An Example: Calculating the Profit and Loss of HK50, Hang Seng Index


What is Hang Seng Index?

The Hang Seng Index is a freefloat-adjusted market-capitalization-weighted stock-market index in Hong Kong.

It is operating in HKD.

Example to calculate profit and loss when trading HK50

The screenshot below has been captured as an example to perform the calculation followed.

From the HK50 contract specifications, we know that:-

  • Contract size of HK50: 1 unit

From the open order displayed in the Terminal’s Trade tab, we know that:-

From the open order displayed in the Terminal’s Trade tab, we know that:-

  • Open price of the order: 23,475.00
  • Current market price: 23,537.00
  • Order size: Buy, 100.00 lots

Therefore the gross profit and loss:-

Gross profit
= (ClosePrice – OpenPrice) × Volume × ContractSize
= (23,537.00 – 23,475.00) × 100.00 × 1
= 6,200 HKD

It is unlikely that your trade account balance currency would be in HKD, hence conversion back to your trade account balance currency will be required.

  • USDHKD bid price: 7.75199

Hence, the conversion of gross profit from HKD to USD:-

Gross profit in USD
= ProfitHkd ÷ RateUsdHkd
= 6,200 ÷ 7.75199
≈ 799.79 USD

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