Trade Stock Indices

NKY 225 Index

NKY 225 is a stock market index for the Tokyo Stock Exchange Market in Japan. This index keeps track of the stocks of the top 225 companies displayed and shown in Tokyo Stock Exchange Market.

Best Strategies to Trading NKY225 Guide - Download NKY225 Strategies Tutorial

NIKKEI 225 Chart

NIKKEI 225 chart is displayed & illustrated and shown above. On the above example the index is named as JP225CASH. As a trader you want to find an online broker who provides NIKKEI 225 Index chart so that you as a trader can begin to trade it. The example That's illustrated above is that of NIKKEI 225 on MT4 FX and Platform Software.

Other Data about NIKKEI 225 Index

Official Stock Index Symbol - NKY:IND

The 225 constituent stocks which constitute the NIKKEI-225 are picked from top 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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NIKKEI 225 represents relative trend movement of the top 225 shares & stocks in Japan. Because this stock index tracks 225 companies it will be more volatile when compared to an 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 index. Your trading strategy should factor in more volatility when trading this index.

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

During Economic Slow Down & Recession

During economic slow down recession periods, companies start reporting slower earnings and revenues, slower profits & lower business growth forecast. It is because of this reason that traders start & begin to sell stocks/shares of companies that are posting and recording lower profits & hence index tracking these particular stocks will also start to move downwards.

Therefore, during these times, market trends are more likely to be moving downward & as a trader you should also adjust your strategy accordingly to fit the prevailing downwards trends of the stocks market index that you're trading.

Contracts & Specifications

Margin Requirement for 1 Lot/Contract - JPY 90

Value per 1 Pip(Point) - JPY 0.1

NB: Even though general trend is in general moves upward, as a stock index trader you've got to factor in daily market volatility, on some of the trading days this stock index might oscillate & move in a sideways range-bound move or may even pullback/retrace, retracement may also be significant some times & hence as the trader you need to time your entry precisely when using this trade strategy: Index trade strategy and at the same time use the appropriate/proper money management guidelines/techniques in case there is unexpected market volatility. About money management rules in index topics: What's money indexes management and trading money management methods & techniques.

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