There are two types of discounts: active discounts and passive discounts. Active discounts typically occur when institutions or large investors have made several times the profit and need to cash out within a short period of time. This results in bulk discount transactions. Passive discounts, on the other hand, occur due to various factors that prevent institutions or large investors from considering the return on investment. For example, some large fund companies in the market use the funds from investors to make investments, with a significant portion of the investment capital allocated to stocks. When the fund reaches its redemption period or profit distribution period, the fund company needs sufficient liquidity to repay the investors' funds and profits. If a large portion of the funds is invested in stocks, the fund company needs to cash out quickly, even if it means selling at a discount, in order to meet the redemption obligations. This is one of the reasons why the returns on funds purchased by investors can be unstable.
1.It allows investors to purchase stocks at a price lower than the market value. These stocks can be sold immediately after purchase, providing a relatively stable investment method for investors who have not yet achieved stable high returns on investment.
2.Discounted transactions are conducted after market hours, with fixed transaction prices. This means that costs and profits are controllable, which are crucial factors for profitable trading.
3.Citadel Securities has implemented online trading through an APP platform for discounted transactions. The distribution of discounted orders has also been achieved, splitting bulk trades into smaller orders for faster execution. This provides a stable foundation for the expansion of Citadel Securities' business.
