Japanese stock trading

1. Japanese stock market

The Japanese stock market is one of the oldest and largest stock exchanges in Asia. The Tokyo Stock Exchange (TSE) is the most famous stock exchange in Japan and lists many household company names like Sony, Toyota, and Panasonic. The main indices for the TSE are the Nikkei 225 and TOPIX, which are important market indicators widely followed by global investors.

2. How to trade Japanese stocks

Please update the App to the latest version (mobile version V14.12.15408 or above).

To trade Japanese stocks, please follow the steps below:

2.1 Activate Japanese stock trading permissions

1. Search for a Japanese stock

2. Enter the Detailed Quotes page

3. Tap the Trade button

2.2 Start a cash transfer to your Universal Account - Securities

Go to Accounts > Transfers > Cash Transfer

Note: 

• The Japanese stock buying power in your Universal Account - Securities is separate from your other accounts for trading Hong Kong stocks, US stocks, etc. In case a margin call is triggered on your Universal Account - Securities, please make a Cash Transfer to meet the margin call.

• If you don't have separate accounts for trading Hong Kong stocks, US stocks, etc., and only hold a Universal Account, your buying power will be shared across different markets.

• If you borrow JPY for stock trading in your Universal Account - Securities, margin interest will be incurred. To prevent this, you must exchange non-JPY cash in your account for JPY before trading.

2.3 Place an order for a Japanese stock

Go to Markets > JP > Tap a specific Japanese stock

Or go to Watchlist > Tap the Search icon in the upper right corner > Enter a stock symbol

3. Trading rules

3.1 Trading hours

The Tokyo Stock Exchange operates from Monday to Friday during standard trading hours.

Notes:

• The auction trading session is from 7:00 AM to 8:00 AM Japan Standard Time (JST) and determines the day's opening price. The morning trading session ends at 11:30 AM JST and establishes the morning's closing price. The closing auction session lasts from 3:25 PM to 3:35 PM JST and establishes the day's closing price. For more information on the closing auction, click here.

• The Tokyo Stock Exchange does not have pre-market and post-market trading sessions like the US stock market.

• In addition to weekends and public holidays, the Tokyo Stock Exchange may be closed on certain days as specified on the website.

3.2 Minimum trading unit

The minimum trading unit for Japanese stocks is usually 100 shares (lot size), but different minimum units may apply to certain stocks.

Note: Fractional trading is currently not supported for Japanese stocks.

3.3 Minimum price increment (tick size)

The minimum price increment of Japanese stocks is usually determined by the stock price level. *Stocks with higher liquidity in the TOPIX index will adopt smaller price increments.

*Note: For the list of stocks with smaller price increments, please refer to the exchange's official website.

3.4 Daily Price Limits

Stock prices are determined in real time based on the balance between bids and asks. However, prices cannot not reach 10 or 20 times the opening price during the day. This is because the Tokyo Stock Exchange sets a price range, known as the "daily price limit", within which price fluctuations are limited in a single trading day.

In rare cases, the exchange may increase a stock's price limit. For example, if a stock does not see any trading volume for several consecutive days due to daily price limits after the release of significantly bullish or bearish news, the exchange may increase the price limit.

3.5 Trading restrictions imposed by the exchange

The exchange may use specific measures to restrict the trading of certain stocks that carry risks, including but not limited to imposing a trading halt, lowering the price limit, increasing margin requirements, prohibiting margin trading, etc. For details, please refer to the exchange announcements.

3.6 Trading Fees

For more details about trading fees, click JP stock fees (stocks, ETFs).

4. Order Types

Supported order types

• Limit Order

• Market Order

• Stop Limit Order

• Stop Order

• Limit-If-Touched Order

• Market-If-Touched Order

• Trailing Stop Limit Order

• Trailing Stop Order

Pre-set orders

You can place pre-set orders during non-trading hours. These orders will be queued for execution until the market opens.

To place pre-set orders for the afternoon session:

• Submit pre-set orders after the morning session closes at 10:30 Hong Kong Time.

To place pre-set orders for the next trading day:

• Submit pre-set orders after the current day's market closes at 14:30 Hong Kong Time.

5. Time-in-Force

Set time-in-force when placing an order. Time-in-force can be Day or GTC (Good-Til-Cancelled).

Day

A Day order is active until the market closes on the day it was placed, after which the order will be cancelled.

GTC

A GTC order remains active for 90 days until the order is fully filled, cancelled or experiences order failures. After 90 days, any unfilled GTC orders will be cancelled.

6. Settlement Rules

The Japanese stock market adopts a T+2 settlement cycle, meaning that Japanese stocks settle 2 business days after the transaction day (T+2).