"Mr. Chen, the margin for crude oil futures on the exchange is 14%, and the leverage can be magnified 7 times."
"If you go through HSBC, I guarantee that you only need 10% margin per lot, which is equivalent to 10 times leverage."
"As for the transaction fee, the closing fee is 20 yuan per lot, and the transaction fee is waived for intraday closing."
That sounds pretty good!
The main trading instrument in NYMEX crude oil futures is the light sweet crude oil futures contract.
There are two trading units: one is CL, which corresponds to 1,000 barrels per lot.
Another type of mini futures contract, QM, corresponds to 500 barrels per lot.
In trading, the unit used is usually CL, with each lot representing 1,000 barrels (gallons) of crude oil.
If the price of crude oil is $15.42 per barrel, the margin for each lot is $1542, which is equivalent to a leverage of 10 times.
Chen Dong smiled and asked.
"Manager Ma, how long will it take to activate the account?"
"Well...Mr. Chen, opening an account requires you to sign several written contracts. The fastest way would be through our branch office in Tokyo."
"However, I cannot guarantee that I can achieve 10x leverage."
"so......"
At this point, Ma Guoliang felt somewhat embarrassed.
One second he was confidently promising that he could achieve a leverage of 10 times, but then he was proven wrong on the spot.
"So the contract needs to be signed in Hong Kong, right?"
Ma Guoliang nodded and explained.
“Mr. Chen, the exchange’s margin system is not something we can control.”
"The 10% margin I mentioned is based on mutual cooperation. The excess amount is actually funded by HSBC and is only for specific clients, not to the public."
"Therefore, it is necessary to sign some other terms."
Upon hearing this, Chen Dong instantly understood.
It's simply a way for banks to attract customers.
When funds incur losses and reach the risk control warning line,
The bank will then notify you to replenish your margin or forcibly liquidate a portion of your positions to reduce risk.
Thinking of the London market, Chen Dong quickly followed up with a question.
"Manager Ma, are the leverage ratios for NYMEX crude oil futures and Brent crude oil futures both 10x?"
"Yes."
After receiving Ma Guoliang's affirmative reply, Chen Dong nodded, indicating that the conversation should be paused for the time being.
"Manager Ma, it's getting late. Let's head back first and discuss the rest when we get there."
"Okay, Mr. Chen, I'll come to your room when I get back."
"Um."
On the way back, Chen Dong made a point of having Wangcai ride in the same car as him.
Inside the car.
Chen Dong raised his eyes slightly and said calmly, "Wangcai, we've been together for a while now. I'd like to ask you what you think: are you willing to leave HSBC?"
"Come out? Boss, what do you mean?"
Wangcai felt a sudden tightness in his chest, his adrenaline surging. He vaguely sensed that it might be related to the crude oil futures that Chen Dong had mentioned.
That being said, which trader wouldn't want to go to a bigger stage and showcase all their skills?
Previously, we didn't have such an opportunity, nor did we have such strength.
But Chen Dong is different.
From the stock index futures, Wangcai could sense that Chen Dong's control over the situation had reached an unparalleled level.
Wangcai believes that with Chen Dong's help, he will soon be able to gain a foothold on the international stage.
Once the thought took hold, it seemed to take root in his mind and wouldn't leave. Wangcai's breathing became rapid as he eagerly replied, "Boss, I'm willing."
How could I not want to?
For financial professionals, crude oil futures are a world-class stage.
Upon seeing this!
Chen Dong glanced at Wangcai with a playful look and teased him.
"Aren't you going to ask about the compensation you'll receive?"
"No, no need. The boss can give me whatever amount he wants."
Wangcai lowered his eyes, not daring to meet Chen Dong's gaze.
He was young and arrogant before, and didn't take Chen Dong seriously. He thought that he would lose everything soon, and he was even considering his future.
Looking back now, I realize I was too naive. I didn't recognize a powerful figure and didn't even know to latch onto such a strong backer. I even asked for a 0.3% profit share. Thinking about it now makes me blush.
Fortunately, Chen Dong didn't hold it against him. If he had, he would probably be kicking himself now.
"Alright, your annual salary will be set at HK$100,000 for now, and the profit sharing for each transaction will remain unchanged at 0.3% of the profit."
"If you're willing, we can proceed with this for now. But don't worry, your compensation will increase once the financial sector is established."
Dividends unchanged?
Upon hearing this, Wangcai's eyes lit up, and he said gratefully.
"Thank you, boss!"
He automatically ignored the annual salary of HK$100,000.
Let alone an annual salary of HK$100,000, even without a basic salary, the bonuses alone would be enough.
In the past month, how much money did Chen Dong actually make? Others might not know, but Wangcai certainly did.
It's at least $140 million.
Based on a figure of $140 million, what would a dividend of 0.3% be?
US$420,000, equivalent to HK$4.03 million.
A salary of 100,000 HKD is a joke compared to 4.03 million HKD.
As the principal accumulates, the money earned will only increase.
Under these circumstances, is an annual salary of 100,000 important?
......
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