Extraordinary Genius

Juken Miller, one of the managers of the Quantum Fund, is also one of Soros' four main deputies. He rushed into Soros' office without knocking on the door. At Quantum Fund, he was also one of four people who did not need to knock on the door to enter Soros' office.

“Miller, what's wrong? ”

“Mr. Soros, XX Commercial Bank of Thailand, borrowed a large amount of Thai Baht forward contract, not one of ours. ”

Soros laughed. Did they finally do it? In fact, this Feng, who he really appreciates, thinks that Feng's ability in finance is second only to his four deputies.

Unfortunately, this Feng is from Xiangjiang, and he is a very good person, and will never be his deputy. But to say that Feng can sit flat with him, he doesn't mind either.

That kid doesn't know what luck he's taking, he actually bought so many Microsoft shares, otherwise how can he compare?

“Keep an eye on them and see if they'll work the same way we do.” Soros also wants to see what this Feng can do if he promises to cooperate but doesn't listen to his dispatch.

In the afternoon, he received feedback that a large sum of money had entered the market and bought shares in some Thai banks.

Soros had understood that the other party's modus operandi, like his, was followed by a constant expansion of the debt ratio in various ways.

……

Feng Yu used the borrowed money to buy stocks, buy long-term bonds, etc., basically borrowed as much as he could, bought as much as he could, and then mortgaged these stocks and bonds, borrowed again, and bought stocks and bonds in a cycle.

As a result, $10,000, which can buy hundreds of thousands of dollars in long-term bonds, where the rest of the money comes from, is all borrowed from Thai banks and financial institutions.

“Von, what's going on? Why do we have so many debts?” Kirilenko's a little panicked. Isn't that too much debt?

“It's good to have more debt. What if we throw all these bonds away now?” Feng Yu asked with a smile.

“Ah, throw it all away? Isn't that for sure?” Kirilenko was shocked, wasn't that stupid! We're here to make money, aren't you?

Lennon, chief financial analyst at Kirilenko's request, couldn't keep watching, he cautioned: "Mr. Kirilenko, have you forgotten that we bought a lot of stock index futures before, all sold out? ”

“Shouldn't you? Are we running out of time?” Kirilenko said excitedly, then turned around and asked Feng Yu: “What does Goku mean? ”

Feng Yu and Lennon looked up at the ceiling at the same time. You don't know shit. You were so excited to hear the show!

“Shortfall is when we first sell some stock index futures contracts and then buy them back for delivery, as agreed. And we just have to pay a 10 percent bond, which can also be understood as tenfold leverage. We did ten dollars with one dollar. ”

Kirilenko was still blurred: “Then what? ”

“And then, as you just said, once we sell a lot of bonds, stocks, etc., stocks are bound to fall. Stocks go down, they go down with their fingers, right? ”

“Of course I know that!” Kirilenko glanced at Feng Yu, a pair of "so simple questions, you still come to ask me” look.

“The stock index falls, which in turn stimulates the stock to continue falling, and then forms a vicious circle, with large numbers of shareholders, panic selling and some foreign investors losing confidence in the Thai stock market, thus selling Thai stocks. You see, we sold these futures for ten dollars, and then we didn't have the stock, which is the equivalent of borrowing, and when it dropped to eight dollars, we bought it back, and we gave it back, and then we made a difference of two dollars, ten times the leverage, and we made twenty dollars. That's how our stock index futures sell short contracts make money. ”

“But we lost money before, can this part subsidize back the loss?” Kirilenko remembers what Feng Yu said about not making money in the first two months.

“Can't make it back, but it's not that bad. Mainly because our debt ratio is too high, we lose a lot of money on ordinary bonds and stocks. But don't forget, we also have an instrument, a foreign exchange contract. ”

Kirilenko blinked, this time he saw Feng Yu's angry eyes, very clever without asking questions, waiting for Feng Yu to say it himself.

“A fall in stocks and a fall in stock fingers can make many investors look down on the Thai economy and baht. Think about how we do it when the rubles are devalued.” Feng Yu cautioned.

“I know this, swiftly replace the rubles with dollars!” Kirilenko said excitedly.

Feng Yu nodded and thumbed up at Kirilenko: "That's right, for a more valuable dollar. While reluctant to admit it, it has to be said that the United States dollar is the world's most widely circulated national currency and one of the world's most important foreign currencies. ”

Kirilenko didn't speak with a dark face, and he was unhappy to hear that the dollar was better than the bull, but there was no way, who made the ruble not strong enough?

“Foreign exchange, like stocks, what do you think happens when a certain kind of foreign exchange is sold in large quantities? Like the redemption ratio?” Feng Yu prompted.

The Kirilenko test said: "Reduced exchange rate? ”

Feng Yu cast a praiseworthy look: “Yes, the exchange rate will certainly decline. From 24: 1, it will continue to fall, it will exceed 30: 1, then the value of the dollar will remain unchanged, the Thai baht will devalue. ”

“In that case, our Thai baht contract makes money, right? ”

“Of course, that way, our foreign exchange futures contracts can make a fortune. The devaluation of the Thai baht would cause inflation in Thailand, which would further depress the Thai economy and then further depreciate the share price. What we can make is short stock index futures and foreign exchange futures. ”

“That's not right. We should be able to make a lot of money. How come you don't necessarily make money?” Kirilenko still doesn't understand. Ten times more leverage. How can you not make money?

Lennon explained next to him: "When we sold the baht, we were losing money too. ”

Kirilenko was totally knocked out, lost his money first, and then he could make money, which he couldn't figure out. Forget it, finance is too hard. Not everyone is as proficient as Feng. Dude, as long as you have money, plus a good friend like Feng, you can make money with it.

Feng Yu looked at KiriLenkona's obsessive eyes, and he couldn't explain it. With someone who doesn't know anything about it, he's tried to explain it in plain language, but it's still hard. Of course, this is also relevant to his previous life's work. As a financial broker in a previous life, how can you tell your customers all the details?

There are conditions to hide and not say, there are conditions to say ambiguity, customers will only ask you to operate, if it is as simple as buying and selling food, then who will use their financial broker?

“Brother Ji, you have to know that we're going to lose money on our books over the last few days. You have to calm down. ”

Kirilenko said with dismay, "When did I lose my mind? I said I'd leave it to you. I'll leave it to you. Von, don't you believe me? It doesn't matter if I lose money. I'd love to! ”

Feng Yu turned a white eye. Are you still in a good mood? If you are in a good mood, you will not abandon your hobbies of wine, beauty ~ color, and sit in the office, looking at financial data that you cannot understand at all. Forget it, if he is willing to stay here, he will stay.

……