Reborn in Hong Kong as a Tycoon

Chapter 152 Futures Trading Adjustments
Before deciding how to operate, Lin Baicheng first calculated his current investment in gold futures.

First of all, around November last year at the earliest, I borrowed 11 million US dollars from Goldman Sachs with the shares of Galaxy Games Company. It was originally planned to be used to acquire Wharf. Later, because of the intervention of Li Jiacheng, the acquisition failed, and the money was used to invest in gold. For futures, using 5 times leverage, the cost price of buying at that time was 163 US dollars per ounce.

After that, the principal of Bailong Commercial Association was 1000 million US dollars, using 10 times leverage, and the cost price was 182 US dollars per ounce.

Finally, I just bought it a few days ago. They are Hutchison Whampoa with a principal of 1.5 million US dollars, using 5 times leverage at HSBC, and the cost price is 188 US dollars per ounce; Lin Baicheng’s 5 million US dollars of principal is in Standard Chartered The bank used 188.5 times leverage, and the cost price was US$5/oz; the principal of 189 million US dollars was used at Mitsubishi Bank, and the cost price was US$[-]/oz.

As far as the current situation is concerned, all gold futures orders are profitable on the rise. In the case of using 5 times leverage, at least a dozen points have been earned.

Calculated by the capital of financing leverage, Lin Baicheng invested a total of 23.5 billion US dollars in long gold futures, which is already quite a long position.

Based on the funds of more than 20 billion U.S. dollars, if the price of gold is really adjusted, even if it is only adjusted by 5%, it will be [-] million U.S. dollars, which is not a small sum in any country in this era.

Therefore, Lin Baicheng really couldn't remain indifferent.

"First of all, it must be clear that the long-term trend of gold prices will not change, and the highest in 80 years has broken through 800 US dollars per ounce."

"Therefore, although many institutions believe that the gold price will not break through the $200/oz price and will pull back, this is only a possibility and not 100% certain, so I cannot cancel all long futures orders, let alone You can’t turn them all short. If the price of gold breaks through $200 per ounce this time, but I sell all the shorts, then I will have to lose money, so this is absolutely not advisable.”

"However, there is still the possibility of a callback, and this possibility is not small, so I can't do nothing. After all, a 5% callback will cost me more than 1 million U.S. dollars."

"The general direction of going long remains unchanged, but I need to prevent the losses caused by the correction of the gold price, so it is obvious what to do."

After some thinking, Lin Baicheng made a decision.However, he decided to wait and see what Yuan Tianfan from Xiangjiang had to say. Yuan Tianfan's point of view was also one of the basis for his reference.

In the last test, the buying cost of Yuan Tianfan's group was 0.5 US dollars per ounce lower than that of Anyuan's group. Obviously, Yuan Tianfan's group is more capable.Although it was only US$0.5 per ounce, Yuan Tianfan and the others operated funds of US$7.5 million, which saved Lin Baicheng about US$200 million.

It can be seen that a talented person with strong ability is indeed very important. Although the salary must be higher, the benefits that can be created are also more, which is worth the price.

Nearly an hour after Lin Baicheng contacted Cheng Yufeng, Cheng Yufeng reported the situation to Lin Baicheng.Yuan Tianfan believes that if the price of gold does not touch or break through 200 US dollars per ounce in the next three trading days, there is a great possibility of an adjustment.If there is an adjustment, it is necessary to observe whether it will fall below the price of 180 US dollars per ounce, which was the low point of the previous adjustment. Once it falls below, there will be another wave of decline.

On the contrary, if the price of gold touches or breaks through 200 US dollars per ounce within three trading days, then the possibility of adjustment of the price of gold is not high, but there is more room for upward movement, so you should continue to do more.

In general, make decisions based on the trend and follow the market.

Lin Baicheng has a plan, the futures market is unpredictable, especially at this key price, the short-term changes are extremely fast, so he needs to make arrangements in advance, otherwise, when the gold price chooses a direction, then he can do whatever he wants to do. That's too late.

Because Xiangjiang and Tokyo are in the daytime relationship, Lin Baicheng asked Cheng Yufeng to spend a sum of money to hire Yuan Tianfan as a consultant for a few days, and went to London with Anyuan. Short, also use 5 times leverage to short gold futures.If the gold price breaks through 200 US dollars per ounce, it is natural to continue to do more. If the gold price adjusts first and then breaks through, it is also to continue to do more. As always, use 5 times leverage.

In Tokyo, Lin Baicheng contacted Haruko Mori and asked Haruko Mori to do the same. If there is an adjustment, he will go short, and if there is no adjustment, he will go long.The funds used have always been 1000 million US dollars, 10 times leverage, regardless of long or short.

As for Lin Baicheng's own [-] million US dollars of funds, Lin Baicheng also has arrangements.Among them, the principal of [-] million U.S. dollars using the channels of Standard Chartered and Mitsubishi did not move at all, no matter whether it will be adjusted this time, nothing will be done.

The first [-] million US dollars of funds that used Goldman Sachs channels was to deliver the long futures orders during the day tomorrow, and then the funds were not moved and no operations were performed.

Lin Baicheng generally focuses on long positions, so he only uses part of the funds to short positions, and he is ready to make more at any time.In this way, if the price of gold breaks through 200 US dollars per ounce, he will definitely earn a lot less, but the loss will not be too large, which is acceptable.

And if the price of gold really adjusts, Lin Baicheng will not lose money. He has 8.5 million US dollars of operable funds to short, and he also makes a small profit.Although the untouched US$10 billion has lost money, as long as Lin Baicheng does not sell it, he can still make money when the price of gold rises in the future, and it is just a paper loss in the short term.

The next morning, Lin Baicheng took Isabella to Goldman Sachs, found Wade Thomas, and asked him to arrange for the trader to deliver his futures order, and the funds would be settled first.

Wade Thomas naturally had no objection and arranged for someone to do this.

Lin Baicheng also contacted Phil Smith, and he told Phil Smith that some of his futures orders had been sold and some of them had been left untouched. As for what Phil Smith would do, it had nothing to do with him.

Although it is a futures order of about 195.8 million US dollars, it is not too much in the entire gold futures market, so it took less than two hours to complete the delivery. All futures orders were sold, and the average selling price was 163 US dollars per ounce, compared to the cost price of US$20 per ounce, rose by as much as [-]%.

Lin Baicheng's principal was 5 million US dollars, because Lin Baicheng used 60 times leverage, so his profit this time was [-] million plus more than [-] US dollars.

All the money was temporarily placed in that account and was not transferred out.Because if the settlement is transferred, Lin Baicheng will settle the half-year financing interest with Goldman Sachs. The problem is that there are still about two months before the half-year, and the settlement now is equivalent to a loss. The financing funds have been used for two months less.

What's more, if the settlement is made, Lin Baicheng will have to pay taxes on the profits this time, no matter whether he makes a profit or a loss in his next operation, anyway, he has to pay taxes first if he makes a profit this time.

But if it is not settled, it will not be considered profitable for the time being, so there is no need to pay taxes.If you continue to operate next time, if you lose the profit you made this time, it means that Lin Baicheng has not made any money, and if you make a settlement at that time, you will not have to pay a penny of tax.

Anyway, Lin Baicheng has no place to use this money for the time being, so it is more cost-effective not to settle it first, so he does not make settlement, and puts the money in the account for the time being.

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(End of this chapter)