Hong Kong 40 Spread Betting

Where to Spread Bet on the Hong Kong 40

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A Guide to Spread Betting on the Hong Kong 40

Spread Trading Market	Hong Kong 40 Rolling Daily
Spread	19969 - 19989
How the Trade Works	Now you can speculate on the Hong Kong 40 Rolling Daily market to move:   Higher than 19989, or   Lower than 19969 This is a Rolling Daily trade and so there is no settlement date for this trade. If you don't close your position and the session ends then your trade will roll over into the next trading day. If the trade is rolled over then you will normally either be charged or receive interest for overnight financing depending on whether you are betting on the market to go up or down. For more details also see Rolling Spread Bets.
Trading Units	Spread bets on the Hong Kong 40 market are made in £x per point. Where a point is 1 point of the stock market index's price movement. E.g. if the Hong Kong 40 moves by 50 points then you would lose/win 50 multiples of your stake.
Stake per Unit	You work out how much you are going to risk per point, e.g. £1 per point, £3 per point, £10 per point etc.
Short Staking Example	With that in mind, if you have a stake of £3 per point and the Hong Kong 40 changes by 24 points, you would lose or win £3 per point x 24 points = £72.

Trading Example | Buying the Hong Kong 40

You Now Choose Whether to Go Long or Short	The Hong Kong 40 moving:   Higher than 19989? or   Lower than 19969?
Let’s Say You Decide to Go Long	Higher than 19989
You Select Your Stake, Let's Assume You Opt For	£2 per point
What Happens Now?	You will win £2 for each point the Hong Kong 40 goes higher than 19989 You make a loss of £2 for every point the Hong Kong 40 moves lower than 19989
When Spread Betting on a Market to Increase Your Profits/Losses =	(Final Level - Initial Level) x stake per point
Trading Situation 1	The Hong Kong 40 moves higher and the market is adjusted to 20049 - 20069.
Close and Take a Profit?	You can decide to leave your bet open or close it to lock in your profit. For this example, you decide to settle your position and sell the market at 20049.
Your Profits/Losses =	(Final Level - Initial Level) x stake per point
	(20049 - 19989) x £2 per point
	60 points x £2 per point
Your Profits/Losses =	£120 profit
Trading Situation 2	The Hong Kong 40 decreases and the shares spread betting market is revised to 19919 - 19939.
Limit the Loss?	At this point, you may choose to leave your spread bet open or close it to restrict your loss. For this example, you choose to settle your position by selling at 19919.
Your Profits/Losses =	(Final Level - Initial Level) x stake per point
	(19919 - 19989) x £2 per point
	-70 points x £2 per point
Your Profits/Losses =	-£140 loss

Fully Worked Trading Example | Selling the Hong Kong 40

You Select Whether to Buy or Sell	The Hong Kong 40 to push:   Higher than 19989? or   Lower than 19969?
Let's Assume You Sell	Lower than 19969
You Choose Your Stake, Opting for	£1 per point
What Now?	You make a loss of £1 for every point the Hong Kong 40 moves higher than 19969 You will win £1 for every point the Hong Kong 40 pushes lower than 19969
When Spread Betting on a Market to Fall Your Profits/Losses =	(Initial Level - Final Level) x stake per point
Trading Situation 3	The Hong Kong 40 pushes lower and the spread trading market is adjusted and moved to 19853 - 19873.
Time to Take a Profit?	You could decide to let your trade run or close it and lock in your profit. For this example, you opt to close your trade and buy the market at 19873.
Your Profits/Losses =	(Initial Level - Final Level) x stake per point
	(19969 - 19873) x £1 per point
	96 points x £1 per point
Your Profits/Losses =	£96 profit
Trading Situation 4	The Hong Kong 40 goes higher and the financial spread betting market moves to 20061 - 20081.
Time to Limit the Loss?	At this point, you could decide to keep your bet open or close it, i.e. close your spread bet to restrict your losses. In this example you decide to close your trade and buy at 20081.
Your Profits/Losses =	(Initial Level - Final Level) x stake per point
	(19969 - 20081) x £1 per point
	-112 points x £1 per point
Your Profits/Losses =	-£112 loss

Hong Kong 40 Notes:

• Financial spread betting quote as per CapitalSpreads: 9 November 2011
  
  
• Most spread betting companies will also give you the option of financial spread betting on the Hong Kong 40 in euros per point and US dollars per point
  
  
• Online spread betting also allows you to gain access to a large variety of other financial markets. Also see:
  
  
  • Financial Spread Betting on Stock Market Indices
  • Financial Spread Betting on FX
  • Commodity Financial Spread Betting

Demo Accounts for Spread Betting on the Hong Kong 40

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