Early on Saturday morning, Yuan Fangguo met with Liu Shengyong at the hotel where he was staying.
Liu Shengyong is the one who raises funds, and he is considered a big shot. This time he came not only alone, but also brought two people. One is a trader, and this time the trader is said to be a master in the futures market, the one Liu Shengyong had told Yuan Fangguo about before. The other is equivalent to a fund monitor or risk control. After all, Liu Shengyong holds nearly 10 million yuan of funds from more than a dozen bosses, and it is impossible for him to have complete control over the money alone.
The four of them hurriedly ate breakfast in the hotel restaurant and headed straight to the Erlang Temple Futures Trading Market in the north of Chengdu.
It is called a trading market, but it was just a canteen of a state-owned enterprise. However, after the renovation, the space inside the futures market seems to be more spacious.
Walking into this futures market that had just been put into use, he saw the bustling crowds and the noisy voices inside, like a real super vegetable market. Yuan Fangguo suddenly remembered the scene of seeing football fans welcoming Ma Mingyu at the airport a few days ago.
Futures are standardized contracts based on commodities such as cotton, soybeans, and oil, as well as financial assets such as stocks and bonds. Therefore, the underlying asset can be a commodity such as gold, crude oil, or agricultural products, or a financial instrument. The delivery date for futures contracts is specified in the standardized contract, which can be one week, one month, three months, or even a year from now.
In the capital market, futures are one of the most risky but fastest-growing financial derivatives. Because futures are a zero-sum trade, both the long and short sides must lose, and the magnitude of gains and losses is far greater than other financial products due to the leverage effect of the futures market. The margin requirement for futures trading is typically 10%, meaning a 10% margin can leverage 10 times the trading amount. This explains Liu Shengyong's decision to enter the futures market; the money can sometimes be incredibly lucrative.
Liu Shengyong and his team had discussed with the futures veteran for a long time before, and they decided to invest half of their funds in crude oil futures.
The reason is simple. Oil is a necessity and there is definitely nothing wrong with speculating in oil.
As for the other half of the funds, they plan to wait and see.
Oil, grain, steel, metals... Yuan Fangguo and Liu Shengyong were dazzled by these futures commodities and had no idea where to start with the rest of the funds.
Yuan Fangguo also brought 500,000 yuan of funds with him to trade futures this time. According to the leverage effect of futures, Yuan Fangguo could get 10 times the trading amount in the market.
This was also the first time for him to come into contact with the futures trading model. The reason why he brought in funds was not because he was impulsive, but because he had his own confidence.
However, Yuan Fangguo didn't plan to play for too long. He would stop after one round.
The futures trading market was bustling with people, and naturally there was a lot of information being transmitted. One of the most important pieces of information was from a guy named Heizi from Guangdong Province. It was said that this guy brought hundreds of millions of cash into the Bashu area, intending to drive up the price of local rapeseed. In order to succeed, this guy was even prepared to join forces with Han Laoliu to speculate on the price of rapeseed.
At present, the price of rapeseed in the futures market is basically the same as the spot market price, leaving great room for manipulation.
"Let's speculate on rapeseed together." The futures veteran said with confidence after hearing this.
Liu Shengyong was a little surprised. "Brother, is your information accurate?"
"I've heard this before, too. It's said it'll drive rapeseed prices to new heights. Didn't that guy just now also say that few people know about this news? Let's speculate on rapeseed."
The person who just passed this information to them was a friend of the futures veteran. Because it was extremely confidential, they completed the conversation in a corner. After listening to the analysis of the futures veteran, Liu Shengyong immediately felt that there was a chance. He hesitated for a few seconds and then agreed.
Yuan Fangguo had a different opinion. Although he didn't know much about the futures market, he knew Han Laoliu quite well. This man had the character of a hero. As the saying goes, there can't be two tigers in one mountain, which probably fits Han Laoliu very well.
He felt that Han Laoliu would not cooperate with that Heizi, but would instead give Heizi a severe blow.
Yuan Fangguo had no reason to dissuade Liu Shengyong from doing something that was based solely on feelings. He could only watch them invest the remaining half of their money in speculation.
He did not put all his money into the futures market. He invested 500,000 yuan and bought 5 lots of steel at a price of 0,000 yuan per lot. When Yuan Fangguo bought it, the price had just fallen from 1,000 to 0,000, which was a recent trough.
His prediction was that steel prices would inevitably rise, which seemed difficult at the time as demand in the spot market was already close to saturation.
In the afternoon, the price of rapeseed suddenly rose from 5,000 yuan per lot to 500 yuan per week. Although this meant that Liu Shengyong and his team only made more than 100,000 yuan out of their investment of more than 4 million yuan.
Liu Shengyong suddenly became excited. Faced with such huge profits, he began to feel a little restless.
"Brother, why don't you take action?" Liu Shengyong's voice trembled as he spoke, and his face was full of excitement.
The futures veteran smiled and said, "Lao Liu, this is just the beginning. They're just starting to hype it up. Don't worry. I estimate it will reach 1,000 yuan per ton without any problem. Besides, it's not the rapeseed harvest season right now, so this price increase is normal. Han Laoliu must be working with Heizi on this."
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