HSI 50 Index
The HSI 50 Index tracks the market capitalization of the top 50 companies that are listed on the Hong Kong Stock Exchange Market. The companies listed are also selected from the most profitable economic sectors in Hong Kong.
The HSI 50 Index Chart
The HSI 50 Index chart is shown above. On the example above this Index is named as HSI50CASH. As a trader you want to find a broker that provides this The HSI 50 Index chart so that you can start to trade it. The stock example above is of HSI 50 Index on the MetaTrader 4 Forex and Index Trading Platform.
Other Information about HSI 50 Stock Index
Official Index Symbol – HSI:IND
The 50 component stocks that make up the HSI 50 Index are picked from the top companies in Hong Kong. The 50 stocks make up most of the trading turnover volume in the Hong Kong Stock Exchange Market. The companies listed on this index represent a total of 60 % market capitalization of all securities listed in the Hong Kong Stock Exchange Market.
Indices Trading Strategy for HSI 50 Index
The HSI 50 Index tracks the capitalization of the top 50 companies in Hong Kong. This index generally moves up over the long term but it is more volatile in its trend movements. When compared to other indices such as EURO STOXX and 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 index will generally move upwards, as a trader you want to be biased and keep buying as the index moves up.
A good strategy would be to keep buying the dips – although as a trader wanting to trade this index, be prepared for generally much wider swings when it comes to trading this index.
During Economic Slow Down and Recession
During economic slowdown and recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also start to move downwards.
Therefore, during these times stock index trends are likely to be heading downwards and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you are trading.
Margin Required Per 1 Lot - HKD 450
Value per 1 Pip - HKD 1
Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock index may oscillate or even retrace, the stock index market retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock indices trading topics: What is stock index trading money management and stock indices trading money management methods.