. NIKKEI 225 Index Overview & NIKKEI 225 Index Stock Price - CSFX



Instrument- NIKKEI 225 INDEX

Minimum spread- 0.2

Typical spread- 1.8



Minimum nominal trade size- 1000

Overnight interest (annual) sell- -0.60%

Overnight interest (annual) buy- -0.1.70%

Trading hours (GMT) – 24*5

NIKKEI 225 Trading

The Nikkei is short for Japan’s Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a price-weighted index composed of Japan’s top 225 blue-chip companies traded on the Tokyo Stock Exchange. The Nikkei is equivalent to the Dow Jones Industrial Average (DJIA) Index in the United States.

The Tokyo Stock Exchange (TSE) was established in 1878. Initially, the TSE was founded as a marketplace for the exchange of bonds the government had issued to samurai. In addition to government bonds, the TSE also acted as an exchange for gold and silver currencies. By the 1920s, the TSE grew to include stock trading.

Understanding the NIKKEI 225 INDEX

The Nikkei was established as part of the rebuilding and industrialization of Japan in the aftermath of the Second World War. Constituent stocks are ranked by share price, rather than by market capitalization as is common in most indexes. Valuations are denominated in Japanese yen. The composition of the Nikkei is reviewed every September, and any needed changes take place in October.

Factors to keep in mind while trading NIKKEI 225 INDEX

  • Currency Valuations

Due to the nature of Japan’s export-led economy, the strength of its domestic currency is a leading determinant of the prices of stocks. A strong Yen means Japanese products may be less competitive internationally, which can sink stock prices. Conversely, a weaker Yen encourages demand abroad and can boost revenues, buoying the Nikkei 225. It stands to reason then that the Yen and the Nikkei tend to have an inversely-correlated relationship.

  • Economic Data

As with other indices, any event that affects the political/economic backdrop can hit the index. One such measure is US non-farm payroll data, which demonstrates the interrelation between the Nikkei 225 and the Dow Jones. Also, in times of growth and high employment, consumer spending may rise, buoying certain stocks.

  • Natural Disasters

Japan’s propensity to natural disasters can have a considerable effect on the Nikkei 225. For example, the 2011 Tōhoku earthquake and tsunami prompted huge selloffs, leading the index to drop more than 7% in the days following.


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