Operation mode of foreign exchange investment company

Foreign exchange investment companies were established with state approval and capital injection, so they were state-owned at birth; But it is different from the general foreign exchange administration, but a for-profit company, shouldering the heavy responsibility of maintaining and increasing the value of huge foreign exchange assets. How to overcome some inherent disadvantages of state-owned enterprises and adopt professional and market-oriented management mode to maximize the income of foreign exchange assets is a severe challenge they face.

As the core business of Huitong Investment Co., Ltd. is to invest in foreign financial portfolios, it is foreseeable that its future competitors will be institutional investors who are well-trained in the international financial market. In such a fiercely competitive market environment, if we still adhere to the backward management system of state-owned enterprises and stick to the traditional governance structure, the consequences will be unimaginable. This is not only related to the survival and security of an enterprise, but also related to China's financial security.

The past CNOOC incident warned us that the disadvantages of bureaucratic system operation are arbitrary decision-making, vague responsibility and inability to cope with market risks; Once risks occur, some officials often think of responsibility first, rather than quickly finding out the countermeasures to deal with market risks. Therefore, a huge financial company like the State Foreign Exchange Investment Corporation cannot make decisions only by personal courage and boldness, but by scientific and market-oriented management mode. Foreign exchange investment companies need a group of high-quality talents who are familiar with national policies and investment technology. Playing games in the international investment market requires extremely high professional quality, solid research foundation and rich operational experience, as well as outstanding abilities such as understanding investment, keen judgment on the market and superhuman psychological endurance. In addition, good personal integrity and professional ethics are also essential.

In foreign countries, being an investment manager requires a strict professional qualification examination. On this basis, it often takes 5 to 10 years to train an excellent investment manager. On the other hand, in China, most investment managers are not familiar with the operating rules of the international investment market, do not understand the frontier innovation of the international investment market, and lack practical experience in operating the international investment market. It is conceivable that once these people enter the international investment market, they will inevitably become the prey of being rounded up in the face of countless financial predators who have experienced in the capital market.

Therefore, in order to make professional investment in the international financial market, we must face the world and recruit real market traders for professional operation, with emphasis on the investment elites in new york and London. The biggest difference between them and domestic investors is that they can stand at a strategic height and consider the development prospects and investment value of the invested projects from a long-term perspective. Once their judgment is confirmed, they can really stick to it.

First of all, they will pay great attention to controlling the turnover rate of the portfolio, make full investments, and ask them to maintain a high proportion of positions at all times; Secondly, their investment will follow strict operating procedures, and any trading behavior will have clear reasons and prior investment plans; Thirdly, their investment is very rational and rarely has personal feelings. For example, they will never exchange shares on impulse. Only when the selected shares reach the expected price and there are better listed companies in the industry will they choose to ship.

The premise of recruiting such people is to provide competitive treatment. It is reported that top traders on Wall Street earn millions of dollars a year. Of course, to give full play to the role of introducing investment elites, not only generous treatment is needed, but also strict assessment system and laws and regulations are essential.

It is impossible to change the situation of talent shortage in a short time. Even if some professionals are recruited, it is impossible to immediately be able to engage in certain transactions alone. In this case, except for investment projects such as purchasing fixed-income securities, most of the funds can be entrusted to international institutions for investment and operation through outsourcing. For investment companies, risk control is very important, including liquidity risk, operational risk, legal risk and national risk.

First of all, liquidity risk is a big obstacle for investment companies, which is hardly mentioned in domestic discussions.

With a huge capital of $200 billion, its every move in the international investment market will attract people's attention. It should be noted that investing 654.38 million yuan in the stock market is completely different from investing 1 billion yuan. Buying $654.38 billion securities will basically not affect the stock price, but the process of buying $654.38 billion securities may push the price up all the way. This kind of investment is not only hidden, but also difficult to operate, and it is even more difficult to ship in the market. It is for this reason that successful large funds will not accept new subscriptions after reaching a certain scale.

Therefore, the amount of funds determines that it must establish a portfolio with independent investment strategies through various funds. It can be seen that its requirements for liquidity are sometimes more important than the rate of return.

Secondly, operational risk is also a risk that cannot be ignored in investment, especially how to control the risk in entrusted investment will be an important research topic for risk management departments.

Then we must pay attention to legal risks. Due to the large scale of operation, it is likely to collide with many rules of the international financial market. If it is not handled properly, it will easily lead to doubts such as "manipulating the market".

The Foreign Exchange Investment Center of the State Administration of Foreign Exchange is an overseas investment institution representing national sovereignty. Even if there are violations and manipulations, the local regulatory authorities will only condemn them at most, and will not punish them. If there are irregularities and manipulations, it may trigger the local regulatory authorities to take substantial penalties, including freezing assets.

In addition to the above risks, we should pay special attention to the control of national risks, because it represents national investment and is easily blocked by political factors.

1, a stable trading platform

It is very important to do foreign exchange margin trading. Whether the platform is stable or not is because of foreign servers or domestic networks. Either way, platform instability is bad for customers. The GTS and MT4 systems of FXSOL almost never go offline, and the quotation is synchronized with the international market. Because the platform is stable, there are no restrictions on "scalp" or normal short-term trading, and there are no additional restrictions on trading when major market news is released.

2, mobile stop loss function

This function is very practical. You can set a moving stop loss whether you open a position or reserve a order. Moving a stop loss is actually winning, and the stop loss price just moves in a favorable direction. Coupled with the management of stop loss and limit price, a perfect command combination can be constructed, which is especially suitable for system traders or investors who can't stare at the market all day. This function is executed on the server side, so it doesn't matter if you turn it off after setting the instructions.

3. Hedging function (some platforms call it lock order)

Using the hedging function, you can open a new reverse position with the same number as the existing position without occupying the margin, thus locking in the loss. This is what we often call a "lock order". To unlock it, we just need to level any position. In fact, the practice of locking orders is the same as choosing a new position, but it is easier to operate than the latter, which is very suitable for novices.

4. Super Chinese chart function

Although the chart function of GTS system is not as flexible and intelligent as MT4, it already has the basic advantages of MT4. This is very rare when the foreign exchange trading platform has strong trading function and weak chart function. In addition, FXSOL recently added advanced charting tools, which are installed and used separately as plug-ins.

5.C.A.R function

This function is to open a new position with the same reverse amount after closing the original position, which is convenient to grasp the fleeting market and the best price that sometimes appears in the market.

6. Flexible trading units

The size of the trading contract can be self-determined, and the minimum is 1K (that is, the minimum operation is 0.0 1 lot, and the minimum operation of other platforms is 0. 1 lot, which is convenient for novices to control risks), so that investors with less funds can start with small transactions without taking too much risks from the beginning. After stabilizing the profit, gradually increase the warehouse volume and change the contract scale. In addition, it is very convenient to change the contract scale and leverage ratio at any time on the platform.

7. Batch clearing function

There are two meanings. First, when the market price is closed, only a part of the order can be closed. On the contrary, each order, including pending orders, can set a maximum of five limit and stop losses.

8. You can open additional accounts.

The additional account exists on the basis of the main account. The advantage of opening this account is that you can choose a different contract size and transaction leverage from the main account, and the funds can be transferred with the main account, which is also convenient to control the risk of a single account.

9. Services are close to users.

Because it is a self-developed trading platform, the company will add some practical functions from time to time according to the needs of users.