NKY 225 Index

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

How to Trade NKY225 Strategy - NKY225 Strategies Example

NKY 225 Chart

NKY 225 chart is shown & 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 you as a trader can begin to trade it. The example Which is illustrated above is that one of NKY 225 on MetaTrader 4 FX Software Platform.

Other Info about NKY 225 Stock Index

Official Index Symbol - NKY:IND

The 225 constituent stocks that make up the NKY 225 are selected from top performing Japanese firms. The NKY 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.

Strategy to Trading NKY 225 Index

NKY 225 illustrates the relative market movement of the top 225 stocks in Japan. Because this stock index tracks 225 corporations it'll be more volatile when compared to an index like Germany DAX 30 that only tracks 30 corporations.

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

When the Japanese economy is performing well (most times it's performing good) this upwards 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 business growth prospects. It's due to 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 times, 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 - JPY 0.1

NB: Even though general trend is generally move upwards, as a stock index trader you have to factor in daily market volatility, on some days the stock index might move in a range or even pullback, market pullbackretracement may also be significant at times and therefore as a trader you need to mark-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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