Trade Stock Indices

JP 225 Index

JP 225 is a stock market stock index for the Tokyo Bourse in Japan. This index tracks the stocks of the top 225 companies displayed in Tokyo Bourse.

Best Strategies to Trading JP225 Guide - JP225 Tutorial Strategy

The NIKKEI 225 Trade Chart

The NIKKEI 225 chart is displayed 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 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 Stock Index

Official Symbol - NKY:IND

The 225 component stocks that 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 Japanese businesses. The calculation of this stock index is a simple formula based on 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 DAX 30 that only tracks 30 companies.

As a trader wanting to trade this index, this stock index is generally 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 strategy should factor in more volatility when trading this index.

When the Japanese economy is performing 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 business growth prospects. It is due to this reason that traders begin to sell stocks of companies which arereporting lower profits and therefore index tracking these particular stocks will also start to move downward.

Hence, during these times, market trends are likely to be moving downwards & 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 1Pip - JPY 0.1

NB: Even though general trend is generally moves upwards, as a stock indices trader you have to factor in daily market volatility, on some days the index might oscillate or even retrace, market pull back may also be substantial at times and hence as a trader you need to time your trade 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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