Nikkei 255 trading

Trade both long and short positions on the Nikkei 255 to profit from the rising and falling prices of Japan’s most popular stock index

Trade Nikkei 225

Petrol piyasalarında daha az sermaye ile daha çok kâr elde etmek için PrimeXBT'de marjin işlem yapma fırsatı vardır. Petrol alım satımı yapmak istediğinizde, açtığınız pozisyon tutarının tamamını yatırmak zorunda kalmazsınız, bunun yerine marjı teminat olarak kullanırsınız, PrimeXBT de size işlemleriniz için ilave fon sağlar.

Kaldıraçlı marjin, pozisyonunuz doğru yönde gelişirse, daha yüksek kâr elde etmenizi sağlar. Ancak işleminiz başarısız olursa kayıpların da katlanma riski bulunmaktadır.

Why trade Nikkei 225 with PrimeXBT

  • Easy to startStart trading in minutes with quick and easy registration procedure, and low minimum deposit
  • Low trading feesSave on fees! Benefit from PrimeXBT’s low commission rates and tight spreads while trading all available assets
  • Secure tradingEnjoy PrimeXBT’s security features that will ensure your personal data and funds are always safe.
  • Best-in-class trading platformPrimeXBT’s award-winning software offers traders a variety of professional trading tools. Access cryptocurrencies, stock indices, commodities, and forex from a single account!
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How does Nikkei 225 trading with leverage work?

Margin trading is a well known and popular way for traders to make trades on the Nikkei 225, as well as other indices and markets, and involves using less personal capital for a trade and rather borrowing from PrimeXBT to magnify potential profits.

Margin trading means you do not have to deposit the full amount of the position you want open and rather you borrow these funds to leverage the position. If the trade is successful, the profits are also magnified, but if your trade on the Nikkei 225 goes the wrong way, your losses can also be greater.

The benefits of Nikkei 225 trading with leverage

  • Magnified profitsMargin trading is known for its ability to make larger trades compared to deposited amounts. Margin trading is one of the most effective ways to increase potential returns
  • DiversificationMargin trading means there is more available traders' capital left on the account which can be used to open new positions. Diversification allows to reduce market risk.
  • Gaining from the market fall.Margin trading also allows traders to open long and short positions in order to profit from both growing and falling market.

Nikkei 225 leverage trading example

For example, If a trader takes a long position of $2,000 on the Nikkei 225 and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.

Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.

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How to start trading Nikkei 225

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What is Nikkei 225?

The Nikkei 225 is Japan’s pre-eminent stock index, and tracks the top 225 most respected and valuable companies that are listed on the Tokyo Stock Exchange. The Nikkei 225 is compiled and maintained by Nihon Keizai Shimbun.

The Nikkei 225 comprises securities from a wide range of sectors including foods, automotive, manufacturing, chemicals, fishery, construction, mining, pharmaceuticals, retail, real estate, machinery, securities and insurance.

Nikkei 225 history

The Nikkei 225 was launched on September 7, 1950, and until the Japanese economic bubble throughout the 1980’s it progressed in a relatively normal manner. However, in the 80’s Japan’s economy ballooned so that stock prices and land values tripled from 1985 to 1989, with the Tokyo Stock Exchange accounting for 60% of global market cap.

Unlike other stock averages which typically grow at a steady exponential rate, the Nikkei reached its peak all time high on December 29, 1989, wherefrom then on afterwards it spent the next 20 years retracing back to just about 7,000 points in March 2009.

Nikkei 225 Index composition

The Nikkei 225 is composed of firms from all sectors of the Japanese economy, including major Japanese auto brands like Mitsubishi, Honda, Nissan and Suzuki, and major Japanese camera companies such as Nikon and Olympus.

Being that the Nikkei 225 is made up of such a large number of companies, the coverage of this index includes a minimum of half a dozen of the leading Japanese companies and institutions in any one sector.

Top 10 companies represented by Nikkei 225 and their Index weighting

CompanyIndex Weighting (%)
Fast Retailing Co., Ltd.10.84
Softbank Group Corp.3.86
Tokyo Electron Ltd.3.38
Fanuc Corp.3.36
KDDI Corp.2.84
Daikin Industries Ltd.2.37
Kyocera Corp.2.23
Terumo Corp.2.19
Shin-Etsu Chemical Co., Ltd.1.91
Familymart Co., Ltd.1.82
*information as of May 2020

Why is the Nikkei 225 Index important to traders?

The Tokyo Stock Exchange is one of the largest and most well-known stock exchanges in the world, and investing into Nikkei 225 derivatives provides access to Japan’s top 225 companies with a single instrument.

Although today Japan’s premier index has not recovered to its original peak from the 80’s and 90’s, the Nikkei 225 has reliably provided returns for traders over the past 3 years, and is regarded as one of the leading stock averages in Asia today.

How is Nikkei 225 calculated?

The Nikkei 225 is a price-weighted index. What this means is that the composition of the index is calculated and decided based upon the price of each security in comparison to the prices of all of the other securities in the index.

For example, if two stocks trade on the Tokyo Stock Exchange and are included in the Nikkei 225, and the first stock trades at a current price of $5, while the second stock trades at a current price of $50, the second stock will make up 10 times more of the total index compared to the first stock.

Why does trading Nikkei 225 with CFDs make sense?

The Nikkei 225 is a stock index rather than a single company stock which means that the growth of the index is pushed along by over a hundred companies. For traders, this means the risk is mitigated as one company’s poor performance won’t impact the index too much, and when there is a growth in macroeconomic factors, most of the top companies will benefit together

PrimeXBT’s ultra-fast order execution and its stable, reliable trading engine ensures the tightest spreads and best trading experience. The trading platform is packed with advanced trading tools, such as long and short positions, advanced order types such as stop loss and take profit orders.

The platform is also safe, secure, and offers 24/7 customer support service via a live chat, community channels, and much more.

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