HSI 50 Stock Index
HSI 50 tracks market capitalization of the top 50 companies which are displayed on Hong Kong Stock Market. The corporations displayed are also selected from the most profitable economic sectors in Hong Kong.
The HSI 50 Chart
The HSI 50 trade chart is displayed & shown & displayed above. On the example above this is named as HSI50CASH. As a trader you want to find a broker that provides HSI 50 chart so that you as a trader can begin to trade it. Stock indices example above is of HSI 50 on MT4 Software.
Other Information about HSI 50 Stock Index
Official Symbol - HSI:IND
The 50 components stocks that constitute the HSI 50 are chosen from 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 index represent a total of 60%market capitalization of all securities displayed in Hong Kong Stock Market.
Trade Strategy for HSI 50 Index
HSI 50 tracks capitalization of the top 50 companies in Hong Kong. This stock index generally move upwards over the long term but it's more volatile in its trend movements. When compared to other indices such as EURO STOXX & DAX 30 which have lower volatility in their trend movements, this index has wider swings in its trend movements.
Over a long period of time this stock index will generally move upwards, as a trader you want to be biased & keep buying as the stock index moves upwards.
A good indices trade strategy would be to buy the dips - although as a trader wanting to trade this stock index, be prepared for generally much wider swings when it comes to trading this 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 downward trends of the stock market stock index that you're trading.
Contracts Details
Margin Requirement for 1 Lot - HKD 450
Value per 1Pip - HKD 1
NB: Even though general trend is generally move upwards, as a trader you've 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 & hence as a trader you need to time your trade entry precisely using this strategy: trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About equity management principles in stock indexes trading topics: What is trading equity management & stock indexes trading equity management methods.
