Hang Seng 50 Index
Hang Seng 50 tracks market capitalization of the top 50 companies that are displayed on Hong Kong Bourse. The firms displayed are also chosen from the most profitable economic sectors in the Hong Kong economy.
The HANG SENG 50 Trade Chart
The HANG SENG 50 chart is displayed & shown & displayed above. On the example above this is named as HK50CASH. As a trader you want to find a broker that provides HANG SENG 50 trade chart so that you as a trader can start to trade it. Example displayed above is of HANG SENG 50 on MT4 FX & Indices Platform.
Other Information about HANG SENG 50 Stock Index
Official Symbol - HSI:IND
The 50 component stocks that make up the HANG SENG 50 are selected from the best performance corporations in the Hong Kong economy. 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 Hong Kong Stock Market.
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The HANG SENG 50 which keeps track of the capitalization of the top 50 companies in Hong Kong. This stock index generally moves upward over the long term but it's more volatile in its trend movements. When compared to other stock indices such as EURO STOXX and DAX 30 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 begin to report lower profits & lower business growth prospects. It is due to this reason that traders begin to sell stocks of companies which arereporting lower profits & therefore stock index tracking these particular stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.
Contracts & Specifications
Margin Requirement for 1 Lot - HKD 450
Value per 1Pip - HKD 1
NB: Even though general trend is generally move upwards, as a stock index trader you have to factor in daily market volatility, on some days the stock index may oscillate or even retrace, market pull back might also be substantial at times and therefore as a trader you need to time your trade entry precisely using this trading strategy: Indices trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About money management principles in index topics: What is equity management and equity management strategies.
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