HSI 50 Index
HSI 50 tracks the market capitalization of the top 50 corporations which are displayed on the Hong Kong Stock Market. The companies displayed are also chosen and selected from the most profitable economic sectors in the Hong Kong economy.
The HSI 50 Chart
The HSI 50 trade chart is displayed and illustrated & shown & displayed above. On the example laid-out above this is referred to as as HSI50CASH. As a trader you want to find a broker that provides HSI 50 chart so that as you as a trader can start to trade it. Stock indices illustration put on display above is of HSI 50 on MetaTrader 4 Software Platform.
Other Information about HSI 50 Index
Official Symbol - HSI:IND
The 50 component stocks which constitute the HSI 50 are chosen from best performing firms in Hong Kong. The 50 stocks constitute the majority of turnover volume in the Hong Kong Stock Market. The companies displayed on this stock index represent a total of 60%market capitalization of all the securities displayed and illustrated in the Hong Kong Stock Market.
Trade Strategy for HSI 50 Index
HSI50 that keeps track of the market capitalization of top 50 corporations in the Hong Kong economy. This stock index generally move upward over the long-term but it's more volatile in its trend movements. When compared to other indices like EURO STOXX and DAX30 indices which have lower volatility in their trend movements, this index has wider and more volatile swings in its trend movements.
Over a long period of time this stock index will in general move upward, as a trader you want to be biased & keep on buying as the index moves & heads upwards.
A good stock indices trading strategy would be to buy the market dips - although as a trader wanting to trade this stock index, be prepared for much wider swings when it comes to this index.
During Economic Slow-Down and Recession
During economic slow down & recession periods, firms begin reporting lower earnings, lower profits & lowers growth prospects. It is due to this reason that traders begin to sell stocks of companies which are reporting & recording lower profits & therefore stock index monitoring these specified stocks will also start to go & move downward.
Hence, during these market times, the market trends are likely to be heading down and as a trader you should also try & adjust your strategy accordingly to suit the ruling downwards trends of the stock index that you are trading.
Contracts Details
Margin Requirement for 1 Lot - HKD 450
Value per 1 Pip(Point) - HKD 1
NB: Even though general trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some days the index may oscillate or even retrace, market pull back might also be substantial sometimes & hence as the trader you need to time your entry precisely using this trading strategy: trading strategy and at the same time use proper & suitable money management guidelines/techniques just in case of unexpected volatility in the market. About equity management guidelines & principles in indexes trading topics: What is trading equity management and stock indexes trading equity management strategies/methods.
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