Basic knowledge of the japanese market that you need to know
What are the trading rules of the Japanese stock market?
To invest in the Japanese stock market, understanding its market trading rules is fundamental. Let's take a look at the common trading rules in the Japanese stock market.
1. What are the trading hours for the Japanese stock market?
The trading hours for the Japanese stock market are mainly divided into two sessions:
Morning session: 9:00 am-11:30 am (Hong Kong time: 8:00 am-10:30 am)
Afternoon session: 12:30 pm-3:00 pm (Hong Kong time: 11:30 am-2:00 pm)
2. Are there price limits for stocks?
In many markets, stocks do not have price limits. However, due to the significant short-term volatility that stocks can experience as a result of factors such as investor sentiment, the Tokyo Stock Exchange has set a certain range for the daily price fluctuations. This price range is linked to the previous day's closing price. The table below shows the price limits for daily price fluctuations.
3. What is the trading mode?
The Japanese stock market adopts an intraday trading mode, which allows stocks bought on the same day to be sold on the same day. This type of trading mode is also known as T+0.
4. What are the minimum trading shares and the minimum price fluctuation unit?
For ordinary stocks of Japanese domestic listed companies, the minimum trading unit is 100 shares, and orders are placed in multiples of 100 shares. Other investment types, such as
ETFs, REITs, foreign stocks, and other symbols may have different minimum trading units, which can be viewed on the Futubull quote page.
The minimum price fluctuation unit of Japanese stocks is also related to the stock price. Different price levels have different minimum fluctuation units. Specifically as shown in the figure below.
5. What are the clearing rules?
The delivery time of the Japanese market is T+2. What does this mean? If the defined time of selling stocks is on day T, then two trading days after day T, the brokerage and clearing institutions will carry out fund and stock settlement, and the cash from selling stocks can only be withdrawn freely after the settlement.