"Mr. Zhang, this is the head of Citibank's futures investment department, Joe Chadson." After Zhang Fan and Christian came to Citibank's futures investment department together, Christian introduced Zhang Fan to a middle-aged white man who looked more like a teacher and professor: "He is an expert in futures investment, if you have any needs, you can consult him." ”

"Hello Mr. Zhang." Richardson stretched out his hand to Zhang Fan with a smile on his face, "You can call me Richard." ”

"The name." Zhang Fan wanted to laugh in his heart. It seems that this person will appear in many film and television works in China.

"Richard, I want to invest in gold futures, I don't know what you recommend?" After sitting down in the VIP room, Zhang Fan immediately began to ask.

"Mr. Zhang, the gold market is trending downwards right now. If you're interested in investing, you can go short. Richard is not talking nonsense, the trend in the gold market is indeed going downward. Richard was not wrong to suggest that Zhang Fan go short and buy the price fall.

Zhang Fan did not respond directly, but sat on the sofa and pondered for a moment. Only then did he ask aloud, "Since the current trend is down, is it true that most people are shorting?" ”

"Huh?" Richard looked at Zhang Fan with some surprise. He had heard Christian say that Zhang Fan was for laymen, but this kind of thing was not something that a layman could say.

Indeed, if the market trend is like this, most investors will follow the trend. Since the price is falling, most people will choose to buy and short. Since everyone is buying down, there will be fewer people buying upside.

To put it bluntly, the futures market is a bet, and those who buy up bet against those who buy down. When the price falls, those who buy the fall win the money of those who buy the rise. The reverse is also true.

What Zhang Fan asked was, how much can you earn if you buy it down?

"That's exactly what the market is." Richard did a quick calculation in his mind: "If you enter the market now, the three- to six-month forward futures contract will probably have about 30% of the income." ”

After a pause, Richard went on to explain, "This is just a prediction, after all, the market is volatile, and even God doesn't know what will happen." ”

Richard is exonerating himself, after all, he is only giving advice. If the advice wasn't right and something unexpected happened, he couldn't trap himself in it. You have to declare in advance that you're just giving advice.

"And how much does Citibank charge?" After a moment of silence, Zhang Fan asked out loud.

These platforms give customers all kinds of convenience. But they are not charities either, and they also charge a fee. can earn 100% and 30% of the income in three to six months, and Zhang Fan is also a little moved. After all, if he invests five billion dollars, he will be able to earn more than one billion in this period of time. The futures market is really fast. Of course, if you lose the bet, you lose quickly.

"Mr. Zhang is a VIP of Citibank." Richard laughed, "We can give Mr. Zhang Fan a discount." Only 10 percent is charged. ”

"......" Zhang Fan wanted to scold people. With a total profit of only 30 percent, Citi will take a third of it. And that's not even counting the high interest you have to pay to refinance!

And most importantly, this is not really news. Because anyone can be sure that the market will continue to fall as Richard expected!

If it doesn't fall, Zhang Fan will not only not make a dime, but will lose all the money he has accumulated in the past few years!

What is this called!

The interest on the bank loan is shared by Pintai's transaction. Zhang Fan suddenly felt that he had taken such a big risk to invest in futures, and most of his final income was taken away by the bank. And he runs the risk of bankruptcy. How can Zhang Fan be willing.

It's just that you can't quit at this time. After all, borrowing such a large amount of money from the bank must be spent to find a source of income. Otherwise, would such a large sum of money have to be deposited in the bank to eat interest? Zhang Fan needs to pay high interest on his own loans!

"So be it." After a moment of silence, Zhang Fan raised his head and looked at Richard, "Buy all my money." ”

"Huh?" Richard looked at Zhang Fan in amazement, didn't he hear me say that the recent trend is down?!

"I said, all of them have to be bought." Zhang Fan laughed, "That is, I want to do more." ”

In the case of a generally bearish market, there are only two possibilities to buy and go long. One is to be beaten into a sieve by many empty orders, and in the end, even the underwear has to be lost. And the other is because most people are buying and shorting, and if Zhang Fan buys up, he will sweep away these people's money, so as to make a crazy profit!

It's definitely a huge risk, because while it's possible to win a lot, the probability of losing all of them is infinitely greater. Most of the people who enter this market will choose a more secure way. It is rare for Zhang Fan to use such a huge self for the first time to enter the market and not take the usual path.

What made Richard feel speechless the most was that Zhang Fan was an absolute layman. This layman enters the market with a large amount of money in his hands, but does not listen to the advice of his own professional, and only cares about his own desire to make a lot of money. But how can the money in the world be so easy to make, don't look at you with such a large amount of money in your hand and think that you can do anything. In the huge futures market, billions of dollars can't even make a small wave.

"Mr. Zhang, I inform you as a professional." Richard looked serious: "If you do this, you will most likely lose all your money." ”

"Thank you for your advice." Zhang Fan looked at him with a relaxed expression, "I have already made a decision." ”

"Alright then, Mr. Zhang." Richard shrugged his shoulders, "Since you've made your decision, I'll open an account for you." ”

"That's right." Richard asked out again, "Mr. Zhang, do you need to use leverage?" ”

The so-called leverage is a bank-backed trading method in the futures market. It's more technical and complicated to explain completely. To put it simply, if you open a futures investment account in a bank and invest 10,000 yuan in the account. Of course, under normal circumstances, you can't open an account with such a small amount of money, here is just an analogy. Banks can give you leverage from two times to many times more than $10,000. It's a way to borrow money.

If you choose double leverage, then you will have 20,000 yuan on your account. Ten times the leverage is 100,000 yuan. The principal will be increased as much as the leverage is multiplied. It's a scary way to borrow. Because it is possible to gather the maximum amount of start-up capital in the shortest amount of time.

For example, Zhang Fan now has a huge amount of money of 5 billion US dollars in his account, and if he asks for 10 times leverage, then Citibank can even provide a full 50 billion US dollars of funds for futures investment!

Of course, Zhang Fan didn't need such a big number, and he didn't dare to ask for it. Because there are strict restrictions on this insane way of borrowing. After all, it is impossible to make a profit from the bank. It has always been banks that make money from other people. This approach is no exception.

After accepting the bank's leverage, you have to accept the bank's request. This is also known as forced liquidation.

To use an analogy to explain, you accept 10 times the bank's leverage and buy a short order for 100,000 yuan of falling soybean prices. But the price of soybeans in the market has risen. When the price increase reaches the upper limit of your principal of 10,000 yuan, the bank will choose to liquidate and sell your futures contract to ensure that the money lent to you is not recovered by loss. The only thing you lose is your own 10,000 stake.

Of course, if you have sufficient collateral, the banking industry can accept a lower amount of tolerance. In other words, you can bear more losses, giving you a chance to turn around in anticipation of the price falling back and making a lot of money. Again, the deeper you get into, the greater the risk. After that, it's up to you to take the risk.

Although Zhang Fan said that he is completely different from the futures industry, since he has made up his mind to make a fortune from here, how can he not pay attention to it at all?

During this time, Zhang Fan had already hired some professionals with high salaries to conduct surprise training for himself. Although it is impossible to train to be a master of the industry, the most basic things in the industry are very clear. At least it won't be a blind person who is led by the nose.

The reason why Zhang Fan borrowed money from Christian first and then came to the futures investment department to invest was to avoid the harsh restrictions of this leverage as much as possible.

Because the more leverage you are asked to provide, the greater the restrictions. The Bank of Scotland used to offer a full 20 times leveraged funding ratio, but after getting so much money, the market price will be forced to liquidate the position if there is a slight fluctuation in the market price. Most of the time of a futures contract is about a few months, who can guarantee that the price will continue to rise or fall for a few months? Once there is a fluctuation, the position is closed, in addition to losing its own principal. If the price changes again, you can only watch it and regret it.

Therefore, Zhang Fan has already asked those professionals who have been invited with high salaries to do a good job of the business plan. Choose the most appropriate leverage ratio. Not only can you get enough investment funds, but you will not be forced to close your position due to price fluctuations.

"How much leverage can Citibank offer me?" Zhang Fan didn't say his request first, but asked Richard how much support Citi could provide.

"According to Mr. Zhang's net worth and reputation, Citibank can provide you with up to fifteen times the capital!" Richard's face was confident. After all, tens of billions of dollars is a huge fortune, but it is not a lot of money for Citibank.

Glancing at Richard, Zhang Fan sneered in his heart. Naturally, you can provide so much money, after all, as long as you reach the warning line, you can forcibly close the position, and the loss is just me.

If you earn it, you can take at least 10% of the share. Who wouldn't want to offer this kind of business? The money you offer is a lot, but it's just a formality. Zhang Fan was naturally unwilling.