CFDs, or Contracts for Difference, are derivatives that allow traders to easily gain long or short exposure to the price movements in various asset classes including forex, stocks, commodities, and in this case stock indexes.
The JPN225 CFD tracks the Nikkei 225, or simply the Nikkei. It's Japan’s headline stock market index and includes 225 leading Japanese companies. The index has been around since 1950, and well-known constituents include Toyota, Honda, Nissan, Mitsubishi, Nomura, Sony and Fujitsu.
The Nikkei 225 covers a number of sectors and industries and can also be considered to be Japan's equivalent of the Dow Jones Industrial Average.
Whether you want to buy Japanese stocks without actually selecting individual companies, or short the Japan stock market as a whole, the JPN225 index is the easiest way to do so. It’s an easier way to gain exposure to the Japanese market as you won’t have to go through the process of opening an account in Japan.
JPN225 Historical data
During the 1980s, the Nikkei was the top-performing equity market in the world. Then, starting in 1989 it experienced one of the worst bear markets in history, falling from over 38,000 to below 8,000. Since the global financial crisis in 2008, it has enjoyed a strong bull market rising over 300% but still has had a way to go to reclaim its all-time high of 38,915.
On 11 March 2011, an earthquake with a magnitude of 9.0 hit the Pacific Ocean, just off the coast of Japan's Honshu Island. The death toll of this devastating disaster was an estimated 20,000. Two days later the Nikkei had plummeted by more than 10% and faced a drop of 1,015 points. This particular index faced the worst in the coming year and eventually hit an all-time low by 17%, and finished at 8455.35.
How to trade JPN225 with Eightcap?
With Eightcap you only need one trading account to trade CFDs on the JPN225 index and other asset classes around the world. In addition, Eightcap offers clients the MetaTrader 4 and 5 platforms, widely regarded the most advanced trading platforms in the world. Signing up is easy and in just a few minutes you will be ready to start your trading journey.