Investors are able to spread bet on the Japan 225 stock market index with these spread betting firms:

• Financial Spread
• Capital Spreads
• Inter Trader

However, you should note that this spread betting market may also be available with other Spread Betting Firms.

Japan 225 Spread Betting – More Information

 
For more details about speculating on the Japan 225 index, also see Japan 225 Spread Betting.

How to Spread Bet on Indices – Japan 225 Rolling Daily

 
As with a range of markets, investors can spread bet on stock market indices, like the Japan 225, to rise or fall.

Looking at a financial spread betting site like Inter Trader, as of Friday, they were showing the Japan 225 Rolling Daily market at 14188 – 14198. This means an investor could spread bet on the Japan 225 index:

• Rising above 14198, or
• Falling below 14188

When financial spread betting on the Japan 225 index you trade in £x per point. So, if you invested £4 per point and the Japan 225 moves 37 points then that would change your P&L by £148. £4 per point x 37 points = £148.

Rolling Daily Indices Markets

 
You should note that this is a ‘Rolling Daily Market’, therefore in contrast with futures markets, there is no closing date. If your trade is open at the end of the day, it will stay open and roll over into the next day.

If a trade is rolled over and you are speculating on the market to:

• Go higher – then you’ll often be charged a small financing fee, or
• Go lower – then you will often receive a small payment to your account

You can find more on Rolling Daily Markets, as well as a fully worked example, in our feature Rolling Daily Spread Betting.

Japan 225 Rolling Daily Index Spread Betting Example

So, if we take the above spread of 14188 – 14198 and assume:

• You’ve completed your market analysis, and
• Your analysis suggests that the Japan 225 index will move higher than 14198

Then you may choose to buy at 14198 and invest, for the sake of argument, £2 per point.

With such a spread bet you win £2 for every point that the Japan 225 index rises above 14198. On the other hand, it also means you will lose £2 for every point that the Japan 225 market decreases below 14198.

Thinking of this in a slightly different way, if you were to ‘Buy’ a spread bet then your profits (or losses) are found by taking the difference between the settlement price of the market and the initial price you bought the spread at. You then multiply that difference in price by the stake.

As a result, if after a few days the market started to increase then you might want to close your trade and therefore lock in your profits.

Therefore, if the market moved up then the spread, determined by the spread betting company, could be adjusted to 14262 – 14272. To close your trade you would sell at 14262. As a result, with the same £2 stake:

P&L = (Final Value – Opening Value) x stake
P&L = (14262 – 14198) x £2 per point stake
P&L = 64 x £2 per point stake
P&L = £128 profit

Speculating on stock market indices, whether by spread betting or not, is not easy. In the above example, you wanted the index to rise. Nevertheless, it can also decrease.

If the Japan 225 market had started to fall then you might choose to close your trade in order to restrict your losses.

So if the spread fell to 14141 – 14151 then this means you would settle/close your trade by selling at 14141. If so, your loss would be calculated as:

P&L = (Final Value – Opening Value) x stake
P&L = (14141 – 14198) x £2 per point stake
P&L = -57 x £2 per point stake
P&L = -£114 loss

Note – Japan 225 Rolling Daily index market accurate as of 24-May-13.

Live Japan 225 Spread Betting Prices and Charts

 
The CFD chart below will give users a useful view of the Japan 225 index market.

The above Plus 500 chart normally follows the underlying Japan 225 futures market (not the daily market).

To analyse spread betting prices and live charts for the Japan 225, you will probably require a financial spread betting account.

A spreads account would also let you trade on the shorter-term daily prices. Accounts are subject to status, credit and suitability checks.

If your account application is accepted then, once logged on, you will be able to check the real-time charts/prices. Usually, these are provided as part of the service. What’s the catch? You will probably get the odd sales call and/or newsletter from your financial spread betting provider.

Spread Betting: Accounts and Offers

 
For a detailed spread betting comparison, including spread sizes, the spread betting markets on offer and account services, please see Spread Trading Accounts.

In addition, for details on current spread betting offers from some of the leading financial spread betting companies, also see Spread Betting Offers.

Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.