How to trade the Nikkei 225 Japanese Index CFD
Trading international markets can open up opportunities not readily available in domestic markets.
Many traders in Australia, the UK and Europe for example, may want to capture trading opportunities in Asia and other regions. And with advances in technology – internet access, online trading platforms etc. – trading international markets is much easier than ever before. As a trader, you have much more choice and opportunity trading overseas markets which provide diversification and risk management to your trading portfolio.
While some traders may prefer to trade specific stocks in overseas markets, one of the better ways of gaining exposure is by trading Index CFDs. Index CFDs track the movement of the stock market index of respective countries. One of the major Index CFDs is the Nikkei 225, which is based on the top 225 companies within the Japanese market.
What is the Nikkei 225 Index?
Japan’s Nikkei 225 index was launched in 1950, is the leading stock market index in Japan and is listed on the Tokyo Stock Exchange (TSE). The Nikkei 225 index consists of the leading 225 publicly-owned companies in Japan, including Sony Incorporation, Toyota Motor, Central Japan Railway, Canon Inc and Kyocera.
The Nikkei 225 index is very similar to the Dow Jones index in the US, in that is is a price-weighted index (companies with higher stock prices receive a larger index weighting). Indeed, from 1975 to 1985, the Nikkei 225 was actually called the Nikkei Dow Jones Stock Average.
Trading the Nikkei 225 Japanese Index CFD
When you open the TradeDirect365 trading platform, you will notice the Nikkei 225 index is called the Japan 225. The Japan 225 tracks the movement of the Nikkei 225 Index which represents the top 225 listed stocks in the 1st section of the Tokyo Stock Exchange. It gives you exposure to some of the big names in Japan like Toyota, Honda, Asahi Breweries, Nippon Steel and Yamaha.
The Nikkei 225 is the most widely quoted average of the leading Japanese stocks. As one of the most actively traded indices in Asia, the Nikkei 225 can offer good trading opportunities in one of the largest and more liquid indices in the world.
Check out our Quick (2m35s) video about the Nikkei 225;
The Benefits of Trading Index CFDs
- Trading Index CFDs, like the Australia 200, Wall St 30, UK 100 or Japan 225, gives you access to the overall market of a region. It also saves you time and effort that is required in order to analyse hundreds of individual shares
- By trading Index CFDs, you can also take advantage of both the rise and fall of the top stocks on that particular index
- It also helps lessen your exposure to any sudden gaps and volatility that may affect individual stocks
- Leverage: trading CFDs allows you to trade using leverage
- Wide range of markets: all from one trading platform (access other asset classes such as stocks, forex and commodities)
How Can You Trade the Nikkei 225 Japanese Index CFD?
You can trade the Japan 225 index using the TradeDirect365 platform. Simply go to the Market Explorer tab > Indices > Asian > Japan 225. When you hover your mouse on the Japan 225 row and click on the Trade button, an order ticket will open and you can put in your buy or sell trade.
Benefits of Trading the Nikkei 225 Index
- The main advantage of trading the Japan 225 index is the minimal margin required to open a position – you only need a fraction of the margin required if you want to trade Japan’s leading index as a CFD
- Trading the Japan 225 index also gives you a competitive 8-point spread (fixed spread)
- Trading the Japanese index CFD via TradeDirect365 is easy and you can place stop to enter, stop loss and limit orders in with ease
- For those who want the added risk-management protection, we even offer guaranteed stops on the Japan 225 index.
- Trading the Japan 225 index gives you longer trading hours as it is open for trading during the US time zone
Nikkei 225 Index CFD Trading Specifications
- Trading hours: opens Sunday 00.00 to Friday 21.15
- Fixed Spread: 8 points at all times
- Expiry date: None (Rolling)
- Margin required: 0.50% (Leverage of 200:1)
- Guaranteed Stop-Losses: Yes
- Guaranteed Stop Distance: 1%
7 Benefits of Trading the Nikkei 225 Index CFD with TD365
- Tight, Fixed spreads: trade the Japan 225 index with a fixed spread of 8 points at all times
- No Commissions: we do not charge commission on Japan 225 trades
- We are ASIC-Regulated: TradeDirect365 is a trading name of Finsa Pty Limited (ACN 158 065 635 and AFSL No. 422661)
- Simple Trading Platform: our trading platform is fast and efficient – Find out more about our trading platforms here.
- Low Cost Trading: we are one of Australia’s lowest cost CFD providers
- Go long or short: trade your view by buying or selling the Nikkei 225
- GSLO: you can trade with a guaranteed stop, providing you with excellent risk management tools.
Charting the Japan 225 Index CFD
Charting the Japan 225 index CFD on our trading platform is very easy. You will notice a chart icon beside each instrument. Click on that to view the chart.
The TD365 platform provides you with everything you need when performing technical analysis across the chart. Not only is it fully featured, but it is very easy to use.
Trade Your View on the Japan 225 Index Today
If you already have a view on what you believe the short to medium term view is for the Japan 225 index, then why not put your analysis to the test and open a trade today?