Wikitoro author Mike Druttman Written by Mike Druttman
Wikitoro fact checker Nick Zelver Fact checked by Nick Zelver
Updated Mar, 2024

Opening Thoughts

The Nikkei 225, also known as N225 or JPN225, is often compared to the Dow Jones Industrial Average in the United States, serving as a key indicator of Japan's economic health. This index reflects the performance of 225 leading blue-chip companies on the Tokyo Stock Exchange. While it's not possible to invest directly in the Nikkei 225, as it's an index, there are ways to engage with the stocks it represents, such as through Contract for Difference (CFD) trading and Exchange-Traded Funds (ETFs). In this guide, I'll share detailed insights on how to invest in this index using eToro, offering personal experiences and tips to consider in your investment journey.

Trade Nikkei 225!

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

Trading the Nikkei 225 through CFDs

It's important to understand that trading the Nikkei 225 on platforms like eToro involves dealing with CFDs, not directly with the stock exchange. The allure of CFD trading lies in its ability to speculate on the movement of indices markets without needing to own the actual assets. CFDs allow traders to profit from price changes by calculating the difference between the opening and closing prices of a contract. This flexibility means that you can achieve a Return on Investment (ROI) in various market conditions, provided your trades are well-planned and executed.

 

Advantages of Trading Nikkei 225 on eToro

After multiple trading sessions with the Nikkei 225 on eToro, I've identified several benefits worth noting:

  • User-Friendly Interface: eToro offers an intuitive platform that's easy to navigate, making it accessible for both beginners and experienced traders.
  • Flexible Trading Schedule: The platform allows you to place orders at your convenience, even when the market is closed, providing greater control over your trading activities.
  • No Transaction Fees on Indices: Trading indices on eToro comes without transaction fees, reducing the cost of trading.
  • Leveraged Trading: eToro provides the option to use leverage, enabling traders to open larger positions with a smaller capital outlay. However, leverage limits vary based on your country of residence and come with increased risk.

Remember, investing in CFDs carries a high level of risk due to leverage and may not be suitable for all investors. It's crucial to understand the risks and seek advice if necessary.

 

Exploring the Nikkei 225 Asset Page on eToro

When you access the Nikkei 225 asset page on eToro, you'll start in the Overview section, which is the default landing area. This section includes several key elements:

  • Graph: A basic graph displays the asset's performance. Note that a more comprehensive graph is available in another tab.
  • About: Brief information about the index.
  • Latest News: Updates relevant to Nikkei 225, provided by CityFALCON.
  • People Also Bought: Suggestions of other popular eToro indices among traders.
  • Copy Investors: This section features top traders investing in this index. Clicking the "Copy" button next to a trader's name opens their copy trading window.
  • Discussions: Engage in conversations with other traders about Nikkei 225. The discussion feed, similar to social media platforms like Facebook and Twitter, allows for liking, commenting, or sharing posts.
eToro Nikkei 225 trading page
eToro Nikkei 225 trading page

 

Integrated Trading Tools for Indices on eToro

eToro's platform integrates various tools for a seamless trading experience, eliminating the need to switch between apps or screens. These tools include:

  • Chart: An advanced live chart for Nikkei 225, customizable for time gaps ranging from 1 minute to 1 week.
  • News: Latest updates on the Nikkei 225, with mood indicators (positive, negative, or neutral) and a Sentiment Trends section that quantifies the general feeling about the index, including a 30-day average sentiment and top stories.

 

Trading the Nikkei 225 on eToro

To begin trading the Nikkei 225, search for the asset, select either "BUY" or "SELL," enter your investment amount, set your trade preferences, and then execute the trade.

Buying Nikkei 225 on eToro
Buying Nikkei 225 on eToro

 

Maximizing Your Investment Experience on eToro

To summarize, this guide covers everything you need to know for investing in the Nikkei 225 index on eToro. The insights and tips provided are relevant for both the web-based platform and the mobile app. Remember to apply these strategies thoughtfully in your trading endeavors and enjoy your journey on this versatile platform!

 

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Wikitoro author Mike Druttman About Mike Druttman

Mike Druttman, Head of Content at Wikitoro.org, has decades of expertise in marketing communications and business matching. Educated at the CAM Foundation and the Chartered Institute of Marketing, Mike has collaborated with businesses from the UK to Japan. He founded KEYZUNA, bridging Japanese businesses with global innovations. With a diverse background spanning high-tech to hospitality, Mike's articles at Wikitoro reflect his vast knowledge and unique perspective.

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76% of retail investor accounts lose money