HangSeng50 Stock Index
HangSeng50 Stock Index tracks market capitalization of top 50 companies that are listed on the Hong Kong Stocks Market. The companies shown are also chosen from the most lucrative economic sectors in Hong Kong.
The HANG SENG 50 Stock Index Trade Chart
The HANG SENG 50 Stock Index trade chart is shown and illustrated above. On the above example this Stock Index is named HK 50CASH. As a trader you want to find a broker that provides HANG SENG 50 Stock Index trade chart so that you can start to trade it. The Stock Indices example above is of HANG SENG 50 Stock Index on the MetaTrader 4 Forex & Indices Trading Software.
Other Information about HANG SENG 50 Stock Index
Official Symbol - HSI:IND
The 50 components stocks that makes up HANG SENG 50 Stock 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 Stocks Market. The companies shown on this index represent a total of 60 % market capitalization of all securities shown in the Hong Kong Stocks Market.
Strategy for Trading HANG SENG 50 Stock Index
HANG SENG 50 Stock Index tracks capitalization of top 50 companies in Hong Kong. This Stock Index in general moves upward over longterm but it is more volatile in its trend movements. When compared to other indexes such as EURO STOXX & the DAX30 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 stock index moves upward.
A good indices trade 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 stock index.
During Economic SlowDown and Recession
During economic slowdown and recession times, companies begin to report lower profits & lower growth prospect. It is because to this reason that traders begin to sell stocks of companiesthat are reporting lower profits & therefore the Stock Indices tracking these specified stocks will also begin to move downwards.
Therefore, during these times Stock Index trends are likely to be heading downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you are trading.
Contracts & Specifications
Margin Required Per Lot - HKD 450
Value per Pips - HKD 1
NB: Even though general trend is generally upward, as a trader you have to consider & factor in the daily market volatility, on some of the days the Stock Indices might move in a range or even retrace and pullback, Stock Indices market retracement move may also be a significant one at times & therefore as a trader you need to time your trade entry precisely using this trade strategy: Stock Index trading strategy & at same time use proper money management guidelines just in case there is more unexpected volatility in the market trend. About money management methods in indices trading topics: What is Stock Index money management & Stock Indices money management methods.
