How to trade and invest the HS50

The Hang Seng 50 (HS50) is a measure of the performance of the 50 largest companies on the Hong Kong Stock Exchange (SEHK). Here we explain how to trade the HS50 and cover some trading tips and strategies. You can get involved in the HS50 by trading or investing foreign exchange market today. Your choice may depend on your personal preferences and risk tolerance or the index's trading hours.

Trading in the HS50

If you want to directly hear the Hang Seng 50 price trend, it is better to trade than invest. You can trade the index via CFDs, allowing you to speculate on rising or falling price movements. To open a position, you need a deposit, the so-called margin. This deposit gives you the full value of the transaction, which means that your profits and losses increase.

Investment in the HS50

If you want to invest in the Hang Seng 50, you can buy shares in ETFs that track the price of the index or the shares of individual components. You can make a profit by selling your assets after the share price rises, and you could also receive dividend payments if they occur. Investments require the full value of the position upfront when you take possession of the underlying assets forex trading platform in India. With IG, you cannot invest directly in stocks or ETFs. However, you can trade them via CFDs.

Cash indices

When you choose to trade indices spot, you are trading at the current underlying market price, known as the spot price about  foreign exchange market. Cash indices offer tighter spreads than other markets, which is why they are often preferred by short-term traders. However, if these traders do not close their positions before the end of the trading day, they will be charged an overnight financing fee.


Futures contracts

By trading HS50 futures contracts, you agree to trade the index at a specified price on a fixed date in the future. Long-term traders prefer index futures because they can hold positions without incurring overnight funding costs, as these are included in the spread. Index futures are always cash-settled, as no physical underlying needs to be delivered.



Stock CFDs

You can take long or short positions on the share price of any component of the HS50 without owning it. Not only does this have tax advantages over traditional buy-and-hold investments1, but it also means that you can benefit from both falling and rising markets. If you think the stock price will go up, go long (buy), and if you think it will go down, go short (sell). You will make a profit if the market moves in your favor best brokers in India for forex. You can benefit from the short-term price movements of the 50 companies in the Hang Seng 50 by trading an ETF that mimics the composition of the index. ETFs are traded in the same way as stocks, but they follow an underlying asset or a basket of assets. When you trade ETF HS50 with CFDs, you can get more exposure because you trade on leverage.

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