What is HSI 50 Trade System? - Learn Trading HSI 50 Index

The HSI 50Index Trade Chart

The HSI 50 trade chart is displayed & illustrated and shown above. On the example above this is named as HSI50CASH. As a trader you want to find a broker that provides HSI 50 trade chart so that you can begin to trade it. The example above is of HSI 50 on MT4 Platform.

Indices Trade System for HSI 50 Index

HSI 50 tracks capitalization of the top 50 companies in Hong Kong. This index in general moves upward 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 stock index has wider swings in its trend movements.

Over a long period of time this stock index will generally move upward, as a trader you want to be biased & keep buying as the index moves upward.

A good Stock indices trade strategy would be to keep buying 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 & recession times, companies begin to report lower profits & lower business growth prospects. It is because to this reason that investors begin to sell stocks of companies reporting lower profits & therefore index tracking these particular stocks will also start to move downward.

Therefore, during these times index trends are likely to be moving downwards & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you're trading.

Contracts Specifications

Margin Requirement Per 1 Lot - HKD 450

Value per 1 Pips - HKD 1

NB: Even though general trend is generally upward, as a trader you've to factor in daily market volatility, on some days the index might oscillate or even retrace, index market retracement may also be significant at times & therefore as a trader you need to time your entry precisely using this trade strategy: Indices trade strategy & 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 index topics: What is money management and money management methods.