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Beginners’ guide to index | What is the JPN225?

What is the JPN225?

JPN225 is the abbreviation of the Nikkei Average Index, its English name is Nikkei 225, so it is often referred as the Nikkei 225 Index.
JPN225 was compiled by the Nihon Keizai Shimbun in 1950 to track the stock movements of 225 large companies listed on the Tokyo Stock Exchange. Hence, JPN225 ranks as the two most popular stock indexes in Japan alongside the Topix.

Constituent stocks of JPN225

The constituent stocks of the Nikkei index include large companies from all walks of life in Japan, coupled with its long history, it is regarded as the Japanese index that best represents the trend of the Japanese stock market. Futhermore, the constituent stocks of the JPN225 include 225 companies, covering Japanese technology, finance, consumer products, materials, capital goods.

Such as: Canon, Fujikura, Hitachi, Mitsubishi, Nippon, Toyota, etc.

However, it should be noted that the JPN225 only includes companies that have been listed on the Tokyo Stock Exchange. Hence, it does not include companies such as Nintendo that were originally listed on the Osaka Stock Exchange Company.

Unlike most mainstream stock indexes, the JPN225 uses price-weighted index (The Dow Jones Industrial Average in the United States is also a price-weighted index). Therefore, the higher the company’s stock price, the greater the impact on the stock index. However, the Nikkei Society conducts a review of the index every October. Hence, if the constituent stocks that do not meet the criteria, it will be removed.

How to trade JPN225 on HXFX?

1. First, click here to register an HXFX account for free.
2. Next, download the APP and log in to complete the real-name authentication.
3. Contact customer service to receive your exclusive free trial bonus.
4. Click “Quote”, select “JPN225” and click “Trade”. After the quotation page is displayed, you can click “Sell” or “Buy” to trade the index according to the trends.

5 advantages of foreign exchange trading

1. Leverage system
Investing a small amount of money will bring greater benefits, but may also bring greater risk of loss.
2. Low transaction costs
There are basically no handling fees, government taxes, etc.
3. Two-way transaction
Whether you are buying first and then selling in a bullish trend, or selling first and then buying in a bearish trend, you can get profit.
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It is available in 24 Hours, investors can trade according to their own time.
5. High liquidity
In the foreign exchange market, investors could exchange foreign currency at any time, even complete their transactions in a short time.

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Disclaimer: Information above can only be use for references and doesn’t represent our platform’s opinions.

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