It Is Said That 99% Of Cotton People Have Lost Their Money. Why Do These Two Companies Cross The Border Business To Make Money?

2018 is a cold winter for the cotton market.

Cotton futures have experienced a sharp rise and fall in recent years, and have continued to decline after entering the new year. After a slight wave of spot, the cotton quality has been steadily downward; the quality of the Xinjiang cotton has improved significantly, but pportation has been in the low level in recent years; the textile enterprises are affected by the Sino US trade war, the order prospect is worrying; the imported cotton is also affected by the trade war, and the sales are light.

There is such a joke that a trader in Qingdao just registered in November 2018 and won 99% of cotton business without business.

Although it is a joke, the difficulty of cotton industry operation is also evident.

However, there are some enterprises whose main business is not cotton, or even do not understand cotton at all. However, they will be able to cope with the downturn in the cotton industry. Not only do they not lose money, but profits are not bad. How do they do it?

It is understood that the Shanghai ramming Business Co., Ltd. (hereinafter referred to as "Shanghai ramming") and Dong Fang run and Capital Management Co., Ltd. (hereinafter referred to as "Dong Xian run run") belong to the "enterprises" mentioned above.

They are all capital companies. Before they cross the cotton trade, they only know how to cotton their clothes and quilts. How can they make money on cotton so quickly?

Xiaobian wants to explore why.

It turned out that their business model is not difficult, just choose good goods to talk about a good price, futures hedging operation, and then choose the appropriate basis for sales, other matters such as paction performance, loan flow matters, all delegated to the national cotton trading market.

Ma Chi, general manager of Dong Fang run and agricultural products department, said that they have avoided the risk of price fluctuation through futures market, and the national cotton trading market has solved the risk of spot performance of quality, weight, in pit and in warehouse. Even if they do not understand cotton, there is no problem in operation, and the profits are heavy.

In fact, to put it simply, two capital companies are carrying out the current paction, making use of the futures market hedging and the performance guarantee of the negotiation paction of the cotton trading market in the whole country.

Here, you know the secret of the success of the two companies' cotton business, and I hope it will help you.