Alternative to Hang Seng Futures

Discussion in 'Trading' started by chucksil, Jun 15, 2013.

  1. chucksil


    For those who trade Hang Seng Futures, and find the volatility to be too much to handle, there is a great alternative - H-Shares futures on the same exchange. Symbol in IB is HHI.HK

    Same $50 HKD per point, same convenient hours, enough volatility to be useful - and one last advantage over Hang-Seng Futures - lower commissions!
  2. balance


    Thanks! This is quote helpful. Margin rate is also less than 1/2 of HSI.
  3. melo


    Here's what I see:

    Today: 30-day historical vol of HSI: 13.2%, HHI 20.3%

    31st Jul '13: HSI 30-day HV 19.3%, HHI 26.3%

    I.V. ATM Jan options exp, HSI: 13.6%, HHI: 22.8%

    HSI full contract value: ~ US$147,935
    HHI full contract value: ~ US$66,251
    Ratio of contract values HSI/HHI: 2.23

    HSI initial margin: ~ US$9213
    HHI initial margin: ~ US$4335
    Ratio of margin reqs HSI/HHI: 2.12

    Do I need to point out that this appears to contradict the OP's claims? I hope his strategy is sounder than his analysis.

    He is, though, correct about the commission being lower: by US$1.30.