"Boss, the market is about to close. How about we hedge?"
"Do as I say."
Upon hearing this, Chen Dong shook his head.
Logically, Henry's actions were correct.
In the futures market, you can buy long or short, and you can make money or lose money in either way.
on the contrary.
This two-way market allows for hedging to lock in profits or losses within a certain range.
It's like having 50 short positions and 50 long positions at the same time.
Regardless of whether the stock index futures rise or fall on that day.
The contracts you have can all offset each other, so you neither make a profit nor lose money.
This is what is known as hedging, also called locking in a position, which is one of the safest ways to avoid risk.
Even the most skilled trader cannot predict the market movements of the next trading day.
This is also one of the most commonly used methods in stock index futures.
Clearly, this model is useless to Chen Dong.
Knowing the Nikkei 255 index's performance, how could he allow his funds to be locked up in the market?
in addition.
The drawbacks of this hedging model are also obvious.
Funds are limited. Whether you are bullish or bearish, the standard lot you can buy is a fixed total value. You won't be allowed to buy more lots for no reason.
To some extent, hedging will require double your margin.
Furthermore, the transaction fees incurred during the transaction will not be reduced by a single penny.
He's insane, this guy is a madman.
Henry couldn't help but shake his head inwardly; he had seen even more radical clients before.
But Chen Dong was someone he had never seen before.
"Transaction complete."
"Boss, the average entry price is around [point]."
The transaction for 150 standard lots was completed in less than a minute.
This is related to the Nikkei 255 index being in a bullish trend.
Buying high and selling low is not a strategy only for novice investors.
Institutional investors, private equity firms, and some big-time investors also like to chase rising stocks and sell falling ones.
Chen Dong built his position in batches, but his 150 short positions didn't even cause a ripple in the bullish market.
2 PM sharp.
The island nation's stock market closed.
The market index closed at 0.61 points.
Singapore stock index futures, with the Nikkei 255 index at points.
Chen Dong's account balance is $299,900, with a floating profit of $48,800.
In addition, there are also short positions of 150 standard lots with an average price at a certain point.
Henry wiped the sweat from his forehead.
He didn't have an easy day.
Don't be fooled by the fact that Chen Dong's account currently has a floating profit of $48,800.
To put it bluntly, it's just a slight fluctuation.
Who can predict tomorrow's market trend?
God bless this Chinese man, may he not suffer a margin call.
Henry didn't want his fee to go down the drain.
......
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