail investor accounts lose money when trading CFDs, depending on the HFM entity and account type. Trading forex and CFDs may not be suitable for all investors. Consider your objectives, experience, and risk appetite before trading, and ensure you understand the risks involved. Broker Disclosure: HFM (HF Markets Group) is a live, regulated multi-entity broker (not a simulated prop-firm evaluation) — trades are executed with real capital in live market conditions, subject to normal market risk. Protections vary significantly by the specific legal entity that onboards your account.

US100 Explained: Trading the Nasdaq 100 Index CFD

US100 is HFM's CFD symbol for the Nasdaq 100 futures contract. It lets retail traders go long or short on the performance of 100 major non-financial US companies — predominantly large-cap technology — using leverage, without owning the underlying securities. Because it tracks the NQ futures price rather than the cash index (NDX), the quoted price can differ from the Nasdaq 100 level you see on financial news. This article explains that distinction, breaks down the full cost of holding a position, and covers the margin and volatility profile you need to evaluate before placing a trade.

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What US100 is — and what it is not

The instrument under the ticker: futures-linked CFD, not the cash index

When a financial news channel quotes "the Nasdaq 100 at 19,500," it is referencing the NDX cash index — a real-time price derived from the market capitalisation of its 100 components. US100.F at HFM tracks the price of the Nasdaq 100 futures contract (NQ), which trades on the CME. The two prices move closely together, but they are not identical.

The gap between futures and cash is called fair value. It reflects the cost of carrying the position to the futures expiry date, adjusted for dividends and the prevailing short-term interest rate. In normal market conditions this difference is a few points. It can widen briefly around quarterly contract rollovers, when HFM's instrument rolls from the expiring front-month NQ contract to the next one.

What this means in practice: If you compare an HFM US100 chart against a cash Nasdaq 100 chart from a financial news site, expect a small, persistent price divergence. Both will trend in the same direction; the futures-based price will simply carry a fair-value premium or discount at any given moment. This is a structural feature of futures-linked CFDs, not a pricing anomaly.

Index snapshot — composition, weighting, and concentration

The Nasdaq 100 includes the 100 largest non-financial companies listed on the Nasdaq exchange, ranked and weighted by market capitalisation. A modified weighting rule prevents any single stock from dominating the calculation, but the top five holdings — Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), and Alphabet (GOOGL) — have collectively represented approximately 40–45% of total index weight at recent market levels.

The practical implication: a significant earnings miss or macro shock affecting any one of those five companies can produce a visible move in the entire index, in a way that would not occur in a more diversified benchmark like the S&P 500.

Concentration note: US100 behaves more like a large-cap tech basket than a broad market index. That concentration amplifies both the upside during tech rallies and the downside when sentiment turns against the sector. The index composition is reviewed and rebalanced quarterly — the weightings reflect a snapshot, not a permanent structure.

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How a US100 CFD trade actually works

Going long and short with leverage — a plain-English walkthrough

A CFD (contract for difference) is an agreement to exchange the price difference between when you open and close a position. You never own shares in the Nasdaq 100 constituents.

Going long means you expect the index to rise. If you buy 1 lot of US100 at 19,500 and sell at 19,600, you capture 100 index points. At HFM's tick value of $0.01 per 0.01-point increment — equivalent to $1 per full index point per lot — that move is worth $100 before costs.

Going short means you expect the index to fall. You sell 1 lot at 19,500 and buy back at 19,400; the same $100 per lot mechanics apply.

Leverage means you deposit only a fraction of the notional position value as margin. At a 0.1% margin requirement (applicable on HFM's ZA, SC, and KE entities — see Table 1), controlling a $19,500 notional position requires approximately $19.50 in margin. That 1,000:1 leverage ratio means a 0.1% adverse move wipes the margin entirely.

Risk disclosure: CFDs are complex instruments. The majority of retail accounts lose money trading them. Leverage amplifies losses at the same rate it amplifies gains, and a position can move against you faster than you can react — particularly around high-impact economic releases.

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Disclosure: This page may contain affiliate links. We may earn a commission if you open an account through our links, at no extra cost to you.

Worked example — entry, exit, and the full cost calculation

Figures are illustrative only, using HFM's ZA/SC/KE entity specifications. Prices are hypothetical; actual market prices and financing rates vary.

Cost component	Calculation	Amount (USD)
Entry price	19,500 (illustrative)	—
Exit price	19,650 (illustrative)	—
Gross P&L	150 points × $1/point × 1 lot	+$150.00
Spread cost	3.0 points × $1 × 1 lot	−$3.00
Overnight financing (1 night)	See Table 2	−$3.74 (illustrative)
Net P&L (1-day hold)		+$143.26

A position closed intraday avoids the overnight charge — only the $3 spread applies. Hold for five days and financing accumulates to roughly $18.70 at the representative rate used in Table 2. This is why holding period is a cost variable, not a neutral choice.

Before placing trades with real capital, consider testing position-sizing logic and cost accumulation patterns on a demo account, where live prices and actual spreads are replicated without financial risk.

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The real cost of holding US100

Spread — what it is and when it widens

The spread is the difference between the buy (ask) and sell (bid) price at the moment you trade. At HFM, the published minimum spread for US100.F on Premium, Zero, and Pro account types across the ZA, SC, and KE entities is 3.0 index points (source: HFM instrument specification pages). One point on a 1-lot position equals $1, making the spread cost $3 per lot on entry.

Spreads are not fixed. During pre-market hours, overnight sessions, and around futures contract rollovers, the spread widens as liquidity thins. See Table 3 for session-by-session context.

Overnight financing — how it compounds on a leveraged position

If you hold a US100 CFD open past the daily rollover time (typically 22:00 or 00:00 broker time — confirm this in the platform), an overnight financing charge is applied. For long positions you pay the financing cost; for short positions, you may receive a credit or pay a charge depending on the prevailing rate environment.

The rate is based on a reference benchmark (typically SOFR for USD-denominated instruments) plus a broker markup. HFM publishes its current swap rates in the platform's instrument details panel and on official rate sheets. Always check the live rate before holding overnight, as it changes with the interest-rate environment. Table 2 uses a representative 7% per annum (reference rate plus markup) for illustration only.

Table 2 — Overnight holding-cost model (illustrative)

Based on a representative 7% p.a. annualised financing rate and a notional value of $19,500 per lot at a hypothetical entry of 19,500. Label: illustrative. Actual HFM swap rates differ by entity and market conditions — verify current rates in the platform or on HFM's published rate sheet before trading.

Holding period	Position value (1 lot)	Est. daily overnight cost	Cumulative overnight cost	Break-even move required (spread + financing)
1 day	$19,500	~$3.74	~$3.74	~7 index points
5 days	$19,500	~$3.74	~$18.70	~22 index points
20 trading days	$19,500	~$3.74	~$74.80	~78 index points

The 20-day row shows why position traders need to factor financing into their return target explicitly. Nearly 80 index points must be captured simply to cover holding costs at this representative rate. Whether a trade's expected move justifies that overhead is a strategy question, not a foregone conclusion.

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Margin and leverage — controlling more than you deposit

How margin requirements work for this instrument

Table 1 — US100.F instrument specification at HFM

Source: HFM official instrument specification pages (hfm.com/za, hfm.com/sc, hfm.com/ke — ZA, SC, and KE entities). Values may differ on the INT and EU (CySEC) entities. Always verify the specification page for your account entity before trading.

Parameter	Value (ZA / SC / KE entities)	Notes
Symbol	US100.F	Futures-linked index CFD
Contract size	1 contract per lot	—
Minimum trade size	0.1 lot	—
Maximum trade size	60 lots per position	Volume limit: 300 lots
Minimum price increment	0.01	—
Tick value per lot	$0.01 per 0.01-point move	Equivalent to $1 per full index point
Margin requirement	0.1%	~$19.50 per lot at a price of 19,500 (illustrative)
Limit and stop levels	800.0 points minimum distance	—
Negative balance protection	Yes	Confirmed on ZA, SC, KE entity pages
Platforms	MT4, MT5, HFM WebTrader, HFM Mobile, HFM Platform	All listed account types

For the EU entity (HF Markets (Europe) Ltd, CySEC licence 183/12, covering EEA residents excluding Belgium, plus Switzerland, the UK, Mauritius, Dubai, South Africa, and Kenya), margin requirements are set under MiFID II and ESMA guidelines, which apply different leverage caps for retail clients. Verify the applicable specification via the HFM trading accounts page for your entity and your entity's instrument page.

Practical position sizing for a retail account

The 0.1% margin rate reflects 1,000:1 leverage on paper, but trading at that level is not appropriate for most retail accounts. US100 regularly posts single-day ranges of 150–250 index points. At $1 per point per lot, a 200-point move produces a $200 swing — ten times the margin on a 1-lot position.

A common risk-management framework: limit each trade's risk to 1–2% of total account equity. On a $1,000 account risking 1% ($10), with a stop placed 30 points from entry, the maximum position size is approximately 0.33 lots.

US100 is not suitable for: Traders who cannot sustain multiple consecutive losses without needing to withdraw, those unable to monitor positions during the New York session when the instrument is most active, or anyone unfamiliar with how gap risk can cause a stop-loss order to fill at a worse price than specified.

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What moves the US100 — and in which direction

Scheduled catalysts: Fed decisions, NFP, earnings seasons

Table 4 — Macro catalyst reference

Directional tendencies reflect widely documented historical patterns and are not predictions. Past relationships between events and market direction can and do change.

Event	Typical frequency	Historical directional tendency on US100	Transmission mechanism
FOMC rate decision	8× per year	Rate cuts (or dovish pivots) historically positive; rate hike cycles historically negative	Lower discount rates increase the present value of future earnings — technology and growth stocks are most sensitive to this effect
Non-Farm Payrolls (NFP)	Monthly (first Friday)	Mixed: a strong print may support equities initially but can delay rate cuts, weighing on growth multiples	A hotter-than-expected figure raises the prospect of a higher-for-longer rate environment, which compresses the Nasdaq 100's earnings multiple
Top-5 constituent earnings	Quarterly (approx. Jan, Apr, Jul, Oct)	A significant beat or miss from Apple, Microsoft, Nvidia, Amazon, or Alphabet can move the index 1–3%+	These five stocks represent ~40–45% of index weight; their earnings revisions translate directly into index-level P&L
CPI inflation print	Monthly	Hotter-than-expected CPI historically negative in rate-hike environments; cooler readings supportive	Higher inflation sustains or raises the discount rate applied to future growth-stock earnings

Structural backdrop: rate environment and sector sentiment

The Nasdaq 100's concentration in technology, consumer discretionary, and communication services makes it structurally more sensitive to the interest-rate environment than the broader S&P 500. When rate expectations turn dovish, long-duration growth stocks are repriced upward disproportionately. When rates rise, the discount mechanism works in reverse. This rate sensitivity is a tendency, not a fixed relationship — stock-specific events such as major product cycles or regulatory actions can override the macro signal on any given day.

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Best times to trade US100 — session hours and liquidity windows

Table 3 — Trading session reference

Source: HFM trading hours as published on the instrument specification page. Spread characterisation is relative to the NY regular session; exact real-time figures require live capture. Confirm current trading hours and any rollover-break schedules on the HFM platform before trading.

Session	Hours (UTC)	Liquidity profile	Typical spread behaviour	Key events in window
Pre-market	09:00–14:30	Low to moderate	Wider than regular session	US data releases (CPI, PPI, retail sales); European equity market activity
NY open (first 30 min)	14:30–15:00	High — peak intraday volatility	May spike briefly at open before compressing	Monthly NFP; pre-open earnings; sharpest short-term price moves of the session
NY regular session	15:00–21:00	Highest of day	Tightest spreads of the trading day	Core price discovery window; FOMC announcements typically 19:00 UTC on decision days
Overnight / Asian	21:00–09:00	Low	Typically widest spreads; gap risk on open	Limited US-specific catalysts; overnight geopolitical or macro news can cause gaps

For intraday traders, the NY regular session offers the tightest spreads and deepest liquidity. For swing traders holding overnight, spreads widen at rollover and overnight financing begins to compound from the first night.

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Risk factors specific to leveraged index CFDs

Leverage amplifies both directions. A 1% fall in US100 on a 1-lot position (roughly 195 points at a price of 19,500) produces a $195 loss against a $19.50 margin. The position moves at many times the rate of an unleveraged investment in the underlying index.

Gap risk. Prices can open materially different from the prior close following overnight macro news or geopolitical events. Stop-loss orders cannot guarantee execution at the stated level during a gap.

Concentration risk. With approximately 40–45% of the index in five stocks, a single adverse earnings report or regulatory headline against any of them produces an outsized index-level move.

Overnight financing erosion. As Table 2 illustrates, a 20-trading-day hold incurs approximately $74.80 in financing per lot at a representative rate — before the spread. At modest profit targets, this cost is not marginal.

Entity and jurisdiction differences. Leverage limits, margin requirements, and investor protections vary across HFM's regulated entities. EU retail clients under HF Markets (Europe) Ltd (CySEC licence 183/12) are subject to ESMA leverage caps and mandatory negative balance protection. Clients on other entities should verify their specific protections on the relevant regulator's public register using HFM's stated registration numbers.

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How to practise position sizing and cost accumulation without capital at risk

A demo account replicates live market conditions — real-time price feeds, actual spreads, and the same order types as a live account — using virtual funds. It is the appropriate environment to test the mechanics from the worked example above, observe how overnight financing accumulates across a multi-day position, and practise position sizing, all without risking capital.

HFM's demo account is accessible across MT4, MT5, HFM WebTrader, and the HFM mobile app. US100.F is available on all supported platforms. No deposit is required.

What to verify in demo before going live:

• Observe the spread on US100.F during the NY open versus an overnight session — the difference is visible in real time
• Check the overnight swap charge applied to your long and short positions in the trade details panel
• Practice placing and adjusting stop-loss orders before relying on them in a live account
• Confirm the margin call and stop-out levels that apply to your specific entity and account type

Working through these variables in a simulated setting allows you to calibrate position size and holding-period expectations before committing real capital. The demo environment mirrors live trading in every material respect except the financial consequence of being wrong. Testing your understanding of margin, leverage, and cost accumulation in a no-risk setting provides a clearer picture of what these mechanics mean in practice before you encounter them with real money on the line.

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Frequently asked questions

What is the difference between US100 and NAS100? NAS100 is a label used on some other brokers' platforms. US100.F is HFM's specific instrument symbol for its futures-linked Nasdaq 100 CFD. Both derive from the Nasdaq 100 index, but contract specifications differ by broker. When trading on HFM, always use HFM's published symbol and verify the specification on the relevant entity page.

Why does the US100 price differ from the Nasdaq 100 level on financial news? Financial news typically shows the NDX cash index. US100.F tracks the NQ futures contract. The price difference — the futures fair value — reflects interest rate carry and dividends and fluctuates continuously. This is normal and expected, not an error.

What is the minimum margin to trade 1 lot of US100 at HFM? At a 0.1% margin requirement and an illustrative price of 19,500, the minimum margin for 1 lot is approximately $19.50 (ZA/SC/KE entities). Trading at the minimum margin provides almost no buffer against adverse price movement. Most traders maintain account equity well above the required margin level.

Can I short US100? Yes. CFDs support short positions — you profit if the price falls. The same spread mechanics apply; the overnight financing direction may differ from a long position depending on the current rate environment.

How often is the Nasdaq 100 rebalanced? The index is reviewed and rebalanced quarterly by Nasdaq. Constituent weights and the member list can change at each review. Refer to the Nasdaq index methodology documentation for current rules.

How do I know which HFM entity covers my account? HFM operates through multiple regulated entities across different jurisdictions. HF Markets (Europe) Ltd is regulated by CySEC (licence 183/12) and covers EEA residents (excluding Belgium), Switzerland, the UK, Mauritius, Dubai, South Africa, and Kenya. Other entities serve additional regions. Check the HFM regulation page to identify your entity and confirm its registration on the relevant regulator's public register before depositing funds.

Which HFM account types support US100 trading? According to HFM's official trading accounts page, US100.F is available on Premium, Zero, Pro, and InfinityX account types, with variations in spread structure, minimum deposit, and leverage. The Cent account trades only forex and gold, so US100 is not available there. Premium, Zero, and Pro accounts offer the full range of instruments including US100. Verify account-type availability and specifications on the HFM trading accounts page for your entity before opening an account.

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Risk warning: CFDs and leveraged forex products are complex instruments and carry a high risk of losing money rapidly due to leverage. Consider whether you understand how these products work and whether you can afford to take the high risk of losing your capital. Check the entity, terms and protections that apply in your jurisdiction before trading.

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Risk warning: CFDs and leveraged forex products are complex instruments and carry a high risk of losing money rapidly due to leverage. Retail investor accounts lose money when trading CFDs with most providers; the exact percentage varies by HFM entity and account type. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Check the entity, terms and investor protections that apply in your jurisdiction before opening an account or trading.