The Hang Seng index is one of Asia and the world’s most important stock market indices. Based in Hong Kong, the HK50 comprises 50 of the largest publicly traded companies on the Stock Exchange of Hong Kong.
The total market cap of companies that comprise the HK50 makes up for around 58% of the total value of all companies on the exchange.
It is widely used by fund managers and financial institutions to assess the performance and health of the stock market in Asia.
What Moves The Hang Seng Index?
The Hang Seng is a market capitalisation weighted index. That means that the more valuable a company is, the more effect it has on the entire index when the valuation of that company rises or falls.
Traders of the HK50 should pay attention to the Chinese, Hong Kong and Asian economies, and particular attention to the corporate environment in these regions (such as regulatory frameworks for financial institutions) in order to assess potential buy or sell positions on HK50.
Some of the most notable companies in the index include HSBC, Tencent and the casino & resort giant of Macau, Sands China.
How Can I Trade The Hang Seng Index?
The Hang Seng index is tradable under a single instrument on the TIOmarkets platforms. You can buy (go long) or sell (go short) on HK50 and many other indices.
What Are The Best Conditions For Trading The Hang Seng?
As we saw during the early stages of the covid-19 pandemic, indices across Asia and the world can be prone to large swings up or down based on economic turmoil and recovery.
Trade protection: Using risk management tools like TIOshield, which lets you cancel any trade within 1 hour to recoup your money, can help protect your trades against sudden breaking news that may swing the markets one way or another.
TIOshield is only available at TIOmarkets.
Execution speeds: Slow order processing time can lead to a big difference between the price you see when you click to open a trade, and the actual price your order is opened at. This difference between prices is called “slippage”.
At TIOmarkets, we have some of the fastest execution speeds you can find, resulting in minimal slippage and more orders filled at the price you click.
Leverage: Normally, a large amount of starting capital is required to invest seriously in stocks and indices, because only a small amount of stocks is not likely to yield the kind of results most traders are seeking.
High leverage can greatly increase both the risk to your investment and the potential returns.
If you are comfortable with a high level of risk in return for higher potential gains, you may want to seek a leverage ratio that is commensurate to your investment goals.