JP225 Index
JP225 Stock Index is a market stock indices for the Tokyo Stock Exchange in Japan. This Index tracks the stocks of top 225 firms shown in Tokyo Stock Exchange.
JP225 Chart
JP225 Stock Indices trade chart is shown and illustrated above. On the above example the stock index is named JP 225CASH. As a trader you want to find an online broker that provides JP225 chart so that you can start to trade it. The example That is shown above is that of JP225 Indices on MetaTrader 4 Forex Trading Platform.
Other Information about JP225 Stock Index
Official Indices Symbol - NKY:IND
The 225 component stocks that makes up the JP225 Stock Index are selected from top Japanese companies. The JP225 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.
Indices Trade Strategy for Trading JP225 Index
JP225 Stock Index represents the relative trend movement of the top 225 stocks in Japan. Because this index tracks 225 firms it will be more volatile when compared to an stock index like Germany DAX30 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 index although generally moves upward 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 is doing well) this upwards trend is more than likely to be ruling. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits and hence Stock Indices tracking these specified stocks also will begin to move downward.
Therefore, during these times, trends are likely to be moving downwards & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contract Specifications
Margin Requirement Per Lot - JPY 90
Value per Pips - JPY 0.1
Note: Even though general trend is generally move upwards, as a trader you have to consider & factor in daily market volatility, on some of the days the Indices might move in a range or even retrace & pull-back, the market retracement move might also be a significant one at times and hence as a trader you need to mark-time your trade entry precisely using this trade strategy: index trading strategy & at same the time use proper equity money management guidelines just in case there is more unexpected volatility in the market. About equity money management methods in indices lessons: What's money Indices management & indices equity management strategies.
