How To Grasp Profit Opportunities Under Bad Profits
In March 15th, CCTV news broadcast a report on "lean meat essence", involving a listed company.
Affected by the impact, the company's stock started diving in the morning and was suspended in the afternoon.
That night, the company declared a suspension and has not yet resumed its licence.
At present, a ETF from the market
Discount rate
In view of this, it implied that after the resumption of the stock market, there was about 35% downside.
If investors believe that the stock will not exceed 35% after the resumption, they can make positive arbitrage through "buying ETF - redemption of a basket of stocks - selling other constituent stocks except for suspension". Conversely, investors can reverse arbitrage by buying a basket of stocks - cash instead of purchasing ETF - selling ETF.
However, this method requires a large amount of money and complex operation, and it is estimated that the profit of this strategy is around 10%.
In addition, if the investor holding the stock wants to sell the stock during the suspension period, he can reduce the stock to stop the loss by buying a basket of other constituent stocks - the stock purchase ETF - sell ETF.
However, at present, the corresponding ETF discount rate is generally high, and investors will lose more than 30% of the shares before they stop selling the shares by selling ETF shares.
On that day
Bad profit
When it came out, a large number of clients had been short selling securities and short profits.
From the morning CCTV news to the afternoon limit of the stock, the stock yield in just a few hours is over 8%.
Because margin trading is a T+0 paction, conservative investors can make profits on that day.
As the impact of the incident is relatively large, the market is generally expected that the stock market will continue to fall after the reopening in the future, and investors will still have about 30% of the profit margin.
Through the above comparison, we can see that direct
Margin trading
Shorting is simpler and more flexible than ETF operation, and the profit margin is greater.
- Related reading
- Bullshit | Denham X MEDICOM TOY 2019 Brand New BE@RBRICK Doll Is On The Way.
- Glimpse of exhibition | Shanghai International Fashion Accessories Exhibition
- Dress culture | The 70 Year Anniversary Of The Birth Of New China
- Daily headlines | Erdos Market Supervision And Administration Bureau: 7 Batches Of Cashmere Products Failed
- Fashion brand | Legendary Designer Wakubo Rei'S Fashion Empire Appeared In Fashion Week.
- Fashion shoes | All Star 100 Ox Shoes New Snake Color Matching Is Coming Soon.
- Shoe Express | From Denmark To The Global Brand, To Create The Largest Vertical Integration Shoe Business.
- Mall Express | The Era Of Data: Yintai Takes 10 Million Digital Members, Which Is The New Retail Speed.
- Market trend | Traditional Enterprises Are Not As Old As Net Red.
- Regional investment promotion | Late Arrival: The Transformation Of Clothing Wholesale Market "Red Net" City To Fill The Vacancy In The Clothing Market.
- Emilio Pucci 2008 Autumn Winter Women'S Wear
- Italy Brand Armani'S Net Profit Increased By 80% In 2010.
- Three Levels Of Marketing Consultation
- Emilio Pucci 10 Years Women'S Wear
- Three Basic Elements Of Running A Good Coffee Shop
- Sun Li And Deng Chao Get Married. Yao Ming Attends &Nbsp, Baoqiang Wang And Other Guests.
- British Customers Get Tens Of Thousands Of Pounds For Vineyard Wrestling
- Mexico Mayor Of Tijuana Arrested For Illegal Possession Of Firearms
- 天生一對有望復(fù)合 謝霆鋒張柏芝情侶服飾大評析
- 憂郁沉穩(wěn)藍色 演繹別樣夏天