I can get rich by brushing my emotions

Chapter 194 Shorting the British Pound with 20x Leverage

April 8, 10:09 am.

Sunlight came in from the window, casually sprinkled on Yuan Ze's handsome face with sharp edges and corners, and he was drinking coffee comfortably.

At this moment, there was a knock on the door, and Yuan Ze put down his coffee cup to let people in.

The next second, Qiao Shuang, who walked in a weird posture, hurried into the office with a laptop in her arms.

She didn't know whether it was because the ground was too slippery or her feet were weak, but when she walked to Yuan Ze's side, she suddenly tilted and was about to fall to the ground.

Seeing this, Yuan Ze quickly supported her, frowned and said, "Why are you in such a hurry? Slow down, you were given a holiday today to rest, and you insisted on coming to work."

Qiao Shuang's cheeks were slightly hot and said: "You still have to go to work. You can't let your personal life affect your work. Besides, I'm fine."

Although after fooling around with Yuan Ze last night, I don't have any strength in my body now, my waist is sore and my legs are weak, and my spirit is still extremely tired.

But Qiao Shuang saw that he was refreshed and he was fine, so she still pulled herself together and followed him to work.

Yuan Ze glanced at her somewhat red knees, then at her tired pretty face, and said speechlessly:
"Is there anything you know in your heart, what is my physique and what is your physique? If you have to compare with me, I don't even bother to talk about you. Forget it, let's get down to business. What's wrong with coming here in such a hurry?"

At this time, it is necessary to borrow GBP worth 20 U.S. dollars through the DBS Bank's foreign exchange trading system to agree on interest from major financial institutions (banks, dealers, and brokers) engaged in foreign exchange trading.

"Is it DBS Bank's own foreign exchange trading software? Don't make a mistake." Yuan Ze said.

However, it is the time of the Asian market, and Europe and the United States are still playing cards and sleeping hard. The GBP/USD trading is not active, Yuan Ze is also doing it leisurely, and the speed of building positions is not fast.

Yuan Ze tapped on the keyboard, narrowed his eyes and said, "Wait, wait, the exchange rate of GBP/USD above 1.22 seems to be high enough now. Even if it can continue to rise, how much can it continue to rise? Can it rise to 1.24?" , 1.25? Or 1.30?"

Well, the current regulations are like this, and it is not clear whether they will be changed in the future. Anyway, it is not uncommon to see changes in our land.

The first, of course, is that the trend for GBP/USD must be down.

"You can't do anything wrong!" Yuan Ze nodded in satisfaction.

Then, sell the 16.39 pounds and exchange them for dollars.

Except for weekends and holidays, its trading hours are available 24 hours a day.

In the first two days of this week, the GBP/USD exchange rate fluctuated between 1.20 and 1.21, without much fluctuation.

It's not his fault, it's something that can't be helped.

Yuan Ze said: "Look, according to our leverage of 20 times, GBP/USD will not be liquidated until 1.26575. Is it possible for this wave to rise so high?"

At that time, the U.S. dollar will strengthen, and currencies around the world will depreciate, and the British pound will certainly be no exception. "

In the foreign exchange market, there are some well-known trading platforms, such as MT4.

Yuan Ze didn't intend to hide it from her, he nodded and said, "That's right, our next goal is GBP/USD, short it and try to get a bite out of it!"

Qiao Shuang hurriedly put the laptop on the table, opened it, and said:

You can place 500 orders at a time, which is undoubtedly very convenient for investors with large funds like Yuan Ze.

"The GBP/USD exchange rate is 1.2205, which actually rose by 1.1%..."

However, if you use it directly, you will first pay 25% of the corporate income tax, and then pay 20% of the personal income tax, and even other taxes.

For example, if Yuan Ze has US$1 on hand as an example, if he wants to short GBP/USD with 20 times leverage.

This kind of loan relationship is a private loan, which is legal and compliant, and it can be returned at that time.It is only illegal to default on repayment.

"That's up to you." Yuan Ze ignored her and continued to trade on GBP/USD...

Qiao Shuang picked up the calculator on Yuan Ze's desk and pressed it, and then replied, "It's about 1.64%."

With the mouse in hand, Yuan Ze first clicked to look at the current exchange rates of major currencies around the world, and then set his sights on the target currency pair.

Soon, I downloaded and installed the foreign exchange trading software of DBS Bank, and successfully logged in to the foreign exchange trading page of the software.

Yuan Ze said again: "Then do the math, how much does it take to increase from 1.22 to 1.24?"

"Short? But I think GBP/USD is rising today, and the momentum looks very strong. There is a clear tendency to attack the high point of 8 on August 1. Once it breaks through, it should rise for a few days, right? I It feels a bit dangerous to be short at this node."

At that time, get some money from the country, or take something to mortgage, add some margin, reduce the risk, and just raise the forced liquidation line.

Qiao Shuang shook her head: "1.30 is absolutely impossible. It means that the pound is obviously stronger and the dollar is weaker. The current economic situation in the UK does not support a sharp strengthening of the pound. I think 1.25 is also a little bit hanging, but 1.24 is hard to say."

However, he did not combine these two loans, but calculated them separately and sorted them out one by one to avoid confusion.

Qiao Shuang's eyes moved slightly: "Boss Yuan, what do you mean..."

Although there are restrictions, it is much more generous than those foreign exchange trading platforms with a maximum lot size of only 10 or 20 lots.

After receiving the link from Qiao Shuang, he quickly started to operate the computer with six screens on his desk.

This time period belongs to the opening period of the Tokyo foreign exchange market in Neon Country, mainly trading the Japanese yen, while the trading varieties are concentrated on the US dollar/yen and the euro/yen.

However, some people are greedy, and they pull the leverage to one hundred times, two hundred times, or even five hundred times, hoping to make a big fortune with a small amount.

If the GBP/USD exchange rate really breaks through the previous high in the next few days and rebounds significantly, then in just over a month, it may not be able to form a downward trend of more than ten points. After all, this is The foreign exchange market is not the stock market.

However, since he was using the God's perspective, Yuan Ze knew very well that this inflection point would probably come soon.

Qiao Shuang replied: "After the position is full, if it rises to 3.75%, the position will be forced to close. I calculate, if the position is calculated according to 1.22, it will be about 1.26575."

As he said that, a smile appeared on Yuan Ze's face: "Don't talk about 1.26575, I see, it's hard to reach 1.24 in this wave, and even whether it can break the high point of 8 on August 1 that you mentioned is a question. Unknown."

Because of regulations, individuals only have a foreign exchange quota of 5 U.S. dollars per year. Yuan Ze can only use this method if he wants to transfer out the 5700 million RMB in a short time.

At this time, Yuan Ze only needs to spend 18.36 US dollars to buy back the 16.39 pounds he borrowed before, and repay the currency to close the position.

Anyway, even if the prediction is wrong and the position is full, he will not wait for DBS to force the position to be liquidated.

Yuan Ze said: "Then what is the forced liquidation line after our position is full?"

"I just received a notification from DBS Bank that they have prepared a foreign exchange credit account with a maximum leverage of 20 times."

Qiao Shuang nodded slightly. She could understand what Yuan Ze meant, and she asked, "Then should we choose to open a position and sell short now, or should we wait a few days?"

Of course, when Yuan Ze acquired the 30% equity of Baitian Technology Company, in addition to raising money to expand capital, Yuan Ze also lent hundreds of millions of RMB to Yuanlai to invest in the company. He still owes him hundreds of millions of money.

Yuan Ze smiled and said: "Yes, now the whole world knows that the Federal Reserve will raise interest rates in September and November, and the dollar will rise next, but there are still people going long today. Is this purely bullish on the pound?"

Yuan Ze said: "Don't just look at the next few days, you can extend the timeline a bit, one month, two months?"

Of course, for transactions of different currencies, the scoring time period, and the transaction activity at different times vary greatly.

It is also the same reason to go long USD/GBP in the opposite direction. They all borrow pounds, buy dollars, wait for the pound to depreciate, and then repay the pound to earn the difference.

However, through the future news, Yuan Ze knew very well that the future trend of GBP/USD is an inevitable trend.

The frozen 5700 million RMB was converted into equivalent U.S. dollars and put into Yuan Ze's overseas DBS bank account, and finally got together 4 million U.S. dollars.

Therefore, Yuan Ze felt that there was nothing to worry about.

And today's sudden increase of more than one point can just make these greedy guys directly liquidate their positions.

In the foreign exchange trading system of DBS Bank, the maximum number of hands in a single transaction for the GBP/USD variety is 500 hands.

In the foreign exchange market, based on the exchange rate of 1.22, it takes 1 US dollars to trade 12.2 lot of GBP/USD without leverage.With 20 times leverage, only a deposit of $6100 is required.

Qiao Shuang was startled, her bright eyes flickered, she thought for a while, and replied, "If the timeline is prolonged, I personally think that GBP/USD will go lower in the future, because in September and November this year, the Fed has The expectation of raising interest rates exists.

Therefore, DBS Bank's foreign exchange trading system is also connected to the MT4 server, and through the MT4 clearing bridge, it connects with global foreign exchange liquidity providers to achieve fast foreign exchange transactions.

This transaction link seems to be very simple, but in this link, there are two most important key points.

Different from stock trading, in addition to being more liquid, foreign exchange trading is also very different from stock trading at the transaction level.

If there is no fluctuation and price difference, after these pounds are sold, exactly 20 US dollars can be recovered.

After coming and going, nearly 50% of the money was lost.

There was no other way, so Yuan Ze had no choice but to use borrowing to avoid tax reasonably.

For a major client from mainland China like Yuan Ze, they would never dare to cheat him, otherwise, once the incident happens, the entire credit system of DBS Bank will collapse, Swiss Bank will be a lesson from the past, and the loss will be hundreds of billions of dollars of.

Qiao Shuang tapped the laptop a few times while talking, and said, "Also, through this link, you can download the foreign exchange trading software of DBS Bank, and I sent it to you."

Yuan Ze glanced at it twice, showing surprise.

Although Qiao Shuang knew that Yuan Ze was going to speculate in foreign exchange next, she didn't know exactly how to speculate and which one to speculate in.

If you do this short, you can earn the price difference. If the trend is upward, there will be losses, or even liquidation.

"Yes, the president of DBS Bank's Huaxia District personally called to inform me that the deposit can be transferred at any time for operation."

Because, from today, August 8, to September 10, there is only more than a month.

As for China, there is no foreign exchange market at present, and we dare not easily set up a foreign exchange market, because the complexity of the domestic financial market is less than 5% of that of Wall Street, and we lack sufficient understanding of the financial industry and insufficient financial background. The world's financial giants hang up to draw blood, so they can't mess around.

Since everyone thinks that the U.S. dollar will strengthen and other currencies will depreciate, there must be many people who are shorting and want to make a fortune.

In order to collect the 4 million US dollars of funds, Yuan Ze did not plan to use the money in the domestic bank account, so he came to a sister-in-law to operate.

After clicking on the status of opening the credit account, Yuan Ze went to the transaction page.

In fact, MT4 is similar to the domestic Flush. It does not have the functions of banks and brokers, and only provides trading services.

This company was originally his personal wallet, and all the money he earned from working with Kang Lei and Hu Xu before was transferred into it, so he could dispose of it at will.

While the two were talking, all the 4 million US dollars in Yuan Ze's bank card had been transferred to the credit account of DBS Bank.

After a while, the pound depreciated against the dollar, and the GBP/USD exchange rate fell to 1.12.

To put it simply, his short-selling behavior this time is actually to expect the pound to depreciate, borrow pounds from banks and other institutions, and buy dollars.When the pound depreciates, the dollars can be exchanged for more pounds, making the difference.

In terms of time, the foreign exchange market is a global financial market.

Therefore, for him, the more the GBP/USD rises now, as long as he seizes the opportunity to build a position and manages the risk of liquidation, then the more profit he can get.

Yuan Ze glanced at the table, and said slowly: "If I'm not wrong, today's rise should be a sudden sell-off before the fall.

At this moment, Qiao Shuang, who was sitting on the chair next to Yuan Ze, stared at his screen and asked, "Mr. Yuan, which currency are we going to do? GBP/USD?"

Of course, it may also be the lure before the fall..."

For example, yesterday's closing price was only 1.2072, but I didn't expect that it would suddenly break through 1.22 today, an increase of more than one point.

After closing the position, the remaining US$1.64 in the account was the profit he earned from short selling.

"The funds have arrived, so we can start." Yuan Ze rubbed his hands together.

Qiao Shuang cheered up immediately after hearing the words, shook her head and said, "It's okay, I'm not sleepy, I want to see how you operate, and learn the technique from you."

While Yuan Ze was manipulating the transaction, he glanced at Qiao Shuang from the corner of his eye, saw that she was yawning, and said to her, "If you're sleepy, go and rest by yourself."

Qiao Shuang turned on her computer, looked at it carefully, and said:

Because not every stock in the stock market can borrow coupons, and not every stock has a large number of coupons to borrow.

As the largest commercial bank in Singapore and even in Southeast Asia, DBS Bank manages a huge amount of assets, and its security is at the forefront of the world, with excellent reputation.

"I called DBS Bank just now to check twice. There is no problem, and the whole process was recorded." Qiao Shuang replied.

After borrowing the 5700 million RMB from Yuanlai Investment Company, Yuan Ze handed over the 5700 million RMB to DBS Bank's domestic branch through DBS Bank's VIP foreign exchange purchase business to freeze it for safekeeping.

Although it seems that GBP/USD will not fall below 1.20.

Yuan Ze’s current short selling on GBP/USD can also be regarded as long USD/GBP trading.

After fully pulling the benchmark leverage to 20 times, he directly shorted the GBP/USD exchange rate through DBS Bank's foreign exchange trading system.

As long as GBP/USD hits an inflection point and starts to go downhill, he can fight hard.

Based on the current GBP/USD exchange rate of 1.22, 1 GBP=1.22 USD, about 16.39 GBP can be borrowed.

In the stock market, this would be a difficult problem.

First, as the controlling shareholder, he borrowed 5700 million yuan from Yuanlai Investment Company, with an agreed annual interest rate of 1%.

However, because MT4 is an international third-party foreign exchange trading software, it is very professional. At present, 90% of foreign exchange futures investors in the world are using MT4 software for trading.

The second is to borrow sterling. There must be a financial institution that lends sterling to Yuan Ze, otherwise there is no way to short it.

"Oh? Is it ready?"

But in the foreign exchange market, this situation will no longer be a problem.

Especially for the currency that is actively traded like GBP/USD, there will be no situation where there is no currency to borrow.

Not to mention the large amount of British pounds accumulated by daily short-term opponents for speculative arbitrage.

The major banking institutions that store pounds are more than happy to lend them out.

Of course, you have to give them a certain amount of interest.


Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like