How leveraged funds operate in the secondary market

Does the leverage** refer to the aggressive share in the grading**, the stable class share and the aggressive class share of the grading ** have corresponding **, which can be bought and sold in the secondary market. Look at the index tracked by leverage** to operate, buy when the index rises, sell when the index falls, and see the encyclopedia "Leverage Index**" entry for the corresponding index of each leverage**.

Leverage is also known as hedging. Hedge funds are those that take advantage of different markets for arbitrage trading. In terms of form, hedging** is a group of investment instruments that are traded across all market types, including foreign exchange, bonds, commodities and various derivatives.

The first hedge** was launched in 1949, and the earliest hedge** was very small, only betting on a single ** ticket, and the investment strategy was very single and very risky.

leverage, which adds borrowed currency to existing funds for investment; Leverage, the ratio of assets to bank capital. The rational use of the principle of leverage is helpful for enterprises and individuals to accelerate their development and improve efficiency, but there is also a risk that they cannot be repaid when due.

Ping An Bank has a variety of ** products, each ** risk, investment direction is different, you can log in to Ping An Pocket Bank APP-Finance-Wealth Management-** channel, to understand and buy.

2. The product is issued and managed by the company, and Ping An Bank is only a distribution agency, and the agency does not assume the responsibility for the investment, redemption and risk management of the product. Investment is risky, and you need to be cautious when entering the market.

You can look at the index tracked by leverage**, buy when the index rises, and sell when the index falls.

The index corresponding to each leverage** is listed in the encyclopedia "Leverage Index**".

First, considering the size of leverage, different grading ** has different leverage, from the current mainstream graded stock base, the general ratio of preferred share to aggressive share is 1:1 or 4:6, that is, the initial leverage is 2 times or times.

As the equity ratio between the two changes, so does the leverage. In general, if the net value of the aggressive share grows, the leverage decreases, and if the equity of the aggressive share is less, the leverage becomes larger.

Second, consider whether it is possible to pair the conversion in the case of a premium, and the current discount premium situation. Generally speaking, an excessively high premium rate will overdraw the future income of the aggressive share, and the motivation to create a hidden child is insufficient, so you need to pay attention when investing.

Third, taking into account the expiration time, for some products with expiration time, as the time approaches, the first of the aggressive share in the secondary market will gradually return to value, and the discount premium will disappear.

Fourth, consider the investment target, whether the investment target is dominated by ** stocks or small-cap stocks, and whether the investment target is actively managed or passive index. Slip with respect.

First of all, you need to understand the basics of leverage**. The so-called leverage** is the B share in the grade**. In the grading**, the parent ** is divided into a share with low risk and stable return and a high-risk, high-return B share, that is, leverage**.

An important feature of leverage** is that it contains leverage, and generally speaking, leverage** initially adopts a leverage of 1 2. This means that if the index is 10%, then the leverage index should be 20%. Conversely, if the index falls by 10%, the leveraged index** held by the investor will lose 20%.

However, leverage is not set in stone and will be reduced gradually. Leverage** can be traded normally in the secondary market like ordinary**, and the transaction cost is low, and there is no stamp duty.

There are many main levers for tracking indices, such as:

Shencheng refers to ---150023 Shenwan enterprising.

SZSE 100 Index - 150019 Yinhua Ruijin.

CSI Equal Weight 90 Index - 150031 Yinhua Xinli.

CSI 300--150052 Xincheng 300b

Small and medium-sized board refers to --150086 small and medium-sized board b

GEM refers to ---150153 GEM B

Leverage to track industry indices**, such as:

Brokerage sector ---150172**b

The real estate sector ---150118 real estate b

Non-ferrous sector---150097 commodity B, 150101 resources B, 800 non-ferrous 150151

The military sector ---150182 military B

Medicine – 150131 Medicine B

Information Technology - 150180 Information b

Environmental protection industry ---150185 environmental protection b

Internet Group - 150195 Internet B

Food & Beverage ---150199 Food B

**How to choose leverage**?

First of all, in the early stage of the market, the cyclical industries that benefit the most are often the first to start, such as the banking, resource (non-ferrous metals) industry, etc.

Secondly, exponential leverage is also a great option. For example, Yinhua Ruijin, Shenwan Enterprising, etc.

Again, look for a B-level with a higher leverage ratio when it comes to **.

There are also arbitrage opportunities with regard to leverage**, and there are also investment opportunities for investors seeking stability in A-rated bank yields.

Investment Strategy in Brief:

1. Capture opportunities.

When an industry has a favorable policy and an industry is launched, if you choose to participate in the industry with a large weight, refer to the "main industry distribution" in the above table; Or when the market style is significant, select the corresponding style, refer to the "Over/Under Style" in the table above.

For example, if there is a major favorable policy for real estate and the restrictions on real estate purchase are relaxed, you can pay attention to real estate B; If there is a sharp rise in international commodities overnight, you can pay attention to commodity B

2. Selected varieties.

Point 2: Try to choose a recent average daily turnover of more than 10 million, at least more than 5 million, otherwise the impact cost will be higher;

1. Don't operate leverage in bear markets**.

1. In particular, do not operate and allocate cyclical stocks with a high proportion of cyclical industries, such as Yinhua Xinli.

Second, the bull market can operate the leverage with a high proportion of cyclical varieties**1, the bull market cyclical varieties are rockets, but if the ability to select stocks is not good, you can consider operating leverage**.

3. The ability to operate leverage**:

1. Must have the ability to determine the bull and bear, the rise and fall.

**The bull and bear must be judged clearly, if the bear market to operate leverage**, it will die quickly.

The index is more difficult to track than the index, and the judgment can be determined by the fundamental performance, price-earnings ratio, technical, and trading volume. However, the fundamentals of ** are not easy to judge, the price-earnings ratio of ** can be counted but the ** range is not easy to grasp, and the trading volume of ** is not very sensitive, so it is much more difficult to determine ** rise and fall than **.

2. It is necessary to have a strong ability to stop loss and protect the principal.

3. Strong ability to grasp the trend, sell at the end of the trend.

4. Don't use the concept of value operation for leveraged operation, if you buy more and more, you will lose a mess.

"Leverage" means leverage, and the high-risk shares in the classification have the characteristics of leverage, not necessarily the debt base, and many of them are exponential. To put it bluntly, it amplifies the volatility of the market. For example, if it rises by 1%, the leveraged part may rise by 2% or more, and if it rises by 1%, the leveraged part may fall by 2% or more.

The on-site purchase fee is low, charged according to the transaction fee, which can be divided into 1:1 into Ruijin and Steady Share, and the annual income enjoyed by Steady Progress, Ruijin fluctuates with the market, and can refer to the difference between the net value and the ** price to buy and sell.

Over-the-counter purchases, according to the ordinary **subscription fee, for the index**, not divided into sharp and steady progress. If you participate in on-exchange trading, you must wait for the establishment of **, you can handle cross-system transfer custody business, and transfer ** shares from over-the-counter to on-exchange.

If you want to take advantage of leverage, you still have to trade on the floor to make money.

1. Grading ** does not necessarily have leverage. For example, the Ruihe 300 does not have leverage. Some tiers** are not leveraged when certain requirements are not met, but the majority of aggressive shares are leveraged.

The grading mode of grading**: Class A of the agreed return**This kind of ** is the only one of all ** wealth management products that can use the "agreed rate of return" for publicity**. Leverage principle for Class B leveraged shares:

It is necessary to understand the hierarchical index **Class B share share leverage, net value leverage, and **leverage.

2. Structured fund, also known as "structured fund", refers to a variety of products with a certain difference in risk-return performance through the decomposition of income or net assets under a portfolio. Its main feature is that the product is divided into two or more types of shares, and different income distributions are given respectively. The sum of the net value of each sub-class of the grading and the proportion of the share is equal to the net value of the parent **.

To be precise, the non-priority shares of the grading ** have leverage at a specific stage, otherwise there is no need to do any grading, and what I said upstairs is also right, some grading ** does not have leverage when it does not meet specific requirements, but most of the aggressive shares are leveraged.

Not necessarily. For example, Ruihe 300 is now without leverage.

The leverage of buying a graded B share in the secondary market is reflected in the leverage. The formula is:

**Leverage = (Parent**Net Value B Share**) Share leverage, where:

Share leverage = (number of shares of A + number of shares of B) Number of shares of B.

Taking the price and net value of the reform of rich state-owned enterprises B (150210) on July 28, 2015 as an example, the share leverage of this ** is 2 times, **leverage = (times. It means that according to the ****B share of the yuan, every **1% of the net value of the parent ** will theoretically contribute 1%* of income to the B share you bought, and vice versa.