Trade Stock Indices

Nikkei 225 Index

Nikkei 225 is a stock market index for the Tokyo Stock Exchange Market in Japan. This index keeps track of stocks/shares of the top 225 companies displayed in Tokyo Stock Exchange Market.

Nikkei 225 Index - How to Trade the NIKKEI 225 Index

NIKKEI 225 Chart

NIKKEI 225 trading chart is displayed & illustrated above. On the above exemplification the index is named as JP225CASH. You want to find an online broker that provides NIKKEI 225 Index chart so that you can start & begin to trade it. The example That's displayed above is that of NIKKEI 225 on MetaTrader 4 FX & Index Platform.

Other Data about NIKKEI 225 Index

Official Index Symbol - NKY:IND

The 225 stocks that are part of the NIKKEI-225 are chosen from the best companies in Japan. People watch the NIKKEI 225 stock index closely because it shows how well Japanese businesses are doing. The index is figured out using a simple calculation based on how much the company is worth on the market.

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The NIKKEI 225 tracks the top 225 stocks in Japan, reflecting relative trend movements. Because it monitors more companies compared to indices like Germany's DAX30, which includes only 30 stocks, it tends to exhibit higher volatility.

If you're looking to trade this particular stock index, keep in mind it's usually more volatile than others. Sure, the long-term trend might be up, but the ride is bumpier with more swings. You'll want a strategy that handles this extra volatility.

Japan's economy often performs well. This leads to an upward trend that usually holds. For stock indexes, a smart move is to buy during dips.

During Economic Slow Down and Recession

During periods of economic downturn and recession, companies report declining revenues, profits, and growth forecasts. Consequently, investors and traders tend to sell stocks of companies with diminishing profits, leading to a decline in stock indices that track these particular stocks.

Therefore, during these times, the market trends are much more likely to be going downward & as a trader you should also adjust your strategy accordingly to fit the prevailing downwards trends of the stocks market index that you as a trader are trading.

Contracts and Specs

Margin Requirement Per 1 Lot/Contract - JPY 90

Value per 1 Pip(Point) - JPY 0.1

NB: Even though the prevailing trend often leans upward, stock index traders must factor in daily price volatility. Some days might see the index moving in a horizontal, range-bound fashion or experiencing a setback or pullback: these retracements can occasionally be considerable. Therefore, as a trader, you must strictly time your entries when using this 'Stock Index trade strategy,' while simultaneously adhering to proper risk control guidelines and rules should unexpected market volatility arise. Concerning capital management principles in index-related topics: refer to "What's equity management & equity management system/plan."

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