Why invest in stock index?
You can buy or sell a single index trade without restrictions on stop and limit trading. Multiple stock indices establish stop loss, limit price and pending orders without a minimum distance limit.
Relative to stocks, the cost of engaging in futures trading is only commission. The transaction does not have to pay the stamp duty and the exchange fee, and the profits brought by the transaction do not have to pay the asset value-added tax.
HC provides diversified stock index products. In addition to the stock indexes in the financial sector, it also provides stock indexes that focus on high-tech, high-growth and non-financial stocks, or stock indexes that take into account expected dividend returns.
The price formed by the stock index can be recognized by all parties because there are many investors involved, and these investors have rich experiences, and the price thus formed directly represents the relationship between supply and demand. This produces a real, effective, and authoritative price.
MarginThe margin requirement is 2%, which is 1:50 leverage. Trading Hours (GMT-5): Based on the actual contract trading time, please refer to the specification of each instrument.
|Instrument||Quotation Currency||Min Trade Size (Lot)||Max Trade Size (Lot)||Floating Average Spread||Instrument||Quotation Currency||Min Trade Size (Lot)||Max Trade Size (Lot)||Floating Average Spread|
|HK50||HongKong Dollar||1||1000||350||UKOIL||US Dollar||0.01||1||120|
|NAS100||US Dollar||1||2000||70||SING||Singapor Dollar||–||–||Offer quotes only|
|SPA35||Euro||1||250||350||CHH||HongKong Dollar||–||–||Offer quotes only|
|SWI20||Swiss Franc||1||250||480||CHA50||US Dollar||–||–||Offer quotes only|
Sell Hang Seng Index (HK50)
One customer believes that the HSI (HK50) is overvalued and will soon decline.
Assuming that the HIS (HK50) is quoted at 28594.90/28590.90. The customer sold 5 lots of HK50 at 28590.90.
When the HK50 fell to 28490.90/28486.90, the customer decided to close the position.
|Sell 5 lots of HK50 with a price of 28590.90||28590.90/7.84*5=18,233 USD (Contract Value)|
|The margin requirement is 2%||18,233 *0.02= 364.66USD Initial margin (will change due to market price)|
|The commission is 0.0036% of the contract value (unilateral)||18,233*0.0036%*2=1.31 USD (It is assumed that the closing price is the same as the opening price, so the commission will change due to market price.)|
|Close 5 lots of HK50 (buy), the buying price is 28490.90||(28590.90-28490.90)/7.84*5-1.31 = 62.46 USD Profit|