Range of Markets

Financial CFD Markets Explained

We have collated a detailed description of all our financial CFD markets, providing you with detailed market and trade information plus descriptions to explain more about each particular instrument.

Japan 225, Daily

indices - Japan225
Index
JPX
10
(Shares only)
1
Daily
2300-2200
0.1
6(300 if guaranteed)
10
Adjusted ARR +/- 3.5%
NTR: Contracts % *
0 - 169
.50
169 - 507
2.50
507 - 844
5.00
844 +
15.00
Limited Risk NTR: Contracts % *
0 - 422
5.00
422 +
15.00
Spread Premium: Contracts Multiplier
0 - 67
1
67 - 135
2
135 - 269
4
269 +
20

*When placing a new trade the NTR Multiplier is calculated from the mid-point of the current price. E.g. if a share is currently trading at 199.7 – 200.3 with an NTR multiplier of ‘10% of the current price’ then the NTR Multiplier at that time will be 20 (10% of 200). Once you have an open position in a market, if that position is a buy it will be marked to the current bid price and therefore the NTR Multiplier will be calculated from the bid price. If the position is a sell it will be marked to the offer price and therefore the NTR Multiplier will be calculated from the offer price. Please note this means that NTR Multipliers will vary as the price and bid-offer spread of the market moves.


Market Description

The Nikkei is a stock market index for the Tokyo Stock Exchange which measures the performance of some of Japan’s top companies.

The index includes a variety of recognisable names such as Toyota, Mitsubishi, Sanyo, Sharp, Panasonic, Sony, Honda and many more. Studying information on these high profile companies can help CFD traders make educated trades on one of the world’s most important indices.

The word Nikkei comes from the Nihon Keizai Shimbun, a newspaper that created the Index in 1949 and still is responsible for its calculation. The Nikkei hit its all-time high of 38,957.44 on December 29, 1989. By comparison, its 21st century high is just above 18,300.

The Nikkei is a very volatile market for CFD trading, with daily movements of 200-300 not uncommon. This makes it a good trade for those wanting to risk a lot for the potential of huge returns.

If you want to place a CFD based on movements of the Nikkei with Spreadex, you can trade a product known as the Japan 225 Index.

Spreadex offers a Japan 225, Daily Future contract as well as different future contracts. These contracts will offer a spread on the Japan 225 of, for example, 9,733 – 9,753. If you think the price will end up being higher than our spread at the contract’s expiry period, you can buy at the ‘offer’ or ‘ask’ price (the higher part of the spread). If you believe the price will end up being lower, you can place a trade to sell at the ‘bid’ (lower part of the spread).

If your trade is successful you will win the points difference multiplied by number of contracts traded. If your trade is unsuccessful you will lose the points difference multiplied by number of contracts traded.


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