NKY 225 Stock Index
NKY 225 is a stock market index for the Tokyo Bourse in Japan. This index tracks the stocks of the top 225 firms shown in Tokyo Bourse.
NIKKEI 225 Trading Chart
NIKKEI 225 chart is shown & illustrated and shown 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 can begin to trade it. The example That is illustrated above is that of NIKKEI 225 on MT4 FX and Software Platform.
Other Information about NIKKEI 225 Index
Official Stock Indices Symbol - NKY:IND
The 225 constituent stocks which constitute the NIKKEI-225 are picked from top Japanese corporations. 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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NIKKEI 225 represents relative trend movement of top 225 stocks in Japan. Because this index tracks 225 firms it will be more volatile when compared to an stock index like Germany DAX 30 that only tracks 30 firms.
As a trader wanting to trade this index, this stock index is generally more volatile and the market trend for this index although generally moves upward over a long time it will have more oscillations than other stock index. Your strategy should factor in more volatility when trading this index.
When the Japanese economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock index trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, firms start to report lower profits & lower business growth prospects. It is because of this reason that investors start to sell stocks of companies that arereporting lower profits & hence index tracking these particular stocks will also start to move downward.
Therefore, during these times, market trends are likely to be moving downward & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.
Contracts & Specifications
Margin Requirement Per 1 Lot - JPY 90
Value per 1Pip - JPY 0.1
NB: Even though general trend is generally moves upward, as a stock index trader you have to factor in daily market volatility, on some days the index might move in a range or even retrace, market retracement may also be significant at times & therefore as a trader you need to time your trade entry precisely when using this trade strategy: Stock Indices trade strategy and at the same time use proper money management principles just in case of more unexpected volatility in the market. About money management rules in index topics: What's money indices management and trading money management methods.
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