HK Index, HSI, anyone interested?

wen · May 7, 2004

Quote from def:

Sorry, I can't/won't give advice as I'm licensed with the exchange/regulators but not as an advisor. I'll just be able to answer basic questions.

wow, give some tips also can't?

Cdntrader · May 7, 2004

Quote from def:

Sorry, I can't/won't give advice as I'm licensed with the exchange/regulators but not as an advisor. I'll just be able to answer basic questions.

Are those MHI Options liquid, tight bid/ask?

Prince Philip · May 7, 2004

Quote from def:

Liquidity is fine depending on how you trade. If you want to swing around size, it is best to work the orders in 10-25 lots at a time.

Fees: Can't speak for others, IB charges 27.5 HKD and lower per contract if you chose the unbundled rate. (each tick is 50 HKD).

Yes it does whip around a bit. I've been trading it as a market maker for almost 10 years. The index is not for everyone. You have to be your own judge in regards to your appetite for risk and abilities.

Thanks

BrianLA · May 7, 2004

.. with HSI or NKD? I find it hard for couple reasons:

1. Liquidity is tradeable but usually below average.

2. U.S. nightime trading's not available when intraday volatility in cash market is HUGE. I was up and down 4K last night and lucky to break even this morning.

3. Relatively high overnight margin and zero intraday margin.

4. No stop limit on the HSI??

Still, the futures over/under-react to U.S. markets alot, creating a follow through arb. opportunity.

rubbles88 · May 7, 2004

I agree liquidity is tradeable but for those who are used to trading ES and NQ, they might find hsi liquidity not to their liking.

I trade HSI because it is within my time zone. After first observing it for two months, one important rule I strictly follow is never take countertrend trades when it is trending. A good example of what catching a falling knife means.

wen · May 7, 2004

Quote from rubbles88:

I agree liquidity is tradeable but for those who are used to trading ES and NQ, they might find hsi liquidity not to their liking.

I trade HSI because it is within my time zone. After first observing it for two months, one important rule I strictly follow is never take countertrend trades when it is trending. A good example of what catching a falling knife means.

Yup, you are right. never fight the trend or you will get killed by it. Oil price jumped about to 40 / brl. Will it effect the HSI price, especially those which related to oil. Any possibility a bull this coming Monday?

rubbles88 · May 8, 2004

Quote from wen:

Oil price jumped about to 40 / brl. Will it effect the HSI price, especially those which related to oil. Any possibility a bull this coming Monday?

I don't predict what the market will do. Instead, I let the market show me what it wants to do and go with the flow.

However, I take into account what the U.S. markets did the previous day because more often than not it may influence HSI trading for the day, unless there's a significant local/regional event like the recent Taiwan election, SARS outbreak, local giant companies (like HSBC) earnings report, etc. JMHO.

But then again, the market's action will tell you what it wants to do.

wen · May 8, 2004

Quote from rubbles88:

I don't predict what the market will do. Instead, I let the market show me what it wants to do and go with the flow.

However, I take into account what the U.S. markets did the previous day because more often than not it may influence HSI trading for the day, unless there's a significant local/regional event like the recent Taiwan election, SARS outbreak, local giant companies (like HSBC) earnings report, etc. JMHO.

But then again, the market's action will tell you what it wants to do.

So how to see that?
Recent unemploment rate of U.S. has dropped for 2 months straight down. Think this will cause the Fed to add the rate pretty soon (many people see, it will be as soon as June). As the the strong growth of U.S. 's economy, think the demand of oil will be increase too. Yet the oil price has closed at US$40 / brl and the supply from Mid East is still an unknown. Will it damped the market on Monday?
Anyway, Mr. Rubbles, where are you come from? Nice to discuss with you. Mr. Mind too.