The Nikkei is the most widely-quoted index of the Tokyo stock exchange, comparable to the Dow Jones Industrial Average in the U. It is named after the Nikkei newspaper that began calculating the index in The Nikkei index is composed of Japanese companies from various industries. Notable companies include Toyota, Bridgestone, Kikkoman, and Panasonic.

This gives the larger companies more influence on the movement of the index. Anyone who wants to trade the Nikkei Index should carefully analyze the relevant factors and economic news before trading.

Trading the Nikkei a Few Facts about the Nikkei Index and How to Trade

UFX provides a variety of services to its account holders and can help you make an informed decision about trading the Nikkei. Trading the Nikkei Index. What You Need to Know The Nikkei index has gained a reputation for being the most volatile traded index, prone to sharp price movements.

Experts have said that trading the Nikkei is for brave, experienced traders. This ties the two economies together so that the Nikkei follows the movements of the U.

Tokyo Stock Exchange - Wikipedia

Trading the Nikkei requires keeping a sharp eye on what the U. If the Dow rises, the Nikkei will usually follow suit the next day.

Because of this, trading at the right time of day is very important. A good general rule is to buy if the Dow went up and sell if it went down. The Nikkei reacts to world events such as natural disasters, wars, political unrest, and economic news. It is also important to follow economic data from the U.

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