Quick Guide to Spread Betting on the Hong Kong Stock Market

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Financial Spreads: Spread Betting and CFD Trading

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Where Can I Spread Bet on the Hong Kong 50?

FinancialSpreads provides clients with a wide variety of index markets like the Hong Kong 50 but also the UK 100, Wall St and Euro Stocks 50.

Where Can I Access Live Hong Kong 50 Prices?

With FinancialSpreads you can access numerous live spread betting and CFD trading prices including markets like the Hong Kong 50 and a large variety of other stock market indices, currencies, commodities and equities prices.

Where Can I Get Live Hong Kong 50 Charts?

When trading with a Financial Spreads account investors are able to access real time charts for the Hong Kong 50 and more than a thousand other financial spread betting and CFD markets.

The charts come with a variety of advanced options:
Sample stock market spread trading chart:

Stock Market Index Spread Betting Charts



A Guide to Spread Betting on the Hong Kong 50

As an example, let's assume that you go on the FinancialSpreads site and the trading platform is showing a quote of:

  Hong Kong 50 Rolling Cash Sell

24722.0
Buy

24730.0


Here is a guide to how the market works.

The MarketHong Kong 50 Rolling Cash
The Spread Betting Quote24722 - 24730
What This MeansNow you can speculate on the Hong Kong 50 Rolling Cash market to push:

  Spread Betting Higher than 24730, or
  Spread Betting Lower than 24722

This is a Rolling trade and so there is no final closing date. If you haven't closed your trade and the session ends then your position will roll over to the next trading session.

Note: if a trade does roll over then you will normally either receive or pay a small fee for overnight financing depending on whether you are betting on the market to move higher or lower. For further details see Rolling Spread Betting.
Trading UnitsSpread betting trades on the Hong Kong 50 market are made in £x per point.

Where a point is 1 point of the stock market index's price movement.

E.g. if the Hong Kong 50 moves 40 points then you would lose/win 40 times your stake.
Stake per UnitYou work out how much you want to risk per point, e.g. £2 per point, £8 per point, £10 per point etc.
Brief ExampleAs an example, if you have a stake of £2 per point and the Hong Kong 50 changes by 26 points, you would win / lose £2 per point x 26 points = £52.


Worked Trading Example - Taking a Bullish View of the Hong Kong 50

Financial spread betting on the index to go up in value

You Choose Whether to Buy or Sell The Hong Kong 50 moving:

  Spread Betting Higher than 24730? or
  Spread Betting Lower than 24722?

Let's Say You Buy   Spread Betting Higher than 24730
You Select How Much to Risk, Let's Assume You Choose £1 per point
What Happens Next?
  • You make a gain of £1 for each point the Hong Kong 50 pushes above 24730
  • You lose £1 for every point the Hong Kong 50 falls below 24730
When You Go Long With a Spread Bet Your Profits/Losses = (Settlement Price - Opening Price) x stake
 
Trading Example 1
The Hong Kong 50 climbs and the market is revised to 24903.1 - 24911.1. Therefore you'd see:   24903.1   24911.1
Close and Take a Profit? At this point, you can choose to let your bet run or close it, i.e. close your spread bet to lock in your profit. For this example, you opt to settle your position by selling the market at 24903.1.
Your Profits/Losses = (Settlement Price - Opening Price) x stake
(24903.1 - 24730) x £1 per point
173.1 points x £1 per point
Your Profits/Losses = £173.10 profit
 
Trading Example 2
The Hong Kong 50 drops and the spread trading market is revised and set at 24575.4 - 24583.4. So you'd see this on Financial Spreads:   24575.4   24583.4
Close and Limit Your Loss? At this point, you may opt to leave your spread bet open or close it, i.e. close your trade to limit your loss. In this case you choose to close your position and sell the market at 24575.4.
Your Profits/Losses = (Settlement Price - Opening Price) x stake
(24575.4 - 24730) x £1 per point
-154.6 points x £1 per point
Your Profits/Losses = -£154.60 loss


Trading Example - Selling the Hong Kong 50

Spread betting on the index to decrease in value

You Now Select Whether to Buy or Sell The Hong Kong 50 to move:

  Spread Betting Higher than 24730? or
  Spread Betting Lower than 24722?

Let's Assume You Go Short   Spread Betting Lower than 24722
You Decide Your Stake, Let's Assume You Opt For £2 per point
So What Happens Now?
  • You lose £2 for every point the Hong Kong 50 moves above 24722
  • You make a gain of £2 for every point the Hong Kong 50 goes lower than 24722
If You Are Betting on a Market to Fall Your Profits/Losses = (Opening Price - Settlement Price) x stake
 
Trading Example 3
The Hong Kong 50 decreases and the spread betting market is revised and moved to 24636.1 - 24644.1. Therefore you would see this on Financial Spreads:   24636.1   24644.1
Close for a Profit? At this point, you could choose to keep your position open or close it to take your profit. In this case you choose to settle your trade and buy the market at 24644.1.
Your Profits/Losses = (Opening Price - Settlement Price) x stake
(24722 - 24644.1) x £2 per point
77.9 points x £2 per point
Your Profits/Losses = £155.80 profit
 
Trading Example 4
The Hong Kong 50 goes higher and the financial spread betting market adjusts and moves to 24783.5 - 24791.5. I.e. the market moves to:   24783.5   24791.5
Time to Limit the Loss?You may choose to let your spread bet run or close it in order to limit your loss. In this case you decide to settle your bet by buying the market at 24791.5.
Your Profits/Losses = (Opening Price - Settlement Price) x stake
(24722 - 24791.5) x £2 per point
-69.5 points x £2 per point
Your Profits/Losses = -£139.00 loss


Spread Betting on Hong Kong Futures

We also offer a Hong Kong 'Futures' market.

Let's imagine our live price is:

  Hong Kong 50 February Futures Sell

24721.0
Buy

24737.0


Here is a guide to how the market works.

The Spread Betting Market:Hong Kong 50 February Futures
Price (Spread):24721.0 - 24737.0
How the Spread Works:Now you can trade on the Hong Kong 50 futures market to close:

  Spread Betting Higher than 24737.0, or
  Spread Betting Lower than 24721.0

On the settlement date for the February market, 27 February 2015. This is a Futures market meaning that your bet will automatically close on the settlement date. Having said that, you can normally also close your trade, during market hours, prior to the expiry date of the contract.

Also consider that you don't pay any overnight financing fees on these futures contracts.
Units (Points) Traded:Spread betting trades on the Hong Kong 50 futures market are made in £x per point.

Where a point is 1 point of the stock market index's price movement.

E.g. if the Hong Kong 50 moves by 45 points then you would lose/win 45 multiples of your stake.
Trade Size:You decide how much you want to risk per point, e.g. £2 per point, £8 per point, £15 per point etc.
Staking Example:For example, if you have a stake of £2 per point and the Hong Kong 50 changes by 20 points, you would lose / win £2 per point x 20 points = £40.


Worked Spread Betting Example - Buying Hong Kong Futures

Financial spread betting on the index to rise

You Consider Whether to Buy or Sell: The Hong Kong 50 futures market to settle:

  Spread Betting Higher than 24737.0? or
  Spread Betting Lower than 24721.0?

When the market expires, 27 February 2015.

You Might Decide to Go Long:   Spread Betting Higher than 24737.0
You Select How Much to Risk, Let's Say You Select: £1 per point
So What Now?
  • You win £1 for each point the Hong Kong 50 pushes above 24737.0
  • You lose £1 for every point the Hong Kong 50 falls lower than 24737.0
If You Buy a Market Your P/L = (Settlement Price - Opening Price) x stake
 
Scenario 1
The Hong Kong 50 increases and the financial spread betting market is adjusted to 24835.9 - 24851.9. Therefore you'd see:   24835.9   24851.9
Take a Profit? At this point, you could decide to keep your trade open or close it, i.e. close your position to lock in a profit. For this example, you decide to settle your bet by selling at 24835.9.
Your P/L = (Settlement Price - Opening Price) x stake
(24835.9 - 24737.0) x £1 per point
98.9 points x £1 per point
Your P/L = £98.90 profit
 
Scenario 2
The Hong Kong 50 decreases.
Time to Limit the Loss? You can choose to leave your trade open, letting it run to the settlement date, or close it to limit your loss. For this example, you decide to run your position until expiry. The futures market closes at 24619.5.
Your P/L = (Settlement Price - Opening Price) x stake
(24619.5 - 24737.0) x £1 per point
-117.5 points x £1 per point
Your P/L = -£117.50 loss


Worked Spread Betting Example - Shorting Hong Kong Futures

Financial spread trading on the index to go down in value

You Now Select Whether to Buy or Sell: The Hong Kong 50 settling:

  Spread Betting Higher than 24737.0? or
  Spread Betting Lower than 24721.0?

When the market closes, 27 February 2015.

You Might Decide to Go Short:   Spread Betting Lower than 24721.0
You Select Your Stake, Let's Say You Choose: £2 per point
So Now What Happens?
  • You lose £2 for every point the Hong Kong 50 rises higher than 24721.0
  • You win £2 for every point the Hong Kong 50 moves lower than 24721.0
If You Sell a Market Your P/L = (Opening Price - Settlement Price) x stake
 
Scenario 3
The Hong Kong 50 futures market falls
Lock in Your Profit? You may decide to keep your trade open, letting it run to the settlement date, or close it, i.e. close your spread bet to lock in a profit. In this instance, you decide to let the trade run until expiry. The market finally closes at 24641.9.
Your P/L = (Opening Price - Settlement Price) x stake
(24721.0 - 24641.9) x £2 per point
79.1 points x £2 per point
Your P/L = £158.20 profit
 
Scenario 4
The Hong Kong 50 climbs and the spread trading market changes to 24798.9 - 24814.9, i.e. you'd see:   24798.9   24814.9
Restrict Your Loss?You can opt to let your position run to the settlement date or close it, i.e. close your position and restrict your loss. In this example you opt to settle your trade and buy the market at 24814.9.
Your P/L = (Opening Price - Settlement Price) x stake
(24721.0 - 24814.9) x £2 per point
-93.9 points x £2 per point
Your P/L = -£187.80 loss

Where Can I Practice Financial Spread Betting on the Hong Kong 50?

FinancialSpreads provides investors with the option of trying new ideas by using a Demo Account on spread trading and CFD markets like the Hong Kong 50.

The Financial Spreads Demo Account offers more than the market above; investors can also get trading experience using an array of forex pairs, stocks and shares, commodity markets and indices.

Open a Free Financial Spreads Demo Account


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+44 (0) 203 301 0483
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