HSI50 Index
The HSI50 Stock Index tracks market capitalization of top 50 companies which are displayed on Hong Kong Stock Market. The corporations displayed are also chosen from the most lucrative economic sectors in Hong Kong.
The HSI50 Chart
The HSI50 chart is displayed & shown above. On above example this Index is named HSI 50CASH. As a trader you want to find a broker that provides HSI50 Index trading chart so that you can start to trade it. Example displayed above is of HSI50 Stock Index on MT4 FX TradeTrading Software.
Other Details about HSI50 Indices
Index Symbol - HSI:IND
The 50 components stocks which constitute HSI50 Stock Index are chosen from the best performing corporations in Hong Kong. The 50 stocks constitute majority of the turnover volume in the Hong Kong Stock Market. The corporations displayed on this stock index represent a total of 60%market capitalization of all securities displayed in Hong Kong Stock Market.
Index Strategy for Trading HSI50 Index
The HSI50 Stock Index tracks capitalization of top 50 companies in Hong Kong. This Index generally moves upward over long term but it is more volatile in its trend movements. When compared to other stock indexes such as EURO STOXX & 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 and keep buying as the index moves upwards.
A good stock 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 Slow-Down & Recession
During economic slow-down and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits & therefore Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index that you are trading.
Contract Specifications
Margin Requirement Per Lot - HKD 450
Value per Pip - HKD 1
Note: Even though general trend is generally move upward, as a trader you've got to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the market retracement move might also be a substantial one at times and therefore as a trader you need to time your entry precisely when using this trading strategy: strategy and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About equity money management methods in indices lessons: What is index equity management & index equity management strategies.
