I traded HSI a few months ago. It is absolutely unpredictable and can move 50 -70 points with absolutely no big news. Also, I dont understand well the dynamics and psychology of Hong Kong market and economics to feel the HSI. It is however one of the few more volatile contracts at the present left.
the market opens at 9:45, shuts for lunch and re-opens at 2:30. Before the open you can place orders as either a limit order or an auction order. If you place an auction order, you will get first priority at the opening print. If there is a large imbalance and your auction order doesn't get filled, it will turn to a limit order on the auction price. One thing to be aware of is that you will not be able to change/modify or cancel order for 2 minutes before the actual open. the spread of HSI during the day is usually a few ticks but when it gaps or is moving can be much much wider. the bid/ask/last volume is there. We don't show total volume at this time but I've got those figures on my screens.
If you're non-US based you should take a look at the new H-share future mentioned above. The volatility of this index blows HSI away.
no time to explain in detail now but I don't think you understand correlation. here's a simple shot at it. if the US markets usually move in the same direction as the Japanese markets the previous day, then there would be a strong correlation.
Thanks for info on HHI. I were thinking it was very rare chance for Indexs to have any correlation when theres time interval. another Good indicator that might makes some difference to my trading, thanks I had never traded in market beside US, so realy had no idea on this
Found my problem. I was watching the march contracts. Looks like Jan is the front mth. Those HHI's look wild. fyi futuresource has delayed charts for HHI: http://legacy.futuresource.com/charts/charts.asp?sym=HHIF04
Tuesday December 9, 6:20 AM H-share futures make respectable debut By Jame DiBiasio Yesterday (Monday) saw the debut of the Hong Kong Futures Exchange's H-share futures contract, in which 1,367 December contracts switched hands. Brokers believe this is a respectable start and expect the contract to see volumes of 10-15% of the Hang Seng Index by the end of the week. Yesterday, 20,813 December futures contracts on the HSI traded. Hedge funds are likely to be the biggest players in the new market, which makes it easier and cheaper to short H shares than buying the basket of stocks. Although in 1998 the HKFE introduced a red-chip futures contract that was a flop (it remains listed but is not traded anymore), brokers have bigger expectations for the new Hang Seng China Enterprises (H shares) Index. John Chung Lee, head of research at KE Absolute in Hong Kong, explains the red-chip index was dominated by one stock, China Mobile, which accounted for 51% of the weighting. The fifth-biggest stock was Legend, with a mere 2.7% weighting. Fund managers could simply trade China Mobile and one or two other stocks and easily replicate the index. That's not the case with the H-share index, he says. The biggest constituent, PetroChina, comprises only 21% - a situation similar to HSBC's role in the HSI. Sinopec is the other giant, at 16.9%. The futures market for the Hang Seng is very liquid, because given the diverse constituency, it is an effective hedging tool. Brokers hope the new index to follow suit. Other big names among the 32 constituents include China Telecom (8.4%), Huaneng Power (7.4%) and Aluminum Corporation (4.6%). The value of one contract as of 28 November is HK$182.500 and, like the HSI Futures, available months are the spot month, the next calendar month and the quarters. Lee believes the concept of H shares is also easier to grasp. H shares are issued by mainland-based companies and enjoy equal legal value to A shares. Red chips are actually Hong Kong-incorporated companies with the majority of their business in China - a concept that today could apply to most "Hong Kong" companies, including many in the HSI. Brokers also hail the timing of the new product, which should capitalize on the booming IPO market for Chinese names. H-share companies have raised over HK$150 billion ($19.3 billion) via IPOs since 1993.
don't touch the HSI.. it's nuts.. you will get sucked dry by the electronic market makers(timberhill is one of them). how about a 100 point move in 10 seconds, try getting out then. happen just awhile ago. the liquidity is simply not there when it's moving, those damn market makers are fast
I was trading the Hang seng this morning. Here is the chart. You have to be quick, and sure sometimes you get caught. But it works both ways on average.