The Son of Finance of the Great Age

  Chapter 76 Successfully opened a position

   "It's today!" Zhong Shi, who was far away in Hong Kong, was gearing up for a big fight.

   "No, you still want to continue shorting the RB market?" Andrew came back to his senses with a shocked expression on his face, even a little out of breath. Before Zhong Shi threw away all the empty orders, he thought that Zhong Shi had given up this idea, but now it seems that he did not give up the idea of ​​short selling, but was looking for a better opportunity.

"Look, the RB stock market has been rising for four consecutive days, plus today's high opening, it must be another day of rising, how do you go short?" Andrew held a blueprint of the latest trend of the RB market and poked pointing.

  For Andrew's violent reaction, Zhong Shi didn't take it seriously. In fact, no one can stop his actions now. Knowing this well, Liao Chengde and Zhong Yi shut their mouths wisely, as if turning a blind eye.

"Yes, the RB stock market is rising, but Andrew, have you noticed that the rise has slowed down in the past few days, and it even looks like it's at the end of the battle." Zhong Shi was not annoyed, but instead enlightened Andrew with great interest .

"Uh... I admit that what you said is a bit reasonable. But this does not mean that the RB market will go down in the future, and there is still a great risk in shorting." Andrew looked at the chart carefully for a while, and had to admit that Zhong Shi's words were a little bit reason.

"You are right, but you need to know that the US is a country that will not let anyone seize its supremacy, and will definitely do something about RB. It will not tolerate RB overtaking it in this decade , and the inflated height of the RB economy is caused by it alone, and now I am afraid it will also be punctured by it!"

   "But you can't be sure that it's the nearest, or that it's not around 40,000 o'clock?" Andrew still didn't believe it.

"Okay, let me give you an example!" Zhong Shi slapped his head and said with some hatred, "If I have two Nikkei futures options in my hand, one is bullish and the other is short, I will sell one of my long positions to RB's company, and sell the other to an overseas fund investing in the RB market, what do you think?"

  "The current rise in the RB stock market has strongly stimulated the confidence of local companies. Under such circumstances, they will definitely accept this contract. The question is, why do overseas funds buy short options?" Andrew was a little confused.

"Yes, this will involve research on RB's macroeconomics! In fact, for macroeconomic research, of course international investment banks are the best. Didn't you notice that in recent months, Goodman and Stein Lee company has issued a series of bearish reports on the RB economy, all of which mentioned that RB's real economy is growing rapidly on the surface, but in fact the growth rate is far lower than the growth of the stock market and real estate market, and the gross profit of export trade is declining Excluding the growth of capital gains and real estate prices, the pre-tax profits of these enterprises have been lower than in the 1970s. What does this mean? This shows that the current growth is a false prosperity, and it is actually a bubble!"

"The international fund industry attaches great importance to the analysis reports of these big investment banks. After they analyze the financial statements of the research companies, they will definitely find this fact. So in this case, in order to hedge risks, you think they will How to do it?"

   "Buy the short-term index options issued by the national investment bank!" Andrew's voice lowered, and he finally understood why Zhong Shi was looking for various macroeconomic data and research reports of international investment banks like crazy during this period.

It is impossible for ordinary investors to get these internal research reports that are only provided to large fund companies. On the contrary, what they can get are often reports with opposite opinions. Maybe seven or eight out of ten outflow reports are True, but one or two of the core reports on megatrend analysis are bogus. In this kind of true and false, it is difficult for ordinary investors to distinguish.

   "And then?" Andrew was still a little unwilling.

"It's so simple. Investment banks use this information advantage to sell all the options. While receiving a lot of handling fees, they also have two comparable forces. Now, they have the ability to decide When did you burst this bubble!"

  Zhong Shi smiled faintly, looking a little unpredictable.

"It's now?"

"I don't know. But it should be when these options can be freely circulated in the market. As far as I know, the bankers started selling these options in RB two years ago, and then appeared in Europe, I think, Soon these options will be available on U.S. exchanges."

  Andrew was speechless. He had to admit that once these options could circulate freely, it would deal a heavy blow to the confidence of investors in the RB market.

There is no other reason. A large part of the prosperity of the RB market comes from international hot money. These greedy capitals are always the first to find huge profits, and they are always the first to leave with a lot of profits. A market in crisis.

  When the American investment bank became a member of the RB exchange, the channel for foreign capital has been opened, and a steady stream of speculative funds have swarmed in and joined the RB market.

   Now they are going to backhand short.

   Poor RB people are still kept in the dark that RB's stock market is a real boom and they will replace the US to rule the world economy for the next decade.

   "Issue orders!" Seeing that Andrew was silent, Zhong Shi ordered lightly.

  Actually, Zhong Shi’s rhetoric was far-fetched, but Andrew, who knew the power of investment banks, was successfully deceived. Not only him, but also Liao Chengde and Zhong Yi, who had been pretending to have nothing to do with him, were also frightened.

International investment banks are still just pawns, behind which is actually a contest between countries. Because of innate shortcomings, RB cannot compete with the United States politically. In addition, they are also very worried about this kind of bubble internally. This is done by default to some extent.

  The combination of various factors caused the RB stock market to turn around.

   On the last trading day of 1989, there was not much turmoil. It once rushed to 38957 points, but in the end the Nikkei index rose slightly by 38 points and closed at 38915 points.

  No one realizes that today's highest point will be the highest point that the Nikkei Index can reach in the next twenty years! After this day, the Nikkei index will take a sharp turn, turn around all the way, and even fall below 10,000 points at one point.

What made Zhong Shi get his wish was that his funds successfully established an empty order of 8,000 lots, with an average position price of 40,500 per lot (40,500*500/150*8000/10=108 million US dollars, the margin is one Cheng), spent more than 100 million U.S. dollars, and the remaining tens of millions of U.S. dollars were used as a reserve deposit.

   This is still due to the performance of the RB market. For such an empty order, the bulls accepted it without any hesitation.

In RB, while everyone feels regretful, they are also full of longing for the new year. They all think that in the coming year, the Nikkei index can reach the 40,000 mark as soon as possible. I didn't realize that the crisis was already around me.

Jim and his team can finally breathe a sigh of relief. They can finally not lose money on this day. In fact, losing money every day is like putting them in a frying pan, which makes them feel uncomfortable, although the money is not theirs. my own.

  The next trading day will be January 4, 1990, Thursday, and they have five full days to relax. Everyone didn't want to stay in this ghost place anymore, just like Christmas, almost at the moment of suspension, they packed up their things and prepared to rush to Tokyo, taking the fastest passenger plane to fly out of this country.

  Even Jim and Maxim are no exception.

  On this day, several large investment banks in the United States announced that they will start issuing Nikkei put options on the over-the-counter market (OTC) in January next year.

  The over-the-counter market is a general term for a market that is different from traditional exchanges. There is no need for trading seats here, and it is a market where securities buyers and sellers negotiate face-to-face (electronic, telephone). It has no fixed and centralized trading place, does not adopt a brokerage system, has a wide variety of transactions, and has much looser management than exchanges, so it has a relatively large advantage in transaction amount.

  International major investment banks are taking a fancy to this point, so they issue Nikkei index put options on OTC. Of course, the opponents of this option will definitely not be themselves, but those bullish parties who are full of confidence in the RB market.

   Such news was buried in the joy of the New Year, but it did not escape Zhong Shi's attention.

   "Look, as I said, let's start now!" Looking at the flashing images on the TV screen, Zhong Shi said to Andrew proudly.

What they were watching was the CNBC channel under NBC in the United States, which was still called the Consumer News and Business Channel at the time, not the abbreviation of CNBC. Such an influential TV channel broadcasts global financial news all the time, even the exchange There must be screens all over the place, so that traders can receive new information at any time.

   "It's really like this..."

  Andrew turned his head to look for a while, and gave Zhongshi a thumbs up. This time he was really convinced. For the judgment of the situation, Zhong Shi seemed to have an extraordinary sense of smell, and Andrew regarded this sense of smell as a talent.

At this time, Jim and Maxim who were waiting for their flight at RB International Airport also saw this message. In the noisy waiting hall, two tall Westerners stared blankly at the TV screen, and suddenly sent out There was a strange cry.

   "I see, it turned out to be like this!"

   "Yes! Yes! It turns out that the main battlefield is not here!"

  The two white men hugged each other in full view, shouting frantically, even tears were about to flow out.

   "They can't be gay!"

  A short middle-aged RB man passed by them, muttered something in a low voice, and then left quickly with a suitcase. This person is Iwamoto Kaoru who returned from Singapore.

  Two people who beat you to death on the Singapore Exchange just passed by.

(The protagonist has already appeared in front of the scene. The Christmas battle part has indeed written a lot of space, and there are relatively many professional contents. As for the protagonist who has not appeared in front of him recently, everyone has been waiting a little anxiously. Keep a better balance with the protagonist, and let the protagonist participate in it. In addition, I want to explain that in the next seven days, the second volume of this book will be completely updated. I hope everyone will continue to support and pay more attention, thank you very much!)

  (end of this chapter)