HSI50 Index

The HSI50 Stock Index tracks the market capitalization of top 50 corporations which are displayed on the Hong Kong Stock Market. The companies listed are also chosen from most profitable business sectors in Hong Kong.

Index Strategies for Trading HSI50 Indices

The HSI50 Chart

The HSI50 chart is displayed & shown above. On above example this Index is named HSI50CASH. As a trader you want to find a broker that provides HSI50 Index chart so that you as a trader can start to trade it. Example displayed and illustrated above is of HSI50 Stock Index on MetaTrader 4 Forex Platform.

Other Details about HSI50 Indices

Indices 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 make up the majority of turnover volume in Hong Kong Bourse. The companies displayed on this stock index represent a total of 60%market capitalization of all stocks displayed in the Hong Kong Stock Market.

Index Trading Strategy for Trading HSI50 Index

The HSI50 Stock Index tracks the capitalization of top 50 companies in Hong Kong. This Index in general moves upward over long term but it's 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 & moves upwards.

A good indices strategy would be to buy the dips - although 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 and begin reporting slower revenues, slower profits and lowers growth projections. It is due to and because of this reason that investors begin to sell stocks of companies which are posting lower profits & therefore Indices tracking these particular given stocks also will begin to go and head downwards.

Hence, during these times, trends are more likely to be moving down & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index which you as a trader are trading.

Contract Specifications

Margin Requirement for 1 Lot - HKD 450

Value per Pip - HKD 1

Note: Even though general and overall trend is generally move upwards, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices might move in a range or even retrace & retracement, the market correction/retracement move might also be a substantial one at times and therefore as the trader you need to time your trade entry strictly when using this trading strategy: strategy & at the same time use the proper/suitable money management guidelines/methods just in case there's unexpected volatility in the market movement. About equity money management methods/techniques in indices learning lessons: What is index equity management and index equity management methods/strategies.

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