Trade Stock Indices

Nikkei 225 Index

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

Nikkei 225 Index - How to Trade the NIKKEI 225 Index

NIKKEI 225 Chart

NIKKEI 225 trading chart is displayed & portrayed above. On the above exemplification the index is named as JP225CASH. As a trader you want to find an online broker that provides NIKKEI 225 trading chart so that you as a trader can start to trade it. The example That is displayed above is that of NIKKEI 225 on MetaTrader 4 Forex & Index Platform.

Other Information about NIKKEI 225 Index

Official Index Symbol - NKY:IND

The 225 constituent stocks which make up the NIKKEI-225 are picked from top Japanese firms. The NIKKEI 225 share index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this index is a simple formula based on the market capitalization.

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NIKKEI 225 represents relative trend movement of the top 225 stocks in Japan. Because this stock index tracks 225 companies it will be more volatile when compared and analyzed to an index like Germany DAX30 that only tracks 30 firms.

As a trader wanting to trade this stock index, this index is in general more volatile & the market trend for this stock index although in general move 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 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 & Recession

During economic slow-down and recession times, companies begin to report lower profits and lower growth prospects. It is because of this reason that investors begin to sell stocks of companies that are recording and reporting lower profits and hence stock index keeping track & monitoring of these specific stocks also will start to move and go downwards.

Therefore, during these times, the market trends are much more likely to be going 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 as a trader are trading.

Contracts and Specs

Margin Requirement Per 1 Lot - JPY 90

Value per 1 Pip(Point) - JPY 0.1

NB: Even though general and overall trend is in general moves upward, as a stock index trader you've got to factor in daily market price volatility, on some days the index might move in a range or even retrace, market retracement may also be significant some times & therefore you as the trader you need to time your entry strictly when using this trade strategy: Stock Index trade strategy & at the same time use appropriate/proper money management guidelines and rules just in case of more unexpected volatility in the market. About equity management principles/guidelines in index topics: What's equity management and equity management system/plan.

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