What is NKY 225 Trade System? - Learn Trading NKY 225 Stock Index

The NKY 225 Trade Chart

The NKY 225 trade chart is displayed and illustrated above. On the example above the index is named as NKY225CASH. As a trader you want to find an online broker that provides this NKY 225 trade chart so that you can start to trade it. The example above is of NKY 225 on the MT4 Software.

Indices Trading System for NKY 225 Index

NKY 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 stock 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 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 index 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 money management & money management methods.