06.03.2020 NIKKEI 225 Daily Analysis

06.03.2020 NIKKEI 225 Daily Analysis

  The Nikkei 225 is an integral stock market index in the Tokyo Stock Exchange. It consists of the biggest listed 225 companies in Japan which include Toyota, Canon, Yahoo, etc. The Nikkei is a way to gain exposure to the Japanese stock market without having to analyze the performance of an individual company. What captivates investors about Nikkei is its volatility hence because of this, it has a higher potential to make profits even though there is also a risk for losses if its price is affected. Nikkei price is affected by the movement of its currency prices thus the strength of the domestic currency is a leading factor of stock prices and also natural disasters like coronavirus place an effect on the stock prices, therefore that is why the Nikkei price is going down and today it is on 20,749 JPY.   Now since Nikkei 225 provides the average prices of the stock, traders can only trade the Nikkei through contracts for differences. Under the contract of difference, one makes use of leverage to make profits however losses are made so it’s important to make use of the risk management approach.