3: Futures margin, millions of profits!

Inside the exchange.

A large screen occupied the entire wall, displaying the global futures marketQuotes (market conditions). Red and green numbers flickered continuously, representing price increases and decreases.

News items scrolled below the screen, updating the latest market dynamics and important news in real-time.

The traders all looked exceptionally busy, and a tense atmosphere permeated the air.

On one side of the hall, there was an information desk, where someone was currently asking questions.

Bai Yu had only played futures twice in his previous life and wasn't particularly familiar with them, so he walked over and waited for a while.

"Sir, what question would you like to ask?"

"I'd like to open an account."

"To open an account, please go to Window No. 5."

"Alright."

With that, Bai Yu walked to Window No. 5.

"Excuse me, how much margin do you plan to deposit this time?"

Bai Yu had already considered it before coming; he still had 250,000 federal currency in his card, so he would directly put in 200,000!

"Two hundred thousand."

"Please wait a moment."

"Mm."

While waiting, Bai Yu also reviewed some basic knowledge about futures.

Futures can be seen as a contract, such as Party A purchasing one ton of pork from Party B at a price of 15 federal currency per jin three months later.

This type of contract ensures that farmers' products have a market and allows buyers to lock in future procurement prices.

But why have futures become a high-risk financial product?

The core lies in the margin system! The margin system creates a huge leverage effect in futures trading.

The account opening process was very fast.

After opening his account, Bai Yu didn't procrastinate; he immediately found a trader and inquired about the current market situation for soybeans.

This trader was a man wearing glasses, who looked quite handsome and refined.

He chatted briefly with Bai Yu, then said, "At your age, you're still in school, right? You dare to put in 200,000 federal currency for your first time playing futures? You must have a rich family!"

Bai Yu smiled and didn't deny it, mainly because if the trader in front of him knew he was an orphan who had gone all in with his pension, he would definitely try to dissuade him frantically.

Seeing this, the trader didn't say much, thinking it was best to just do his job.

Good advice is wasted on those who are determined to fail.

Many people who come here will not listen to advice.

"Currently, the market price for soybeans is 2.25 federal currency per jin. The market expectation for soybeans is a price decrease; the contract price for half a month later is 2.18 federal currency per jin."

"One lot of contract is one thousand jin of soybeans, which is 2180 federal currency."

"The margin ratio for soybeans is 10.5%. With 200,000 federal currency in margin, you can buy 873 lots."

"After deducting transaction fees and the investor protection fund, I suggest you buy 800 lots. How about it?"

Bai Yu nodded.

"Okay."

"Then I'll help you purchase them?"

"Buy them. I'll accept the loss if there is one. I don't lack this money."

The trader heard this and shook his head with a smile.

To be honest, as a trader, he was very well-informed about various news.

This year, in the Fourth Administrative Region, which is the South American region, soybeans are harvested from March to July, which has the greatest impact on the current market.

Recently, the local climate in the Fourth Administrative Region has been quite good, and soybean producing areas have had bumper harvests.

Soybean prices are expected to fall.

Doing this now offers little chance of making money; only newcomers who don't understand anything would mess around like this.

However, he wasn't familiar with Bai Yu, so it was impossible for him to proactively offer information. Otherwise, if soybean prices soared, he might get into trouble!

The trader quickly completed the operation, and Bai Yu also received the transaction confirmation slip, transaction records, and other documents.

The trader also added Bai Yu's WeChat, and Bai Yu glanced at his contact.

Trader - Xiao Chen.

"Looks like a work account."

Bai Yu looked at the 800 lots of contracts he had acquired, his heart ablaze.

What did 800 lots mean? It meant a transaction contract involving nearly 1.8 million federal currency. It was nine times his principal!

According to the information provided by the Golden Finger.

On July 25th, soybean prices reached a high of 3.61 federal currency per jin.

At that time, would his profit only be 1.43 / 2.18 = 65.6%?

No!

The actual money he would earn would be: 800 lots × (3610-2180) federal currency per lot = 1,144,000 federal currency.

Even after deducting handling fees and other extra expenses, he would still earn over a million federal currency.

This is futures! Using a principal of 200,000 federal currency to earn over a million federal currency is the charm of leverage.

Of course, this is the profitable side of futures.

But what if soybean prices dropped to 1.93 federal currency per jin during this period?

It would become another calculation: Loss = 800 lots × (2180-1930) federal currency per lot = 200,000 federal currency.

In this situation, if the margin is insufficient and no further margin is deposited, a forced liquidation will occur.

Meaning 200,000 federal currency would be wasted! In severe cases, it could even lead to debt.

Just as he walked out the door, his phone rang.

"Loving you at 250°C

Drip-drip, pure distilled water ~"

[Big Godson]

"Hello ~ Brother Yu."

"You saw the message, right?"

"I saw it. Why are you suddenly planning to take leave? Don't you want your full attendance bonus?"

"Didn't I say? I want to play football."

"Bah, I don't believe a word you say! Every time we play football, I have to drag you along. Tell me, is it because of the incident with Xin Xin Baby's clip?"

Hearing this, Bai Yu froze for a moment.

Yesterday, Wednesday, was his weekly day off.

And with the Golden Finger, his mind was entirely on the Golden Finger, and he almost forgot about the small conflict that arose from clipping a female streamer named Xin Xin Baby at the company the night before last.

The cause of the incident was simple: this female streamer had one of her few funny clips, which Bai Yu edited and posted on the clipping account. But during the process, for a moment, the beauty filter was missing, and her chubby face was exposed, caught by sharp-eyed netizens who took screenshots.

Since Bai Yu was responsible for the editing, he didn't notice this problem.

When that woman woke up yesterday and saw a few ugly photos in the comment section, she was so angry that she went directly to the editing department when she went to work in the afternoon and started yelling.

It turned out that Bai Yu happened to be on his Wednesday rotation leave!

It is said that the scene was quite spectacular at the time.

Later, this female streamer actually confronted Bai Yu in the editing department's group chat.

Bai Yu was bewildered at the time, and it was the editing department manager who privately messaged Bai Yu, explaining what happened and telling Bai Yu not to argue with that madwoman.

Just as the female streamer was being discussed, Bai Yu wanted to ask if any female streamer had recently received hundreds of thousands in tips.

But he felt that if he asked that, and then a car accident happened, it would be difficult to explain.

"Brother Yu, why aren't you talking? Could it be that Xin Xin Baby's scolding was too harsh, and you're emo?"

"That's not it. I already blocked her before her long rant."

"That's how it should be. You're a top student from Tianhai University; coming here for an internship is just for fun, you don't need to indulge her. What's more, which streamer doesn't have haters? She has plenty of ugly offline photos, and it hasn't stopped her from finding sugar daddies."

Zhang Youpeng changed the subject, saying, "Oh, by the way, about playing football, it's settled, alright? I'm going to contact other classmates now."

"Okay, then bye-bye."

Just as Bai Yu was about to hang up, Zhang Youpeng hurriedly said, "Wait a moment, I almost forgot one more thing."

"What is it?"

"I saw your ex-girlfriend from Normal University when I was at the supermarket last night."

Bai Yu put his hand on the hang-up button, but the other person seemed to see Bai Yu's action and urgently said, "Wait a moment, don't hang up yet. Your ex-girlfriend found a boyfriend, guess who it is?"

That damned curiosity still made Bai Yu unable to resist asking.

"Who?"

"An alumnus who interned at the same company as us, the guy who likes to wear long hair, named Wu Hao, from the art department. I heard this person is quite rich, and his character isn't bad either. Your ex-girlfriend is quite capable."

"Got it, see you this afternoon, bye-bye."

"Beep beep beep ~"

Bai Yu decisively hung up the phone.

His ex-girlfriend was quite beautiful.

Especially that photo taken under the cherry blossom tree, wearing a light pink dress, which he still remembers vividly.

At that moment, she was the white moonlight in his heart!

However, the emotional relationships between men and women in this world also contained too much materialism.

This ex-girlfriend had too strong a spending habit; in less than half a year of being together, she spent over 100,000 federal currency.

And this was during their student days!

He wasn't a rich man, so out of rationality, he naturally broke up with her.

"Before I had the Golden Finger, I would definitely still feel some sadness."

"If I were to analyze the root cause of the sadness, it would actually be the fear that the next person I find might be even worse."

"But now... well, I don't need to worry about that."

"Just 1 point of intelligence information can easily earn a large amount of wealth... The future is promising!"