The SGX® Nikkei 225 Index Futures tracks the activities and sentiment of the Japanese stock market.

The index futures rose 1.52 percent on Thursday's trading; however, the Nikkei 225 Index declined 0.64 percent.

Among the stocks comprising the Nikkei 225, the largest movers on Thursday were: IHI Corp (TYO: 7013) ((OTC: IHICF) (OTC: IHICY)), down 10.6 percent; Sumitomo Chemical Co Ltd (TYO: 4005) ((OTC: SOMMF) (OTC: SOMMY)), down 5.57 percent; Screen Holdings Co Ltd (TYO: 7735), up 3.67 percent; Trend Micro Incorporated (TYO: 4704) ((OTC: TMICY)), up 3.34 percent.

The Nikkei 225 Index fell 0.64 percent on Thursday; however, the futures rose 1.52 percent.

Put simply, traders are predicting what’s going to happen with the index by December, and they seem to believe it will surge. But, is there a way to play the futures’ performance over the short term without being exposed to high risks and collateral?

What Are Binary Options?

Investing via binary options is just that: Playing a binary event. “Binary options are limited risk contracts based on a simple yes/no market proposition like will the markets go up by the end of the trading week,” binary options trading site Nadex explained.

Trading The Nikkei 225

There is a way to capitalize from the moves of the Nikkei 225 Index futures without directly investing in the actual futures contracts. By purchasing binary options, investors can play something as simple as, “Will the index future trade above 18,900 points this week?”

For investors thinking the answer is yes, buying the binary options might be the way to go. For those thinking the response is no, selling could be a better idea.

This is a list of the top five constituents of the Nikkei 225. This way, investors know what they are playing and can make a more informed decision regarding what they think will happen in the next few days.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Image Credit: Public Domain

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