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In 2023, India** will set an eight-year winning streak, with a market capitalization of more than $4 trillion, and from the trend point of view, it will continue to perform strongly.
For the fundamental analysis of India, Jianwen VIP pointed out in the article "India Lying on the Deficit" that there is indeed fundamental support.
However, in addition to the support of fundamentals, it is worth paying attention to the proportion of derivatives trading in India. From the perspective of global horizontal comparison, the ratio of the notional value of derivatives to cash in India** is more than 400%, far exceeding the second place South Korea.
And South Korea** is notoriously high-risk preference. As a country with a small population, South Korea's KOSPI200 index** was once the third largest in the world in terms of trading volume and the largest in the world in terms of options trading volume. And now, in front of India, there is more than one mention at all.
Secondly, the transaction rangeLeveraged trading in India** is still in the process of rapid growth. It shows a growth trend of doubling in one year.
Indian investors prefer leveraged trading, mainly including the following:
Young people gamble stronglyFirst of all, in terms of the population age structure of the whole country of India, it is quite young on the whole, the average age of the national population in India in 2022 is only 28 years old, and the society is in a period of rapid occurrence, but the per capita income is low, and the per capita nominal GDP in 2022 is only 2,400 US dollars.
There are many young people, low incomes, and they want to start growing their wealth. What to do?Then go to ** increase leverage. The risk appetite of young people is higher than that of middle-aged and elderly people.
Whether it was South Korea in 2000 or Japan in 1970, when the proportion of young people was high, it was actually conducive to the rise of market valuation and investment activity.
According to Axis Capital, options trading in India** is able to provide investors with 400x leverage.
And this has attracted a large number of young people in small Indian towns, according to data from a large discount trading platform in India65% of customers are trading for the first time, 60% of new accounts are from small town residents, and the average age is 29 years old.
Top up your faithIndia** is indeed remarkable in terms of performance. Since 2016, the annual line has closed up every year. This is not available in the global mainstream market.
Even if it is as strong as the NASDAQ and has many technology giants, it has also closed down for two years in the same period, in 2018 and 2022. Especially in 2022, the Nasdaq index fell by more than 33%.
WhileIndia's long-term development has also strengthened investors' expectations for the market, and they firmly believe that India is a perpetual motion machine.
Under the strong expectation of **, the information of investors participating in the market game has been deepened.
In particular, small and medium-sized investments generally prefer deep out-of-the-money options. The amount of investment is small, and it can be achieved with small and large.
Rapid penetration of the InternetThe rapid development of the Internet has provided great convenience for options trading. In particular, India, which is already weak in the infrastructure sector, has broken the model of relying on transactions and business halls in the early years.
A large number of rural Indians are able to place orders with a mobile phone. From the perspective of Internet penetration, especially after the outbreak of the new crown epidemic in 2020, India's Internet population has accelerated. During the same period, after 2020, Indian derivatives trading ushered in explosive growth.
It is estimated that by 2024, the Internet population will reach 1.4 billion, achieving "full coverage" in the true sense.
The reality is brutalBut the reality is brutal, options trading as a zero-sum game** is generally loss-making.
According to an analysis by India's official regulator, in the world of options trading, 9 out of 10 traders lost money in the year.
In 2022, the average loss amount of an option losing account is Rs 50,000, which is equivalent to $600. India's GDP per capita is $2,400.
If the basic living expenses are deducted from various taxes and feesIndia's migrant youths have basically given everything they have to India**.
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This article does not constitute personal investment advice, does not represent the views of the platform, the market is risky, investment needs to be cautious, please make independent judgment and decision-making.