Nikkei 225 Index
Nikkei 225 is a stock market stock index for the Tokyo Bourse in Japan. This stock index tracks stocks of the top 225 firms shown in Tokyo Bourse.
NIKKEI 225 Chart
NIKKEI 225 trading chart is shown and portrayed & shown above. On the above example 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 can start to trade it. The example That is shown above is that of NIKKEI 225 on MetaTrader 4 Forex & Stock Indices Platform.
Other Information about NIKKEI 225 Stock Index
Official Indices Symbol - NKY:IND
The 225 component stocks that make up the NIKKEI 225 are selected from top Japanese companies. The NIKKEI 225 share stock index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this index is a simple formula based on market capitalization.
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NIKKEI 225 represents the relative trend movement of the top 225 stocks in Japan. Because this stock index tracks 225 firms it will be more volatile when compared to an index like Germany DAX 30 that only tracks 30 firms.
As a trader wanting to trade this stock index, this index is generally more volatile & the market trend for this stock index although generally move upward over a long time it will have more oscillations than other stock index. Your 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, firms begin to report lower profits and lower business growth prospects. It is because of this reason that investors begin to sell stocks of companies that arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.
Therefore, during these times, trends are likely to be moving downwards & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.
Contracts and Specs
Margin Requirement Per 1 Lot - JPY 90
Value per 1Pip - JPY 0.1
NB: Even though general trend is generally moves upward, as a trader you've to factor in daily market volatility, on some days the index might move in a range or even retrace, market retracement may also be significant at times & hence as a trader you need to time your trade entry precisely when using this trade strategy: Indices trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About equity management principles in index topics: What's equity management and equity management methods.
