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Trading on the Hong Kong Futures Exchange

April 24, 2018 in

With the popularity of 24 hour trading access and growing access to Asia, traders are flocking to trade popular products on the Hong Kong Futures Exchange.  MarketDelta has long supported access to the HKFE, but more and more FCM’s (brokers) we support are now allowing access to trade HKFE products.

Another benefit of trading on the HKFE is the Exchange fees are not expensive. Only $15/month. If you only need to see last price and historical data but not trade HKFE products, then it is only $8/month.

Popular Symbols

SYMBOL DESCRIPTION ESTIMATED MARGIN
HSI Hang Seng Index 7,000
MHI Mini Hang Seng Index 1,400
HHI Hang Seng China Enterprises Index 2,850
MCH Mini Hang Seng China Enterprises Index 500

Contract Descriptions

The Hang Seng Index (HSI) is the benchmark of the Hong Kong stock market and is one of the best known indices in Asia and widely used by fund managers as their performance benchmark.  The HSI has the most trading volume of any contract on the HKFE and has averaged over 225,000 contracts per day during the last month.

Mini Hang Seng Index (MHI), is 1/5th the size of the HSI contract and on an average day trades about half the number of contacts as the HSI. As access broadens to these markets we expect to see the mini Hang Seng Index futures surge in volume.

The Hang Seng China Enterprises Index (HHI) is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited .  The HHI tracks the performance of major H-shares.  H-shares are Renminbi-denominated shares issued by People’s Republic of China issuers under Chinese law and listed on the Stock Exchange of Hong Kong.

The HHI is the 2nd most traded contract on the HKFE and has averaged over 150,000 contracts per day during the last month.

Mini Hang China Enterprises Index (MCH), is 1/5th the size of the HHI contract and on an average day trades about a quarter the number of contacts as the HHI. As access broadens to these markets we expect to see the mini Hang Seng China Enterprises Index futures increase in volume.

Sample Charts

As can be seen in the 2 candlestick charts below, the HSI and HHI are very highly correlated.

Here are some sample Footprint charts of various HKFE stock index futures contacts.

How To Trade

If subscribing to MarketDelta Desktop, email marketdelta [at] cqg.com and request they add “HKFE Level 2” to your subscription. Once added, you will be able to start viewing charts. After the data is enabled, contact your broker and have them enable your trading ID so you can trade HKFE products. You may need to specify which products so they can enable everything in the risk system.

Summary

So if you like to trade in the evening and want to trade a market that is trading its primary session and not an overnight session, the HKFE provides stock index futures with good liquidity and volatility.

Visit the HKFE website to learn more about their products.