HangSeng50 Stock Index
HangSeng50 Stock Index tracks market capitalization of top 50 companies which are listed on the Hong Kong Stock Market. The corporations displayed are also chosen from the most lucrative economic sectors in Hong Kong.
The HANG SENG 50 Trade Chart
The HANG SENG 50 trade chart is displayed & displayed above. On the above example this Stock Index is named HK 50CASH. As a trader you want to find a broker that provides HANG SENG 50 trade chart so that you as a trader can begin to trade it. Example displayed above is of HANG SENG 50 Stock Index on the MetaTrader 4 Forex & Platform.
Other Information about HANG SENG 50 Stock Index
Official Symbol - HSI:IND
The 50 components stocks which makes up HANG SENG 50 Stock Index are chosen from the top companies in Hong Kong. The 50 stocks constitute majority of the turnover volume in the Hong Kong Stock Market. The corporations displayed on this index represent a total of 60%market capitalization of all securities displayed in the Hong Kong Stock Market.
Strategy of Trading HANG SENG 50 Stock Index
HANG SENG 50 Stock Index tracks capitalization of top 50 companies in Hong Kong. This Stock Index generally upwards over long-term but it is more volatile in its trend movements. When compared to other indexes such as EURO STOXX & the DAX30 which have lower volatility in their trend movements, this stock index has wider swings in its trend movements.
Over a long period of time this index will generally move upwards, as a trader you want to be biased & keep buying as the stock index moves upwards.
A good indices trade strategy would be to buy the dips - although as a trader wanting to trade this index, be prepared for generally much wider swings when it comes to trading this stock index.
During Economic SlowDown and Recession
During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies which are reporting lower profits and therefore the Stock Indices tracking these specified stocks will also begin to move downwards.
Hence, during these times trends are likely to be heading downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you're trading.
Contracts and Specifications
Margin Required Per One Lot - HKD 450
Value per Pips - HKD 1
NB: Even though general trend is generally upwards, as a trader you have to consider & factor in the daily market volatility, on some of the days the Stock Indices may oscillate or even retrace & pullback, market pull back move may also be a significant one at times and therefore as a trader you need to time your trade entry precisely using this strategy: strategy and at same time use proper money management rules just in case there's more unexpected volatility in the market movement. About equity management methods in indices topics: What is index equity management and money management methods.
