Metropolis: I am an investment genius

Shorting a stock is not the same as selling it outright.

The U.S. stock market actually implements a system of stock delivery T+0 and capital delivery T+3.

That is, if you originally held 100 shares of a stock and you want to go short in the U.S. stock, you must sell the stock in order to sell short.

On the surface, it seems to be bad for the market, but in fact, bears can only go short once! If you want to go short again, you have to buy the stock back in order to go short again.

And Xia Guo stock market short, without selling the stock in hand, you can repeatedly sell dozens of times and hundreds of times, commonly known as naked short selling, the harm of this short selling mechanism is N times greater than the mechanism of US stocks.

In the U.S. stock market, naked short selling mechanism is not allowed, and the $1,000 funds must not be used until 3 days after the $10 per share sell-off.

I believe that many readers and friends have speculated in domestic stocks, and they feel very helpless about the system that domestic small retail investors can only do more in one direction.

Although China has opened the business of margin trading, it needs 500,000 funds to open it.

But even if you have $500,000 to invest, you’ll still find that you often can’t raise securities, especially when individual stocks or markets start to trend.

However, if you use a domestic Internet broker such as Snow Win Securities, the threshold is much lower.

In the US market, shorting has become popular, giving the public the opportunity to short, as long as there is a margin of $1,000, you can short a stock.

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For example, the author has a friend who once shorted a stock, but never cared. The stock rose up to 15% and the friend did not use leverage.

And when it fell to the point where this friend could make 15% profit, he opened the account and found that his stock was liquidated at the high!

This is the margin mechanism.

Generally, brokers will have risk control value calculation during margin trading operations, and different brokers may not have the same calculation method. Under normal circumstances, when your overall account risk control value is lower than 0, your positions will be forcibly liquidated.

This time to short Intel stock, Su Yu also contacted Charlesschwab (Jiaxin) in advance, and the two sides signed a cooperation agreement.

When Tianyu Investment is shorting Intel’s stock, Schwab needs to lend shares to Tianyu Investment to sell short on the stock market.

Tianyu Investment has a total of 40 billion Xia Guoyuan, which is more than 6 billion US dollars, and Charles Schwab is the strongest brokerage in Bald Eagle Country, and directly ate this transaction.

According to the content of the contract, the two parties take margin trading, because Intel’s stock price is above $16.67, so the margin is calculated at 30%.

In other words, the $6.1 billion invested by Tianyu can short about $20.3 billion of Intel stock.

If the Intel stock held by Tianyu Investment loses more than 30%, it will be forcibly liquidated by Schwab.

In other words, after the entry of Tianyu Investment, because it is short Intel stock, Intel stock rises by 30% on this basis.

Su Yu and Tianyu Investment were dragged down, and were forcibly liquidated by Jiaxin, and all funds were lost.

The reason why Su Yu chose Schwab to be a short broker this time is that Schwab is willing to reduce the interest paid by some of the lent stocks and the commission paid.

The most important thing is the concession that Jarwab makes on margin.

Originally, Tianyu Investment was used to do this short, and other brokerages were only willing to give 25% margin trading, of course, Su Yu was unwilling.

Jiaxin has also investigated Tianyu Investment, and even has a detailed personal file about Su Yu, knowing that he is a financial genius and earns a lot of wealth every time he invests.

This time, Quan should form a good relationship, sell Su Yu a favor, and Su Yu is willing to find them to do it again in the future, whether it is the stock market or other financial markets.

It’s a long-term investment.

What’s more, Su Yu’s fund of more than 6 billion is also a big order, even if some rates are reduced, Jiaxin can make a lot of money.

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The conversation goes back to Intel stock.

After Tianyu Investment took over the stall of winning investment, it will continue to stand still and watch the performance of the four financial giants of Wall Street.

If the four giants of Wall Street want to continue to make long and drag cross-sky investment, it is impossible.

Tianyu investment is not a winning investment in this kind of small shrimp, can not withstand the scared, Su Yu has a comprehensive layout.

If Tianyu Investment takes over Winning Investment at 90 yuan per gold per share, it is to find Charles Schwab to borrow 48 million Intel shares to sell to Winning Investment.

The deal is worth approximately $4.32 billion.

That means that Winning Investment will lose 1.3 billion US dollars, or more than 8.5 billion Xia Guoyuan.

The $6.1 billion in Su Yu’s hands was enlarged to 20.3 billion under the margin, and the plate became much larger.

Even after taking out $4.32 billion, there is still nearly $16 billion to continue to short Intel.

As long as Intel’s stock price continues to rise, and the four financial giants on Wall Street want to drag him down, Su Yu can continue to short Intel at one stock price node after another.

In this way, it has become a big battle between the two sides, competing with which of the two sides is stronger.

If the four financial giants of Wall Street want to defeat Su Yu, they will have to invest more than twice as much as his capital.

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