Last Updated on 4 August, 2022 by Samuelsson
Hang Seng Trading with HSI Futures tracks the Hang Seng Index (HSI) was introduced in 1986 by the Hong Kong Futures Exchange in response to increasing interest in the HSI.
Hong Kong is by many considered a beacon of capitalism. For example, Milton Freeman once described the country as one of the world’s greatest experiments in lassez-faire capitalism. Supporting this claim, since 1995, the Index of Economic Freedom has listed Hong Kong as one of the freest countries in the world, and the stock exchange of Hong Kong is now the seventh largest in the world. Together with free trade agreements and low taxes, Hong Kong has managed to attract the interest and money of many foreign investors and is regarded as a gateway to Asia.
Hang Seng Trading
Knowing all this, it’s not hard to understand that traders and investors choose to trade or invest in Hang Seng. Still, you might be asking yourself why you should trade Hang Seng futures in particular.
Here are some of the main benefits of trading futures (more later in the article about this also):
- Low Costs
- Long History
- High Leverage
- You May Go Short
Futures Contract (HSI) Specifications
Point Size: HK$50
Minimum Price Fluctuation: HK$50
8:45 am – 9:15 am Pre-Market Opening
9:15 am – 12:00 noon Trading Hours
1:00 pm – 4:30 pm Trading Hours
5:15 pm – 1:00 am
Expiration Months: March, June, September, and December
Rollover takes place on the second last business day of the contract month.
Mini Hang Seng Futures
In 2000, the Mini-Hang Seng Index Futures were introduced at one fifth the size of the original contract. The introduction of the mini contract enabled individuals with smaller capital access to the Hang Seng market through futures contracts.
Mini Futures Contract (MHI) Specifications
The contract specifications for the mini HSI futures contract is the same as for the regular contract, except for the following points:
- The regular contract has a point value of HK$50, whereas the mini futures contract has a point value of HK$10.
- The symbol name for the mini contract is MHI
Hang Seng Trading Strategies
Every market has its own special characteristics, but there are some traits that can be observed in many markets. One such logic that is prevalent among market indexes, is mean reversion. This holds true also for Hang Seng trading strategies.
Mean reversion trading strategies is the tendency of a market to revert to its mean, once it has made exaggerated moves in one direction. So, of the market has moved excessively to the downside, we may soon expect it to turn around. The mean reverting tendency of index markets is best used to go long by catching a falling market, due to the long term rising trend of the equity markets.
If you are interested in edges and trading strategies for the Hang Seng Market, have a look at our collection of edges and strategies for a wide range of markets!
New edges are released every month!
Does Hang Seng have Futures?
Does Hong Kong have futures?
What makes Hang Seng index move up and down in trading?
The HSI in Hong Kong reacts to both overnight from Wall Street and events taking place in the Asia-Pacific area approximately having the same opening hours. Since becoming a part of China the Shanghai and Shenzhen stock exchanges are having a growing impact on the daily performance of the Hong Hang Seng index. The index tends to move in tandem with the Shanghai Composite as some of its constituents are dual-listed on the mainland. The currency market connected to Hong Kong also moves the index. Macroeconomic events that affect Hong Kong and also China reflects on the HSI index.
Why should you trade Hong Kongs HSI Futures?
As with most types of futures, the Hang Seng Futures contract is a useful tool for traders who wish to hedge against price movements, as well as for those who want to adjust their portfolio allocation with the help of leverage. Here are some more advantages of the Hang Seng Futures Market:
- Low Costs – Since the Hang Seng Futures contract is traded on margin, the costs in relation to the exposure you get in the market are very low. Since futures work with leverage, the cost of commissions and fees relative to the market exposure becomes tiny
- Long History – The HSI is a market that has over 50 years of history, which has made the index popular among local as well as international investors and traders.
- High Leverage – With futures, you have inbuilt leverage, which means that you can profit greatly from even small moves in the market.
- You May Go Short – With futures contracts, you can sell short and profit from downward movements in the market.
What time does Hang Seng futures open?
|HSI Index Opening Hours||Day Session|
|Morning Session||Afternoon Session|
|Hang Seng Index Futures||9:15 a.m.* – 12:00 noon||1:00 p.m.* – 4:30 p.m.
(1:00 p.m.* – 4:00 p.m.)
What is the The Hang Seng Index (HSI)
Hang Seng Index market is a market index based on the 50 largest companies in Hong Kong and is one of the most well-known Asian indexes. Hang Seng is a market capitalization- weighted index, which means that the impact each stock has on the index is proportionate to the size of the stock. Thus, a smaller stock will not influence the index as much as a larger one.
Hang Seng is broken down into the following sectors/subindexes:
- Industry and commerce
Here you can find more information about the different sectors/subindexes of the Hang Seng as well as the list of stocks that currently are in the index.
What is the History of Hang Seng index?
The Hang Seng Index was introduced in 1963 in an attempt to create a “Dow Jones Index” for Hong Kong. The Index was compiled by Hang Seng Indexes Company, a subsidiary of Hang Seng Bank, which is still in charge of the index.
Today the Hang Seng Bank is the largest bank in Hong Kong by market capitalization and also manages other indexes such as:
- Hang Seng China Enterprises Index
- Hang Seng China H.financials Index
- Hang Seng China AH Index Series
- Hang Seng China A Industry Top Index
Where can I find Hang Seng Futures chart?
Here is a good chart of the Hang Seng (HSI) Futures trading chart.
Where to Find Hang Seng Futures and Index Price Data
Traders who wish to import data into their trading platform will have to sign up for an external data feed. E-signal is one data provider for the Hang Seng Futures markets.
What is HS50?
How do you trade on HSI?
Where To Trade Hang Seng Futures
You trade it HKEX.
Not all American brokers offer Asian or even European markets.
However, Interactive Brokers (IB) does, and Hang Seng futures can be traded through them. IB is known for its low commissions and is a reliable broker in the trading industry.
Is there a Hong Kong ETF?
You can find more info about futures market here.