JP 225 Index
JP 225 is a stock market stock index for the Tokyo Stock Exchange Market in Japan. This index tracks the stocks of the top 225 companies displayed in Tokyo Stock Exchange Market.
The NIKKEI 225 Trade Chart
The NIKKEI 225 chart is displayed and illustrated and shown and displayed above. On the above example the stock index is named as JP225CASH. As a trader you want to find an online broker that provides NIKKEI 225 chart so that as you as a trader can begin to trade it. Example displayed above is of NIKKEI225 on MetaTrader 4 Forex and Platform.
Other Information about NIKKEI 225 Index
Official Symbol - NKY:IND
The 225 constituent stocks which make up the NIKKEI-225 are picked from best performing Japanese firms. The NIKKEI 225 share index is closely followed as an indicator of the prosperity of the Japanese businesses. The calculation of this stock index is a simple formula that is based on the market capitalization.
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The NIKKEI225 represents relative market movement of top 225 stocks in Japan. Because this index tracks 225 companies it'll be more volatile when compared to an stock index like Germany DAX30 that only tracks 30 companies.
As a trader wanting to trade this index, this stock index is in general more volatile & the trend for this stock index although generally moves upward over a long time it'll have more oscillations than other stock index. Your trading strategy should factor in more volatility when trading this index.
When the Japanese economy is doing good (most times it's performing good) this upward trend is more likely to be in-favor. A good stock indices trade strategy would be to buy dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies begin to report lower profits & lower growth prospects. It is due to this reason that traders begin to sell stocks of companies which are announcing & reporting lower profits and therefore index tracking these particular stocks will also start to move downward.
Hence, during these times, market trends are much more likely to be moving & heading down & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.
Contracts and Specifications
Margin Requirement per 1 Lot - JPY 90
Value per 1 Pip(Point) - JPY 0.1
NB: Even though general trend is in general moves upwards, as a stock indices trader you've got to factor in daily market volatility, on some days the index might oscillate or even retrace, market pull back may also be substantial sometimes and hence as a trader you need to time your entry precisely using this strategy: trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About equity management principles in index topics: What is money indices management & trading equity management methods.
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