HK50 Index
HK50 Index tracks the market capitalization of top 50 firms that are displayed & shown on the Hong Kong Stocks Exchange Market. The companies listed are also chosen from most profitable business sectors in Hong Kong.
HK 50 Chart
HK50 Indices trade chart is illustrated and illustrated above. On the above example this Stock Index is named HK50CASH. As a trader you want to find a broker that provides HK50 chart so that you as a trader can begin to trade it. The example That is shown/illustrated above is that of HK50 Stock Index on MT4 FX Trading Software.
Other Data about HK50 Stock Indices
Official Indices Symbol - HSI:IND
The 50 constituent stocks that makes up the HK50 Stock Indices are selected from top firms in Hong Kong. The 50 stocks make up most of the total trading turnover volume in the Hong Kong Stock Exchange Market. The corporations illustrated on this index represent a total of 60%market capitalization of all stocks shown in the Hong Kong Stock Exchange Market.
Stock Indices Trading System for Trading HK50 Index
HK50 Index tracks capitalization of top 50 firms in Hong Kong. This Index in general moves upwards over long-term but it is more volatile in its trend movement. When compared to other indexes such as EURO STOXX & DAX30 which have lower volatility in their market trend movements, this stock index has wider swings in its trend movement.
Over a long period of time this stock index will in general move upward, as a trader you want to be biased and keep on buying as the index heads and moves upward.
A good trading strategy for a trader to use when trading this stock index would be to keep buying and buy the dips - though as a trader wanting to trade this stock index, be prepared for generally much wider swings(more volatile swings) when it comes to this stock index.
During Economic Slow-Down and Recession
During the economic slowdown recession times, corporations start reporting lower earnings, lower profits and slower growth projection. It is due to this reason that investors start to sell stocks of companies that are announcing & reporting lower profits & hence Indices tracking these specified stocks will also start and begin to move downwards.
Therefore, during these times, market trends are much more likely to be moving downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downward trends of the index which you as a trader are trading.
Contract Specifications
Margin Requirement for 1 Lot - HKD 450
Value per Pips - HKD 1
Note: Even though general and overall trend is generally moves upwards, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices may move in a range or even retrace & retracement, the market retracement move may also be a significant one at times and hence as a trader you need to time your trade entry strictly using this trade strategy: Stock strategy & at same the time use proper & appropriate money management guidelines & methods just in case of unexpected volatility in the market. About indices equity and money management rules courses: What's Stock equity money management guidelines & techniques & indices equity management system/plan.
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