Nikkei225 Stock Index

Nikkei225 Stock Index is a Stock Indices market indices for the Tokyo Bourse in Japan. This Stock Index tracks the stocks of top 225 companies shown in the Tokyo Bourse.

The NIKKEI 225 Stock Index Trade Chart

The NIKKEI 225 Stock Index trade chart is shown and illustrated above. On the example above the index is named JP 225CASH. As a trader you want to find an online broker that provides NIKKEI 225 Stock Index trade chart so that you can start to trade it. The Stock Indices example above is of NIKKEI 225 Stock Index on the MetaTrader 4 Forex & Indices Trading Software.

Other Information about NIKKEI 225 Stock Index

Official Symbol - NKY:IND

The 225 components stocks that makes up NIKKEI 225 Stock Index are picked from the top Japanese companies. The NIKKEI 225 share index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this stock index is a simple formula based on market capitalization.

Strategy for Trading NIKKEI 225 Stock Index

NIKKEI 225 Stock Index shows relative movement of top 225 stocks in Japan. Because this index tracks 225 companies it will be more volatile when compared to an index like the Germany DAX30 that only tracks 30 companies.

As a trader wanting to trade this Stock Index, this Stock Index is generally more volatile and the market trend for this stock index although generally upward over a long time it'll have more oscillations than other Indices. Your strategy should factor in more volatility when trading this stock index.

When the Japanese economy is doing well (most times it is doing well) this upwards trend is more likely to be ruling. A good indices trade strategy would be to buy dips.

During Economic SlowDown and Recession

During economic slowdown and recession times, companies begin to report lower profits & lower growth prospect. It is because to this reason that traders begin to sell stocks of companiesthat are reporting lower profits & therefore the Stock Indices tracking these specified stocks will also begin to move downwards.

Therefore, during these times Stock Index trends are likely to be heading downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you are trading.

Contracts & Specifications

Margin Required Per Lot - JPY 90

Value per Pips - JPY 0.1

NB: Even though general trend is generally upward, as a trader you have to consider & factor in the daily market volatility, on some of the days the Stock Indices might move in a range or even retrace and pullback, Stock Indices market retracement move may also be a significant one at times & therefore as a trader you need to time your trade entry precisely using this trade strategy: Stock Index trading strategy & at same time use proper money management guidelines just in case there is more unexpected volatility in the market trend. About money management methods in indices trading topics: What is Stock Index money management & Stock Indices money management methods.