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<p>The Nikkei is price-weighted, which means the index is an average of the share prices of all the companies listed. Because each company's stock is weighted by its price per share, the Nikkei tends to be influenced by high-priced stocks such as technology stocks.</p><p><br></p>
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<p id="isPasted">The primary downsides of trading the Nikkei 225 include its price-weighted calculation method, exposure to currency fluctuations, susceptibility to domestic economic factors and political shifts, and vulnerability to natural disasters. Trading can also be inconvenient for those outside the Asian trading session, which can increase the risk of "gaps" in price movements. </p><p><br></p>
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