NKY 225 Index

NKY 225 is a stock market index for Tokyo Stock Exchange Market in Japan. This index keeps track of stocks/shares 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 who 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 MT4 Forex 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 the top performing Japanese firms. The NKY 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.

Strategy to NKY225 Index

NKY 225 illustrates and shows the relative market 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 corporations.

As a trader wanting to trade this stock index, this stock index is in general more volatile & the trend for this stock index although generally moves upward over a long time it will have more oscillations than other stock index. Your trading strategy should factor in more volatility when trading this index.

When Japanese economy is performing well (majority of the times it is performing good) this upwards market trend is more likely to be ruling & in place. A good strategy for trading this stock market index would be to buy dips.

During Economic Slow Down & Recession

During economic slow down recession periods, corporations begin reporting slower revenues, lower profits & lower business growth forecast. It is because of this reason that traders start to sell stocks/shares of corporations that are announcing & reporting lower profits & hence stock index monitoring these specific stocks also will begin moving and heading downward.

Hence, during these market times, the market trends are a lot more likely to be moving and going downwards & you as a trader should also adjust the strategy that you're using accordingly to fit & suit the ruling downwards trend of the stock index that you are trading.

Contracts and Details

Margin Requirement Per 1 Lot/Contract - JPY 90

Value per 1 Pip(Point) - JPY 0.1

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

Learn More Lessons: