Nikkei 225 Index

The Nikkei225 Index is a stock market index for the Tokyo Stock Exchange Market in Japan. This index tracks the stocks of the top 225 companies listed in the Tokyo Bourse.

The NIKKEI 225 Index Chart

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

Other Data about NIKKEI 225 Index

Official Symbol - NKY:IND

The 225 component stocks which make up the NIKKEI 225 Index are picked from the top Japanese companies. The NIKKEI 225 share index is closely followed as a indicator of the prosperity and performance of the Japanese businesses. The calculation of this index is a simple formula based on the market capitalization.

Strategy for Trading NIKKEI-225 Index

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

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

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

Contracts and Specifications

Margin Required Per 1 Lot - JPY 90

Value of 1 Pip(Point) - JPY 0.1

Note: Even though the general and overall trend is in general upwards, as a forex trader you have got to factor in the daily price volatility, on some days the stock might oscillate or even retrace, the retracement may also be substantial some times and hence as a currency trader you need to time your trade entry accurately using this strategy: Indices strategy and at the same time use appropriate and proper & suitable money management strategies and guidelines in case there's unexpected price market trend volatility. About equity management methods and guidelines lessons: What's money management and equity management methods.

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