The Nikkei, also known as the Nikkei Stock Average, is a stock market index for the Tokyo Stock Exchange in Japan. It is often used as a benchmark for the performance of the Japanese stock market.
Traders use the Nikkei to track the overall direction of the Japanese stock market and to gain insights into the performance of specific sectors and companies. They may also use technical analysis and other tools to analyze the movements of the Nikkei and make trading decisions based on its trends and patterns.
In addition, the Nikkei is sometimes used as an underlying asset for financial instruments such as futures contracts, options, and exchange-traded funds (ETFs), which allow traders to speculate on or hedge against changes in the index.