My Age of Investment - Chapter 8 Margin Account

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  Chapter 8 Margin Account

  Is this teaching me to do things?

  Xia Jingxing is a little funny, does this brother want to fool himself or something?

   Liu Hai crackled and said a big deal, and the other party just nodded and didn't speak, which made him feel a little boring.

  If it hadn’t been for the performance this month hadn’t reached the target, he wouldn’t want to drag passersby to talk about the mountains like a clown.

   But no way, think about life, think about the pile of credit card bills, rent and utility bills, he can't lose this job.

  By observing Xia Jingxing’s clothes, he concluded that this brother should be from the mainland, and he is not a very rich one.

  But open an account and deposit 500 US dollars!

  He doesn't dislike it.

  "Manager Liu, I am an international student and have not obtained an SSN account. Can you open an international account?"

  Xia Jingxing couldn't bear to tease this buddy anymore, and directly showed the cards.

  US stocks are divided into domestic accounts and international accounts.

  For mainland investors who open an account with an ID card, the mainland address that is also filled in the account opening information is an international account.

  International students are a bit embarrassed. They have passports and SSN accounts, and they are generally directly classified as “domestic investors”.

  The two accounts are very different.

  International accounts, because China and the United States have a mutual income tax relief agreement, Chinese people speculate in U.S. stocks, and the profit part of the spread is not subject to capital gains tax. Only dividends and dividends need to be paid to the U.S. Revenue Service.

   International students who have not been naturalized in the United States, but have lived in the United States for 183 days within a year, directly become their tax residents.

  International students are required to pay capital gains tax when speculating in US stocks.

  If you hold stocks for more than one year, it is calculated as long-term capital gains, and the tax rate is 15%;

   Less than one year, the short-term capital gains tax rate is 30%.

  And international students who have passports, SSN account numbers and ID cards can selectively apply for US stock international accounts.

  This kind of operation can actually evade tax.

  The premise is that the amount cannot be huge and does not attract the attention of the tax bureau.

  Xia Jingxing did not hold much hope, after all, the tax bureau is well-known, and few companies dare to take advantage of this kind of loopholes.

  Otherwise, not so many brokers would refuse his request just now.

   Liu Hai did not speak, and his expression was more solemn, so he looked at Xia Jingxing repeatedly.

  Should not be an undercover agent sent by IRS?

   "You come with me!"

   Liu Hai put away his hippie smiling face, and solemnly invited Xia Jing to enter the shop.

  Xia Jingxing has a wonderful expression on her face, and she has met professionals.

   entered a reception room, Liu Hai poured a glass of water for Xia Jingxing, and then sat down.

  "Do you really want to open an account to speculate in US stocks?"

   Liu Hai looked at Xia Jingxing very seriously, without letting go of any subtle expressions on the latter's face.

  Seeing the cautious look of the other party, Xia Jingxing actually understood that the IRS is notorious, and there is nothing wrong with being careful.

   "Yes, I'm not kidding."

   Liu Hai thought for a while, and said, "I take the liberty to ask, can you show me your passport and visa?"

  Xia Jingxing looked at her bangs in surprise. Is this going to check her household registration?

   Liu Hai gave a wry smile, knowing that the other party would want to be crooked.

  They have special training within the company, the purpose is to prevent the IRS from catching the little tail.

  It’s just that, it’s inconvenient to explain to Xia Jingxing.

  If Xia Jingxing did not produce his credentials, he would not ask for this performance because he could not take the risk.

   Seeing the other party's solemnity, Xia Jingxing thought for a while, and he took out his passport and visa to the other party. He also had no other tricks.

   Liu Hai took the passport and looked through it carefully.

  Name, gender, nationality, date of birth, place of birth, place of issuance, issuance authority, issuance time and validity period, entry records...None of these key information is missed.

  After reading it, his expression relaxed.

  I have only been in the United States for two days. It should not be an undercover agent, and the transaction can continue.

   "Do you have relatives in the mainland?"

  Xia Jingxing nodded.

  "The best way is to open an account with the information of your relatives in mainland China, open an international account, tax-free."

After confirming that Xia Jingxing was not at risk, Liu Hai became talkative again.

  He explained to Xia Jingxing: “Many Chinese here are speculating in stocks like this. They avoid taxes reasonably, and no one can fault it.”

  Xia Jingxing shook his head fiercely.

  If his mother knew that he had used the money to trade stocks, he might have come to the United States.

   is still too young, parents are always worried if they have not proven themselves.

   Liu Hai pondered for a moment, and then said: "Then, just use your ID card to open an account. Little trouble shouldn't be a big problem.

  If you really receive a tax bill, just pay the tax honestly. "

  Xia Jingxing thought for a while, if he really receives the tax bill, then he can only admit it.

   "That line, wait a moment, I'll prepare the materials for you."

  After finishing speaking, Liu Hai ran out in a hurry, and soon brought a pile of paper materials.

  Xia Jingxing took a look and said: "I don't open a cash account, I want a margin account."

   Liu Hai’s mouth is so open that it’s about to fill a golf ball. Is this a mistake?

  I thought it was a small fish, but I didn’t expect it to be a tiger shark.

  "Brother, the risk of the margin account is not low, and the minimum is $2,000."

   Liu Hai reminded, “If you are a novice, I suggest familiarizing yourself with the market before considering further investment.”

  These words made Xia Jingxing look at the man who was combing the middle point.

  Generally speaking, the income of stockbrokers is linked to the income created for the company.

  Xia Jinghang opens a margin account, which is also known as "margin financing and securities lending" in China, commonly known as "increased leverage", which generates interest income for brokerages.

  The more Xia Jingxing deposits, the stronger the leverage increases, and the more Liu Hai, a stock broker, earns.

  It seems that those who wear traitorous heads are not all bad guys. In the future, people can't be judged by their appearance, it's too superficial.

  "It’s okay. I have considered it clearly and understand some U.S. stock trading rules. You can just follow my requirements."

   Liu Hai nodded, and stopped persuading him, as long as he did his duty to inform.

  After completing the account opening information, Liu Hai began to ask Xia Jingxing how to deposit funds? Do you have a U.S. bank card?

  Xia Jingxing answered one by one.

   "Mr. Xia, how much do you plan to deposit?"

  Liu Hai stopped screaming one by one, and started talking about business.

  "35,000 US dollars, how much can you fund?"

  Xia Jingxing raised her eyelids and asked.

   Liu Hai did not appear to be particularly surprised. After all, this old man has to increase leverage. It is not very outrageous to take tens of thousands of dollars to play in the stock market.

  "In response to your situation, our First Securities can provide a 1:1 allocation."

  Xia Jingxing nodded, "Yes, enough."

  He only knows the long-term trend of NetEase's stock price, and the specific monthly and daily trend is really unknown.

   Come to the highest leverage of 5 times, and if the position falls by more than 20%, the position will be liquidated, and you will cry without tears.

  2 times leverage, as long as NetEase’s stock price does not fall below $1 again, there is no risk of liquidation.

  The first pot of gold still has to be steady, and cannot be squandered, because there is no squandering capital.

  Family can give him the support, it’s just this one, so be sure to grasp it.

  "The annual interest rate of financing is 6%, and the interest is calculated on a daily basis."

   Liu Hai introduced the warning line, the liquidation line, and the various rules of margin account trading in detail to Xia Jingxing.

   Liu Hai brought a laptop computer to teach Xia Jingxing how to use the computer to operate stock trading.

  "Because our company was founded by Chinese, it has a Chinese interface and a Chinese customer service. This is also a major feature of our company."

  Xia Jingxing nodded.

  In his previous life, he had also heard of the big man surnamed Liu. He had worked as executives at Merrill Lynch and Salomon. In 1985, he founded First Securities on his own and has a great reputation among Chinese investors and the community.

   is a character!

  "The website of our company is Firstrade.com, which was launched in 1997.

  At the time, even the major major brokerage firms in the United States still had their own websites. "

   Liu Hai said with pride: “We are definitely the pioneers of the nation’s financial industry, the first to integrate network technology.

  In the past, traditional brokers used to trade by telephone and place orders manually, and we can directly implement online transactions. "

  Xia Jingxing coughed, this man talked too much.

   Liu Hai smiled, realizing that he had committed an old problem again, and quickly focused on the operation of the website.

  (End of this chapter)

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