My Age of Investment

"Our team short-sold 100,000 December futures forward contracts at the 1,400 point level of the S\u0026P 500 Index, using a total of US$7 billion in trading margin, forming a short position of US$35 billion."

"As of yesterday's closing, the S\u0026P 500 index has fallen to 1185.87 points, and our accumulated floating profit is 214.13 points."

"The profit and loss of the S\u0026P index fluctuating by one point is 250 US dollars, multiplied by 214.13 points, and then multiplied by the number of 100,000 futures contracts, so our cumulative floating profit is 5.35325 billion US dollars..."

After Liu Hai finished his report, Jiang Ping took to the stage again and also used PPT to introduce the investment gains of Vision Capital in stock indexes and derivatives over the past half year.

In addition to making more than $5 billion in floating profits on the S\u0026P 500 Index, shorting the Nasdaq and the Dow Jones Index has also yielded fruitful results, with a combined floating profit of more than $6 billion.

“67,238 futures forward contracts were short-sold at the 2602.68 point position of the Nasdaq index, forming a short position of US$17.5 billion based on the use of US$3.5 billion in trading margin.”

"As of yesterday's closing, the Nasdaq index has dropped to 2107.61 points, and our accumulated floating profit is 495.07 points."

"The profit or loss of a one-point fluctuation in Nasdaq futures is US$100, multiplied by 495.07 points, and then multiplied by the number of contracts of 67,238, resulting in a floating profit of US$3.32875 billion."

…

“136,717 medium-sized futures contracts were short-sold at the 12800.18 point position of the Dow Jones Index, and a short position of US$17.5 billion was formed based on the use of US$3.5 billion in trading margin.”

"As of yesterday's closing, the Dow Jones Index has dropped to 10,825.17 points, and our accumulated floating profit is 1,975.01 points."

"The profit or loss of a one-point fluctuation in the mid-cap Dow futures is US$10, multiplied by 1975.01 points, and then multiplied by the number of contracts of 136,717, resulting in a floating profit of US$2.70017 billion."

…

Looking at the groups of trading charts on the screen, the executives all opened their eyes wide.

They thought William Liu was already awesome enough, but it turned out that there was an even more awesome master named Peter Jiang who had just appeared.

Jiang Ping's team invested US$14 billion in shorting the three major stock index futures, with a total floating profit of more than US$11.3 billion.

Liu Hai also invested US$14 billion in shorting financial company stocks, making a total profit of less than US$9.6 billion.

In terms of return rate, Jiang Ping’s team is undoubtedly superior.

However, since the three major stock index futures are all 12-month forward contracts, they will not be delivered until after January next year.

The Liu Hai team has already settled down, and there will be no further disturbances in the investment.

Therefore, the profits from stock index futures can only be called floating profits for the time being.

Then, Jiang Ping introduced and showed the investment situation of the other 6 billion US dollars of the 20 billion US dollars in principal.

That US$6 billion was invested in the three major stock index ETF funds, as well as financial derivatives such as ETF fund put options and the VIX panic index.

The stock index, that is, the stock index itself cannot be directly traded in the market because it is not a stock. Market participants can only make profits by buying and selling "ETF funds that copy and track the rise and fall of the three major stock indexes", or choose to trade stock index futures, and Or choose to trade options based on ETF funds.

For example, the largest ETF that replicates the rise and fall of the S\u0026P 500 is called SPY.

SPY was listed on the New York Stock Exchange in 1993. It is similar to a stock but also takes into account the characteristics of a fund.

Investors can purchase or redeem fund shares from fund management companies, and at the same time, like closed-end funds, they can buy and sell ETF shares in the secondary market at market prices.

\u0026F funds are also called exchange-traded open-end index funds or exchange-traded funds.

When you short-sell SPY, you are also borrowing stocks to sell, or it is more accurate to call it borrowing "shares" to sell.

It is similar to the underlying stock of short selling individual stocks, but the name is slightly different.

In addition, the SPY ETF fund also has a corresponding options market called SPX, where call options and put options can be traded, and investors can freely choose whether they are buyers or sellers.

It is equivalent to a casino that arranges transactions, and the gambling tool is the SPY ETF fund.

The gambling tool of SPY is the S\u0026P 500 Index.

It is equivalent to one trading variety anchoring another trading variety.

In addition, \u0026F funds, short-selling ETF funds, exist.

If the S\u0026P 500 Index rose 1% that day, the \u0026F Fund fell -1%.

There are also inverse ETFs with double leverage. For example, the S\u0026P 500 index rose by 1% on the day, while the inverse ETF funds with double and triple leverage fell by -2% and -3% on the day.

The maximum leverage is three times, and there are also three times long ETF funds in the market.

As a developed financial country, the United States has endless financial innovations (gambling games). Even a stock index can be played to its advantage.

The VIX panic index, also known as Chicago Board Options Exchange volatility, also has its own corresponding financial derivatives, such as futures, options, ETFs, etc.

Each of the subdivided trading varieties can be long or short.

Following Jiang Ping's introduction, everyone learned about the investment and income of these financial derivatives.

With a principal of US$6 billion, it has currently made a total of US$14.6 billion in floating profits.

Similar to the situation of Liu Hai's team, Jiang Ping's team's return on investment in financial derivatives far exceeds traditional conservative investment methods such as shorting stocks and futures.

This is because the design of financial derivatives is more complex, and risks and returns are also directly proportional.

If you are not careful, the principal of 6 billion US dollars will be completely wiped out.

Similarly, in the short term, these high-risk investments can achieve several times the rate of return.

After Jiang Ping finished his introduction, Xia Jingxing nodded with satisfaction.

There is no doubt that Jiang Ping's investment level and trading experience are stronger than Liu Hai.

Therefore, Xia Jingxing handed over the most important, complex and difficult investment to Jiang Ping.

Jiang Ping also lived up to his expectations. In just over half a year, he created a floating profit of nearly US$26 billion with a principal of US$20 billion.

Xia Jingxing commented with a smile: "Very good! I remember that a few months ago we were losing five or six billion US dollars, but we turned defeat into victory so quickly."

Jiang Ping said very modestly: "Without the ballast fund and huge trading margin prepared by the company, we would have been liquidated long ago, let alone turning defeat into victory.

From the beginning of the year to the end of September, U.S. stocks have experienced at least three major rebounds, as well as a small rebound once a week or two.

It is difficult for ordinary small short-selling institutions to support such repeated shocks! "

Xia Jingxing laughed heartily, "Peter, you are so humble. You and your team have done a very good job of controlling risks and positions.

If you had established a short position of one to two hundred billion dollars around the three major stock indexes, we might all be on the rooftop right now. "

Jiang Ping smiled lightly, acting very calmly.

The other executives nodded secretly in their hearts, expressing their approval of Xia Jingxing's words.

Although the boss has an overview of the overall situation and is quite accurate in judging the general trend, bankruptcy is possible.

In the history of finance, there have been cases where traders lost money and defrauded the company.

On the one hand, this is because the internal controls are not rigorous enough and not good enough. On the other hand, there is also the reason why traders have too heavy responsibilities.

After all, the people who actually type out hundreds of billions of trading instructions are traders, not bosses.

After seeing the transcript handed over by Jiang Ping, many senior executives turned to look at Liu Hai.

They were curious about Liu Hai's mood at the moment.

There has been no MD managing director in the New York office. Liu Hai, Jiang Ping and Abel are all ED executive directors.

In other words, the first brother to lead the hedge fund department has not yet been born.

Now the performance of Jiang Ping's team seems to be ahead of Liu Hai's team, so who should be the first brother?

Seeing Jiang Ping's team achieve such a brilliant result, Liu Hai was not jealous or jealous at all, and kept applauding with a smile.

Xia Jingxing also paid attention to the subtle expression on Liu Hai's face, and felt relieved immediately.

Jealousy of the virtuous is definitely unacceptable.

Everyone performs their duties and is responsible for a piece of business. There can be healthy competition, but there must be no stumbling blocks or underhanded tricks.