NKY225 Index
NKY225 Stock Index is a market indices for the Tokyo Stock Exchange in Japan. This Stock Index tracks the stocks of top 225 firms shown in Tokyo Stock Exchange.
NKY225 Chart
NKY225 chart is shown and illustrated above. On the above example the index is named NKY 225CASH. As a trader you want to find an online broker that provides NKY225 chart so that you can begin to trade it. The example That is shown above is that of NKY225 Stock Index on MT4 FX Trading Platform.
Other Information about NKY225 Index
Stock Index Symbol - NKY:IND
The 225 component stocks that makes up the NKY225 Index are selected from top Japanese companies. The NKY225 share stock 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.
Strategy to Trading NKY225 Index
NKY225 Index 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 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 upwards over a long time it will have more oscillations than other Indices. Your strategy should factor in more volatility when trading this stock index.
When the Japanese economy is doing well (most 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 & lower growth prospect. It is because of this reason that investors start to sell stocks of companies that are reporting lower profits & hence Indices tracking these specified stocks will also start to move downward.
Therefore, during these times, market trends are likely to be moving downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contracts and Specs
Margin Requirement Per Lot - JPY 90
Value per Pips - JPY 0.1
Note: Even though general trend is generally moves upwards, as a trader you have to consider and factor in daily market volatility, on some of the days the Stock Indices might move in a range or even retrace & pull-back, the Stock Indices market retracement move may also be a significant one at times and therefore as a trader you need to mark-time your trade entry precisely using this trade strategy: strategy & at same the time use proper equity management principles just in case there is more unexpected volatility in the market. About equity management strategies in Stock Indices tutorials: What's Stock iindices equity management and Stock Indices equity money management strategies.
