July 16th.
Chen Dong and his group took a flight from Hong Kong back to the island nation.
In just a few days, the global financial markets experienced a mini bull market.
Long queues were seen at major stock exchanges.
Against this backdrop.
On the 16th, the Nikkei 255 index opened 0.9 points higher, 33.5 points higher than the previous day's closing price, and closed at 0.7 points, a gain of 377.36 points, or +1.16%.
The international crude oil market also followed suit, with prices rising continuously driven by capital inflows.
As of 2 p.m., the international crude oil price was $18.76, up $0.40 for the day.
The global economic situation appears to be very good, with prices rising across the board.
However, few people can understand the underlying logic behind the price increase.
There's a saying in the stock market: "When even the vegetable vendors are discussing stocks with you, the market has likely peaked."
The rebound of the Nikkei 255 index is attributed to manipulation by island nation conglomerates.
The goal was to make the island nation people take the fall, while their funds were quietly fleeing from beginning to end.
Inside the Tokyo Stock Exchange.
The closing of the island nation's stock market also signifies the end of the day's trading.
at this time.
Chen Dong's account held a total of 2,000 standard lots of long positions in Nikkei 255 stock index futures contracts.
These long contracts initially cost a total of $40.658 million, with an average position size of [number] points.
The Nikkei 255 stock index futures use 100x leverage.
in other words.
For every fluctuation of ±5 points in the Nikkei 255 index, the unrealized profit or loss will reach $652,700.
Based on the closing price of the island nation's stock market on the 16th.
The stock index futures account has a total unrealized profit of 1,532 points, which, excluding odd amounts, amounts to a total unrealized profit of $200 million.
That's equivalent to your principal increasing fivefold!
Stock accounts, on the other hand, can be closed out quickly due to factors such as taking a long position in the opposite direction.
The recent rebound in the island nation's stock market has not only resulted in no losses, but has also brought substantial gains during this upward trend.
The stocks with the largest gains were all constituents of the Nikkei index, also known as weighted stocks.
June 26th - July 16th.
Excluding the days when the market is closed on weekends, there are a total of 15 trading days.
The island nation's stock market has rebounded from a low of 0.2 points to the current 0.7 points, a total rebound of 33%.
Chen Dong and others bought only constituent stocks, and their overall return was 42%, outperforming the market by 9%.
The stock market index of the island nation is a graph composed of 255 constituent stocks, arranged according to their market capitalization, percentage of shares, and price fluctuations.
Chen Dong bought stocks that were constituents of the broader market, and since the broader market had risen by 33%, a combined gain of 42% was to be expected.
Chen Dong clapped his hands and said loudly.
"Tomorrow, everyone's main task is to close out their positions."
"Lu Zeng will be in charge of the stock market. Remember, follow the previous strategy and close out positions in batches without letting outsiders notice."
"Okay, boss."
Lu Zeng nodded without asking why.
The financial market is the most brutal and realistic place.
Here, the strong are respected, and the weak must obey unconditionally.
“Wangcai, your job is the same as theirs: to hedge all the long positions in our stock index futures contracts.”
"clear!"
Wangcai answered very readily.
Upon seeing this!
Chen Dong nodded in satisfaction and said with a smile.
"I've been away from the island nation for a while, and everyone has worked hard."
"After we've packed up, I'll treat everyone to a big meal and distribute the bonuses while we're at it."
The words had barely left his mouth.
A huge look of surprise appeared on everyone's faces, and they shouted in unison.
"Thank you, boss!"
"Long live the boss!"
"......"
Everyone was very happy to hear Chen Dong say that he would give out bonuses.
Previously, HK$800 million was used to borrow a large amount of stock from a securities firm in an island country for short selling.
Once the price drops, buy back the sold shares according to the number sold and return them to the brokerage firm.
The difference between the two prices, after deducting the brokerage firm's interest, is the profit.
In the previous round, due to entering the market late, although it seemed like there was a lot of activity, the overall returns on stocks were not high.
8.4% of HK$800 million, which is HK$67.2 million.
This time, the strategy shifted from short to long positions, increasing funds from HK$800 million to HK$860 million, with a return rate of 42% and a floating profit of HK$361 million.
Importantly, these profits have nothing to do with HSBC.
According to the performance-based agreement that Chen Dong signed with HSBC.
As long as the profit exceeds 25%, any excess profit, whether more or less, belongs to Chen Dong personally.
Since these profits belong to Chen Dong personally, then according to industry practice...
Three-thousandths of the profits will be distributed as team bonuses.
HK$361 million translates to 1.08 million.
On average, each person receives a dividend of over HK$100,000, which is quite a lot.
It is now 1990, and the average annual income of the middle class in Hong Kong is between HK$40,000 and HK$60,000.
A sum of over 100,000 Hong Kong dollars is already twice the average annual income of the middle class in Hong Kong.
As for Wangcai, even if Chen Dong offered him a share of the profits, he wouldn't agree.
He's not stupid. Wouldn't it be better to let the dividends snowball in Chen Dong's account?
How much money do these traders actually get?
That's probably just a fraction of Wangcai's income.
......
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