"Sir, are you looking for margin financing?"
A tall, beautiful saleswoman smiled and asked Su Yi.
Su Yi nodded, stated his requirements, and finally asked,
"If I trade 'CSI 500 Index' stock index futures contracts through your company's platform, can I also get margin financing, right?"
The saleswoman nodded and said,
"However, since stock index futures contracts are margin trading, they inherently come with high leverage. Therefore, our company can only provide a maximum of 5 times leverage for customers trading stock index futures contracts with margin financing.
Moreover, the risk of trading stock index futures contracts is extremely high.
After obtaining margin financing, clients can only conduct trading operations in our company's offline trading room.
Because previously, some clients experienced forced liquidation when trading stock index futures contracts with margin financing, causing some losses to our company, we hope you can understand the requirement that 'trading operations must be conducted in our company's offline trading room.'
Of course, the offline trading rooms we prepare for our clients.
Are equipped with the best computer configurations and fiber optic broadband, which can ensure that you will not experience any network delays or failures during your trading operations.
At the same time, the company also provides top-grade tea and fruits for clients in the trading room.
We also offer free lunch service."
"What is the minimum margin financing amount and interest rate?"
Su Yi asked, even though he had already gained some understanding before coming.
The saleswoman continued to reply,
"For stock index futures contracts, the minimum margin financing amount is 100,000, and the interest is a daily rate of 1%. If it's for stock trading, the minimum margin financing amount is 50,000, and the interest is slightly lower, a daily rate of 0.6%."
Su Yi calculated based on the saleswoman's answer.
If he were to use his 150,000 yuan to get 5 times leverage margin financing.
That means borrowing 750,000 yuan from the other institution, and the daily interest would be 7,500 yuan, which is equivalent to almost half a year's rent for him.
It is indeed quite steep, no wonder the other party arranges offline trading rooms for clients and also provides top-grade tea, fruits, and free lunch.
"Alright!" Su Yi nodded, "If I handle the business today, I can trade today, right?"
"Yes, sir,"
The saleswoman replied affirmatively.
Subsequently, the other party was very happy to meticulously guide Su Yi through the margin financing business.
After completing the business.
Su Yi transferred the funds to the designated account for freezing.
Then, within a few minutes, he obtained the account, which the saleswoman had applied for from the business manager, capable of trading 'CSI 500 Index' stock index futures main contracts.
The account already contained a total of 900,000 yuan, including his 150,000 yuan principal.
"Sir, are you going to trade now?"
The saleswoman asked after Su Yi received the account.
Su Yi nodded.
The saleswoman acknowledged, immediately got up, and led him to the company's offline trading room, saying,
"Your account has already set a warning line and a mandatory stop-loss line, please feel free to trade. And I will be right here with you. If you have any other needs, just let me know anytime."
Although the funds Su Yi obtained through margin financing were not a lot.
By securing this single deal, she could still receive a considerable commission from the company.
Therefore, she was able to be so attentive to Su Yi; after all, Su Yi at this moment could be considered her benefactor.
"Okay,"
Su Yi nodded in response, then skillfully opened the computer and logged into the trading software.
By the time he successfully logged into the account on the trading software.
At this time, market trading hours had already entered 10:22 AM.
After the Shanghai Composite Index hit a new high during the session, it was in a brief pullback phase, while the 'CSI 500 Index' remained range-bound, fluctuating between 11460 and 11490 points.
It seemed both major indices were accumulating strength for a renewed upward assault.
Su Yi glanced at the performance of the Shanghai Composite Index and the CSI 500 Index, but did not make any operations.
He merely asked the beautiful saleswoman accompanying him for a cup of tea and a few plates of fruit.
The saleswoman hadn't expected him to be so eager when handling the business just now, but now that he was actually sitting in front of the computer and logged into the trading account, he wasn't doing anything.
However, despite her slight surprise, she didn't ask.
She nodded and, following Su Yi's instructions, brewed him a cup of tea and brought him a few plates of fruit.
As time moved to 11 AM, the market quotations on the computer screen in front of Su Yi continuously fluctuated intensely, yet he still made no operations.
Instead, he ate fruit and chatted occasionally with the beautiful saleswoman behind him.
At 11:30 AM, when the two markets closed for the midday break.
Su Yi still did not make any operations.
During lunch, he tried the free lunch the saleswoman mentioned and thought it was quite good.
In the afternoon, the market reopened, and Su Yi continued to sit in front of the computer watching the market, yet still without any operations.
It wasn't until 2 PM, when even the saleswoman behind him thought he was wasting time and needlessly incurring high margin financing interest.
Su Yi's gaze, fixed on the market screens of both exchanges, suddenly became extremely sharp.
At the same time, his fingers tapped rapidly on the keyboard.
As the Shanghai Composite Index surged upward, rapidly breaking through to the 5178 point level, and the 'CSI 500 Index' simultaneously refreshed its intraday high to the 11600 point level, he immediately entered all positions.
With 900,000 yuan, at the 11600 point level, he shorted 4 lots of CSI 500 Index futures main contracts.
And according to the stock index futures trading rules of the exchange.
These 4 lots of contracts collectively consumed 742,400 yuan.
"Shorting?"
After Su Yi's order was executed, the saleswoman watching behind him was completely stunned and couldn't help but remind him,
"Sir, this is a bull market!"
"Miss Chen, I know this is a bull market,"
Su Yi responded,
"Does your institution not allow shorting of stock index futures main contracts in a bull market when providing margin financing to clients?"
"No, it doesn't," Saleswoman Chen An'ya replied,
"But isn't trading against the trend very easy to lose money?"
Su Yi was slightly surprised by the latter part of her sentence and asked,
"You understand trading?"
Chen An'ya shook her head and replied,
"That's what clients who frequently trade at our company say. I don't understand much myself. I also applied for a trader position at a fund company before, but unfortunately, I couldn't pass the live trading assessment."
In the brief moment they were speaking.
In just two minutes, the CSI 500 Index had surged to 11615 points, refreshing its intraday gain to 2.15%.
And Su Yi's holding account.
Within these two minutes, based on the CSI 500 Index fluctuating one point being a 200 yuan profit or loss standard.
The 4 lots of contracts had already accumulated losses of around 12,000 yuan.
If this rate of loss continued, perhaps even before the market closed at 3 PM, the account he was operating would hit the warning line requiring additional margin, or even the forced liquidation line.
(End of this chapter)
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