Nikkei 225 Stock Index

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

The NIKKEI 225 Trade Chart

The NIKKEI 225 trade chart is displayed and illustrated above. On the example above the index is named as JP225CASH. As a trader you want to find an online broker that provides this NIKKEI 225 trade chart so that you can start to trade it. The example above is of NIKKEI 225 on the MT4 Forex & Stock Indices Trading Software.

Other Trading Information about the NIKKEI 225 Index

Official Symbol - NKY:IND

The 225 components stocks that makes up NIKKEI 225 are picked from the top Japanese companies. The NIKKEI 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.

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The NIKKEI 225 shows the relative movement of top 225 stocks in Japan. Because this index tracks 225 companies it'll be more volatile when compared to an index like the Germany DAX 30 that only tracks 30 companies.

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

When the Japanese economy is doing well (most times it's doing well) this upward trend is more likely to be ruling. A good index trade strategy would be to buy dips.

During Economic SlowDown and Recession

During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.

Therefore, during these times stock index trends are likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you are trading.

Contracts and Specifications

Margin Required Per 1 Lot - JPY 90

Value per 1 Pips - JPY 0.1

NB: Even though the general trend is generally upward, as a trader you have to factor in the daily market volatility, on some days the stock index might oscillate or even retrace, stock index market retracement might also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock indices trading strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock index topics: What is stock index money management & stock index money management methods.