NKY 225 Index

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

How to Trade NKY225 Strategy - NKY225 Strategies Example

NKY 225 Chart

NKY 225 chart is displayed & shown & displayed above. On above example the index is named as NKY225CASH. As a trader you want to find an online broker that provides NKY 225 chart so that as you as a trader can begin to trade it. The example Which is illustrated above is that of NKY 225 on MetaTrader 4 FX Software Platform.

Other Info about NKY 225 Index

Official Index Symbol - NKY:IND

The 225 constituent stocks which make up the NKY225 are chosen from top performing Japanese firms. The NKY225 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.

Strategy to Trading NKY225 Index

NKY 225 illustrates the relative market movement of the top 225 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 corporations.

As a trader wanting to trade this stock index, this index is in general more volatile and the market trend for this 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 performing well (majority of the times it's performing good) this upward trend is more likely to be in place. A good index trade strategy would be to buy dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospects. It is because of this reason that traders begin to sell stocks of corporations that arereporting lower profits & hence stock index tracking these particular stocks also will begin to move downward.

Hence, during these market times, the 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 Details

Margin Requirement Per 1 Lot - JPY 90

Value per 1 Pip(Point) - JPY 0.1

NB: Even though general trend is in general move upwards, as a stock index trader you've got to factor in daily market volatility, on some days the stock index might move in a range or even pull-back, market pullbackretracement may also be significant some times and therefore as a trader you need to time your entry precisely using this trading strategy: trade strategy and at the same time use proper money management guidelines just in case of more unexpected volatility in the market trend. About money management guidelines in stock index lessons: What's equity management and equity management strategies.

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