Calculated based on the opening price of his main index futures contract.
The 20-lot contract order consumed approximately 3.3 million in margin from his trading account.
After deducting the margin for the open position, he still had 2.7 million in his account, which could be used to cover floating losses from the position.
Furthermore, calculated by the standard that one point fluctuation of a single lot of the China Securities 500 Index futures main contract represents 200 yuan in profit/loss fluctuation, 2.7 million in funds was enough for him to withstand a 6% fluctuation in the China Securities 500 Index in the opposite direction of his trade.
This meant that with 6 million in capital, all of which was his own funds.
For the same 20-lot short position in the China Securities 500 Index futures main contract, his fault tolerance for the position was several times higher than when he used leveraged financing previously.
This fault tolerance space for the position.
Indicated that even if his timing judgment was slightly off at this moment, it would be difficult for his position to be liquidated even if he had to passively hold it for a while.
"Little brother, are you... shorting the stock index?"
After all of Su Yi's short orders were executed, another major investor sitting diagonally behind him glanced at his account's open positions and could hardly believe his eyes.
"A 20-lot short position in index futures contracts, you've got quite some guts! Huh, wait... you're not seeing things and placed the wrong order, are you?"
Currently, both markets were in a continuous strong rebound trend.
At this moment, the other party actually went against the trend with a heavy short position in the stock index, which made him suspect that the other party had suddenly made a mistake and placed a short order instead of a long order.
After all, in his understanding.
Any normal investor wouldn't take a heavy short position in the stock index at this time.
Su Yi turned his head to glance at the middle-aged man who had kindly reminded him from diagonally behind, and replied,
"I didn't place the wrong order, I'm shorting the stock index."
The middle-aged man gently shook his head and said,
"Alas, what you're doing is purely throwing money into the market!"
"Can't I be bearish?" Su Yi asked with a smile.
The middle-aged man replied,
"It's not that you can't be bearish and short sell, it's just... in any situation, going against the trend is never as good as following it. Currently, it seems the market is still in a bull trend, and taking a heavy short position in the stock index during a bull market, isn't that like a god of longevity eating arsenic, intentionally seeking death?"
"Little brother is still young, daring to touch index futures."
Hearing their conversation, another middle-aged man sitting near them in the trading room also chimed in.
Su Yi looked up and around, noticing that there were quite a few major investors in this VIP trading room today.
"In the major investor room of this branch, I rarely see free investors as young as this little brother."
A middle-aged man in a plaid shirt, also not far from Su Yi's seat, said,
"Normally, young fellows your age shouldn't like boring stock investments."
Seeing Su Yi's attire and demeanor.
He subconsciously assumed Su Yi was a young descendant from a wealthy family in Shanghai, suddenly carrying a few million in pocket money wanting to invest, but in reality, was just there to experience the thrill, essentially having little understanding of the dangers of the financial market and the investment risks of index futures.
Su Yi smiled as he looked at the few people who had just spoken, not rushing to refute them.
Inwardly, he still held great respect for these seasoned major investors sitting beside him in the trading room, who had long been tempered by the market.
After all, he knew.
Those who could trade long-term in a VIP trading room of a securities company branch.
Even if they weren't various forms of speculative capital with a top-tier understanding of market manipulation logic, they were experienced investors with a deep understanding of the market, their own trading system, and substantial financial strength.
The reason he insisted on coming here to trade after opening an account.
Firstly, he felt the environment here was better than at home, with free tea, fruit, snacks, and excellent customer service; secondly, he felt that this place gathered some of the smartest investors in the market, where he could meet people, learn about the latest market information, or even pick up some trading techniques he hadn't yet mastered.
"Young people today don't dislike stock investments; it's just that many young people lack the principal to participate,"
Su Yi responded after a moment of contemplation.
"And I personally believe that the Shanghai Composite Index will not return to 5000 points, so shorting index futures at this position, I don't see any problem with it."
Hearing Su Yi's assertion, at this moment, a man who looked to be in his late forties or fifties, with a somewhat dark complexion and casually wearing a brown T-shirt, squinted his eyes at Su Yi and asked,
"What is your reasoning for concluding that the Shanghai Composite Index will not return to 5000 points?"
Su Yi thought for a moment and said,
"Expectations, perhaps. In financial markets, overly consistent expectations are rarely realized."
"That's feedback from the sentiment side, anything else?"
The other party continued to ask.
Su Yi continued to reply,
"Valuations, chip structure, and the macroeconomic front actually don't support it either. Of course, the most important factor is the withdrawal of leveraged funds.
Although regulators have slowed down the pace of clearing out-of-market leveraged funds, the decision to clear leveraged funds has not changed.
The clearing of leveraged funds will inevitably lead to a significant reduction in market liquidity. Without capital support, can stock prices continue to climb?"
"It seems... there's some truth to that."
The other party smiled and then carefully looked Su Yi over again.
"It appears you have indeed studied the market, and you're responsible enough with your own funds."
After speaking, the other party no longer paid attention to Su Yi.
Su Yi also carefully observed the other party, always feeling that their face was somewhat familiar, as if he had seen them somewhere before.
But when he tried hard to recall, he couldn't remember anything.
During his brief contemplation, the market continued to trade within a red range.
Under this trend, Su Yi's position also fluctuated around profit and loss, until... around 1:30 PM, the Shanghai Composite Index once again attempted to break upwards.
His position's profit and loss then began to rapidly swing towards the loss side, expanding quickly.
"After oscillating for most of the day, it's finally showing some signs of improvement."
"I told you the Shanghai Composite Index would definitely break upwards today. As long as it can surpass 4800 points today, hitting 5000 points later will be easy."
"After this wave rises, it should be the main third wave of the bull market, right?"
"'iFinD' and 'Eastmoney' should hit their daily limit directly. 'Big Finance' should now be exerting effort to recover previous losses from the correction and lead the index in a full counterattack."
As the Shanghai Composite Index ended its oscillation and attacked upwards again, the bullish sentiment in the trading room also surged.
However...
The many major investors holding positions didn't have long to celebrate.
About ten minutes later, the Shanghai Composite Index, which had been strongly rebounding upwards, suddenly ran out of steam just under 10 points away from the intraday high it had set in the morning, then turned downwards once again, oscillating and falling back.
And as the index failed to hit a new high, everyone's expectations were dashed, and disappointment spread.
Everyone had thought that even if the Shanghai Composite Index had no hope of breaking through.
It would fall back to its previous oscillation range to stabilize and continue building momentum.
But unexpectedly, in the subsequent few minutes, the Shanghai Composite Index directly and rapidly pierced through its previous oscillation range with a thunderous momentum, and then, amidst everyone's shock, doubt, and growing panic, it plunged southward without looking back.
At 2 PM, the Shanghai Composite Index turned from red to green, retracting 1% from its intraday high.
At the same time, the China Securities 500 Index also quickly turned from red to green.
During this process, the floating profit and loss of Su Yi's 20-lot China Securities 500 Index futures main contract position had changed from a loss of 270,000 just over ten minutes ago to a profit of 130,000.
At 2:20 PM, the intraday decline of the Shanghai Composite Index expanded to 1.23%.
Concurrently, Su Yi's index futures account saw its position profit rapidly increase to over 400,000.
At 2:40 PM, the Shanghai Composite Index's decline continued to expand to over 2%, panic resurfaced across the market, and massive selling orders appeared on the trading boards of major popular heavyweight stocks in both markets.
Concurrently, Su Yi's index futures account saw its position profit break through the 700,000 mark.
In the final 20 minutes of trading, the Shanghai Composite Index accelerated its crash, falling to a low of 4.67%.
As for Su Yi's position in the China Securities 500 Index futures main contract, its late-session crash was even more severe than that of the Shanghai Composite Index, hitting a low of 5.02%.
Finally, when 3 PM arrived and both markets closed.
The Shanghai Composite Index and the China Securities 500 Index, despite recovering a small portion of their losses in the last few minutes, still plummeted by 3.46% and 3.62% respectively.
The Shanghai Composite Index, in particular, consecutively lost 4700 points and 4600 points, once again falling into a panicked crash.
And due to the dramatic change in the last hour of trading.
When both markets closed, the entire market once again saw a tragic situation of 'hundreds of stocks hitting their daily limit down'.
Facing such a closing situation in both markets, in the VIP trading room of Huaxin Securities' Fuxing Road branch in Shanghai's financial district, a group of major investors gazed at the frozen market screens of both exchanges, all falling silent for a moment.
Meanwhile, those major investors who had either kindly reminded Su Yi or had dismissed his shorting of index futures.
At this moment, stared blankly at their accounts showing huge losses, their expressions completely stunned.
Especially the middle-aged man who had immediately reminded Su Yi about possibly placing the wrong order and was seated closer to Su Yi, now suddenly saw the bright red figure of over 1.7 million in new profits in Su Yi's holding account, his face displaying an expression of shock and incomprehension.
(End of Chapter)
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