Quick Guide to Spread Betting on the Japan 225 Stock Market Index

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Financial Spreads: Spread Betting and CFD Trading

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Where Can I Spread Bet on the Japan 225?

With a Financial Spreads account investors can take a view on a range of indices. Financial spread betting and CFD markets include the Japan 225 as well as the Wall Street index, Hong Kong Index and Germany 30.

Where Can I Access Live Japan 225 Prices?

When using a Financial Spreads account you can access numerous real-time prices including the Japan 225 and a wide array of other indices, commodities, currencies and shares prices.

Where Can I Get Live Japan 225 Charts?

With Financial Spreads you can access real-time trading charts for the Japan 225 and over a thousand other markets.

As well as multiple display styles, the charting package has a range of features that include:
Example Financial Spreads indices spread trading chart:

Stock Market Index Spread Betting Charts



How to Financial Spread Bet on the Japan 225

For example, let's suppose that you log on to FinancialSpreads and see a price of:

  Japan 225 Rolling Cash Sell

18075.5
Buy

18083.5


This is a brief example of how the market works.

Spread Betting MarketJapan 225 Rolling Cash
Spread Trading Price18076 - 18084
This MeansYou can spread bet on the Japan 225 Rolling Cash market to move:

  Spread Betting Above 18084, or
  Spread Betting Below 18076

This spread betting market is a Rolling market which means that there is no closing date. If you decide not to close your trade and the session ends then your position will roll over to the next trading day.

Note that if a trade is rolled over then you will either be credited or charged for overnight financing depending on whether you are speculating on the market to decrease or increase. For more information see Rolling Spread Bets.
Units (Points) TradedBets on the Japan 225 market are made in £x per point.

Where a point is 1 point of the stock index's price movement.

E.g. if the Japan 225 changes by 40 points then you would lose or gain 40 multiples of your stake.
Trade SizeYou choose how much you are going to stake per point, e.g. £2 per point, £5 per point, £15 per point etc.
Quick ExampleIf, as an example, your stake was £4 per point and the Japan 225 moves 25 points, you would win / lose £4 per point x 25 points = £100.


Spread Betting Example - Taking a Long Position on the Japan 225

Spread betting on the index to move up in value

You Choose Whether to Go Long or Short The Japan 225 to push:

  Spread Betting Above 18084? or
  Spread Betting Below 18076?

Let's Say You Go Long   Spread Betting Above 18084
You Select Your Stake Size, Let's Say You Opt For £2 per point
What Happens Next?
  • You make a gain of £2 for every point the Japan 225 increases above 18084
  • You will make a loss of £2 for each point the Japan 225 goes lower than 18084
If You Are Going Long of a Market Your Trading Profits (or Losses) = (Final Price - Initial Price) x stake
 
Example 1
The Japan 225 rises and the spread betting market is revised and changes to 18173.9 - 18181.9, therefore you would see this on Financial Spreads:   18173.9   18181.9
Close and Take Your Profit? At this point, you can opt to leave your bet open or close it and lock in your profit. In this instance you opt to close your position by selling at 18173.9.
Your Trading Profits (or Losses) = (Final Price - Initial Price) x stake
(18173.9 - 18084) x £2 per point
90.4 points x £2 per point
Your Trading Profits (or Losses) = £180.80 profit
 
Example 2
The Japan 225 falls and the financial spread betting market is revised to 17984.0 - 17992.0, i.e. on Financial Spreads you would see:   17984.0   17992.0
Time to Restrict Your Loss? You could decide to let your position run or close it, i.e. close your trade to restrict your loss. In this case you choose to settle your bet and sell at 17984.0.
Your Trading Profits (or Losses) = (Final Price - Initial Price) x stake
(17984.0 - 18084) x £2 per point
-99.5 points x £2 per point
Your Trading Profits (or Losses) = -£199.00 loss


Trading Example - Taking a Short Position on the Japan 225

Online spread betting on the index to fall

You Select Whether to Buy or Sell The Japan 225 going:

  Spread Betting Above 18084? or
  Spread Betting Below 18076?

Let's Assume You Choose to Sell   Spread Betting Below 18076
You Select Your Stake, Let's Assume You Choose £1 per point
So Now What Happens?
  • You will make a loss of £1 for each point the Japan 225 goes above 18076
  • You make a gain of £1 for each point the Japan 225 falls lower than 18076
If You Are Speculating on a Market to Decrease Your Trading Profits (or Losses) = (Initial Price - Final Price) x stake
 
Example 3
The Japan 225 decreases and the spread trading market is moved to 17936.5 - 17944.5, so you would see this on Financial Spreads:   17936.5   17944.5
Close for a Profit? At this point, you could choose to leave your position open or close it to lock in your profit. In this instance you opt to close your trade and buy the market at 17944.5.
Your Trading Profits (or Losses) = (Initial Price - Final Price) x stake
(18076 - 17944.5) x £1 per point
131.0 points x £1 per point
Your Trading Profits (or Losses) = £131.00 profit
 
Example 4
The Japan 225 goes higher and the market is adjusted and moved to 18211.7 - 18219.7, so you'd see:   18211.7   18219.7
Limit Your Loss?You may decide to let your position run or close it, i.e. close your trade to limit your losses. In this example you decide to close your trade and buy at 18219.7.
Your Trading Profits (or Losses) = (Initial Price - Final Price) x stake
(18076 - 18219.7) x £1 per point
-144.2 points x £1 per point
Your Trading Profits (or Losses) = -£144.20 loss


Financial Spread Betting on Japan 225 Futures

As well as the above rolling market, we also offer a Japanese 'Futures' market.

For example, let's suppose our quote is:

  Japan 225 March Futures Sell

18086.5
Buy

18098.5


Here is a brief example of how the market works.

MarketJapan 225 March Futures
Spread Betting Quote18086.5 - 18098.5
This Means ThatYou can speculate on the Japan 225 futures market settling:

  Spread Betting Above 18098.5, or
  Spread Betting Below 18086.5

On the closing date for the March market, 12 March 2015. Note that this is a 'Futures' market meaning that your bet will be closed automatically on a set expiry date. However, normally you can close your position, during market hours, before the futures market expires.

Note also that these futures markets do not have overnight fees.
Traded UnitsFinancial spread bets on the Japan 225 futures market are made in £x per point.

Where a point is 1 point of the stock index's price movement.

E.g. if the Japan 225 moves 55 points then you would lose or win 55 times your stake.
StakeYou decide how much you would like to risk per point, e.g. £1 per point, £4 per point, £20 per point etc.
Staking ExampleIf, for example, you have a stake of £3 per point and the Japan 225 changes by 32 points, you would lose / win £3 per point x 32 points = £96.


Trading Example - Buying Japan 225 Futures

Spread trading on the index to increase in value

You Now Work Out Whether to Go Long or Short The Japan 225 futures market closing:

  Spread Betting Above 18098.5? or
  Spread Betting Below 18086.5?

When the contract is settled (expires), 12 March 2015.

Let's Assume You Want to Go Long   Spread Betting Above 18098.5
You Decide Your Stake, Choosing £2 per point
So What Now?
  • You gain £2 for each point the Japan 225 moves above 18098.5
  • You will make a loss of £2 for every point the Japan 225 falls below 18098.5
If You Are Going Long of a Market Your Trading Profits (or Losses) = (Final Price - Initial Price) x stake
 
Example 1
The Japan 225 climbs and the financial spread betting market is revised and moved to 18185.4 - 18197.4, therefore you would see:   18185.4   18197.4
Time to Lock in Your Profit? You could decide to leave your trade open, letting it run to the settlement date, or close it and take your profit. For this example, you choose to settle your bet by selling at 18185.4.
Your Trading Profits (or Losses) = (Final Price - Initial Price) x stake
(18185.4 - 18098.5) x £2 per point
86.9 points x £2 per point
Your Trading Profits (or Losses) = £173.80 profit
 
Example 2
The Japan 225 moves lower.
Close and Limit the Loss? You could choose to leave your position open, and maybe let it run to the expiry date, or close it to limit your losses. For this example, you choose to run the trade until the market expires. Ultimately, the contract closes at 18017.1.
Your Trading Profits (or Losses) = (Final Price - Initial Price) x stake
(18017.1 - 18098.5) x £2 per point
-81.4 points x £2 per point
Your Trading Profits (or Losses) = -£162.80 loss


Trading Example - Selling Japan 225 Futures

Financial spread trading on the index to decrease

You Consider Whether to Go Long or Short The Japan 225 to close:

  Spread Betting Above 18098.5? or
  Spread Betting Below 18086.5?

On the closing date, 12 March 2015.

Let's Assume You Sell   Spread Betting Below 18086.5
You Select Your Stake, Opting for £1 per point
So Now What?
  • You will make a loss of £1 for every point the Japan 225 goes above 18086.5
  • You gain £1 for every point the Japan 225 pushes lower than 18086.5
When Betting on a Market to Go Down Your Trading Profits (or Losses) = (Initial Price - Final Price) x stake
 
Example 3
The Japan 225 futures market pushes lower
Close for a Profit? At this point, you may opt to let your position run to expiry or close it to take a profit. In this instance, you opt to run it until the market expires. The contract closes at 17969.3.
Your Trading Profits (or Losses) = (Initial Price - Final Price) x stake
(18086.5 - 17969.3) x £1 per point
117.2 points x £1 per point
Your Trading Profits (or Losses) = £117.20 profit
 
Example 4
The Japan 225 pushes higher and the spread trading market is adjusted and moved to 18184.4 - 18196.4. I.e. you would see:   18184.4   18196.4
Limit the Loss?At this point, you may choose to keep your trade open, letting it run to the settlement date, or close it, i.e. close your spread bet and limit your loss. In this instance you decide to settle your bet by buying at 18196.4.
Your Trading Profits (or Losses) = (Initial Price - Final Price) x stake
(18086.5 - 18196.4) x £1 per point
-109.9 points x £1 per point
Your Trading Profits (or Losses) = -£109.90 loss

Where Can I Practice Financial Spread Betting on the Japan 225?

Financial Spreads provide a free Demo Account which allows you to use trading orders, test new trading theories, practice spread betting and CFD trading and access candlestick charts on markets such as the Japan 225.

The Practice Account comes with a large range of markets like currencies, commodities, equities and stock market indices.

Open a CFD Trading / Spread Betting Demo Account


Nikkei 225 Index (Yen Denom) Commitments of Traders Report - 18 Apr 2017


Futures Only Positions, CME , Code 240743, (Nikkei Index x ¥500)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
30,050 9,886 1,618 32,759 20,572 64,427 32,076 74,059 9,632 41,983
 
Changes from 11 Apr 2017 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
-141 -4,688 -40 2,594 279 2,413 -4,449 1,923 -490 6,372
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
40.6% 13.3% 2.2% 44.2% 27.8% 87.0% 43.3%   13.0% 56.7%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
30 13 5 30 22 62 38 86    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
3:1   1.6:1 2:1   1:4.4
 
Net Commitment Change  
4,547  


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