Hang Seng Index (HSI) Futures Contract Specifications
Understanding the contract specifications for Hang Seng Index (HSI) futures (HSI) is essential for effective trading and risk management. This comprehensive guide covers all the critical details you need including tick values, contract sizes, trading hours, and position sizing strategies to help you trade Hang Seng Index (HSI) futures successfully.
What Are Hang Seng Index (HSI) Futures?
Hong Kong's benchmark equity index futures.
The Hang Seng Index (HSI) futures contract (HSI) is traded on major exchanges and provides traders with opportunities to profit from price movements in the stock indices market. Understanding the contract specifications is crucial for proper position sizing and risk management when trading these instruments.
Contract Size
Contract Size: HK$50 per index point
Example: This contract size allows traders to gain exposure to stock indices with controlled leverage and risk. Understanding the contract size is fundamental to calculating your position size and managing your trading capital effectively.
Tick Value and Increment
- Tick Size: 1 index point
- Tick Value: HK$50.00 per tick
- Point Value: HK$50.00 per point
These specifications make Hang Seng Index (HSI) futures suitable for traders seeking exposure to stock indices markets.
The tick value represents the minimum price fluctuation, which directly impacts your profit and loss calculations. Knowing these values is essential for setting stop losses and calculating risk per contract.
Trading Hours
Hang Seng Index (HSI) futures trade with extended hours, providing flexibility for traders in different time zones and allowing you to react to global market events.
- Exchange: CME
- Trading Hours: Monday-Friday, 09:15 - 16:00 HKT, 17:00 - 01:00 HKT (T+1 session)
- Time Zone: Hong Kong Time (HKT)
Trading Symbol
Platform Symbol: HSI
Margin Requirements
To trade Hang Seng Index (HSI) futures, you'll need to meet specific margin requirements. Margin requirements can vary based on your broker and account type.
Initial margin is the amount required to open a position, while maintenance margin is the minimum account balance needed to keep the position open. Check with your broker for current margin rates.
Why Trade Hang Seng Index (HSI) Futures?
- Exposure to the largest companies listed on the Hong Kong Stock Exchange
- Gateway to trading Chinese and Asian markets
- High liquidity and robust trading volumes
- Hedging tool for portfolios with Asian equity exposure
Risk Management for Hang Seng Index (HSI) Futures
Effective risk management is crucial when trading Hang Seng Index (HSI) futures. Here are key considerations:
- Position Sizing: Never risk more than 1-2% of your account on a single trade. Use our position size calculator to determine the appropriate number of contracts.
- Stop Loss Orders: Always use stop loss orders to limit potential losses. Calculate your stop loss distance based on the point value and tick size.
- Account Balance: Ensure you have adequate capital to meet margin requirements and handle drawdowns. Consider starting with micro contracts if you're new to futures trading.
Position Sizing for Hang Seng Index (HSI) Futures
Proper position sizing is crucial when trading Hang Seng Index (HSI) futures. Use our position size calculator to determine the optimal number of contracts based on your risk tolerance and account size.
Position Size Calculator Example
For Hang Seng Index (HSI) futures (HSI):
- Tick Size: 1 index point
- Tick Value: HK$50.00 per tick
- Point Value: HK$50.00 per point
If you want to risk $500 with a 10-point stop loss:
Risk per Contract = Stop Loss in Points × Point Value = 10 × HK50.00 per point = $NaN
Maximum Contracts = Risk Amount ÷ Risk per Contract = $500 ÷ $NaN = NaN contracts
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