America 1979

Chapter 59 I choose to be short
After negotiating the brokerage contract, the rest of the work can be approached with trader Andrew, but in order to show his importance, Raymond chose to accompany Bill to analyze the market with Andrew.

"Just in the first three trading days of this week, silver futures and spot prices both broke through the $45 an ounce mark. While I feel sorry for you selling those three futures contracts at $38, it's still a good time to buy It is a good time to enter silver futures."

Andrew took out a small book from nowhere, opened it and began to introduce the changes in silver prices to Bill.

"It's not necessary to be sorry. I think Mr. Ferrari must have his own ideas in his bold actions. Maybe he has other considerations."

Raymond lifted his office chair, sat next to the client, and took out a small notebook.

Bill looked at the movements of the two people, spread his hands and asked, "Silver has risen to an unprecedented height, what about the price of gold? I want to know the price fluctuations in the past two years."

gold?

Andrew and Raymond glanced at each other, and under the gesture of the latter, the trader turned to another page and began to introduce gold futures.

"Since President Nixon announced the termination of the dollar-gold peg in 71, the Bretton Woods system gradually disintegrated, and the price of gold rose from $42 an ounce in 240 to $1980 an ounce in 630. Then it slowed down in the past two years It rose until it entered [-], and in the first two trading days of this month, the price of gold reached a high of $[-]. This round of bull market is still going on, and we at Hilson believe that gold is bullish in the long run.”

Raymond raised his legs and leaned on the back of the chair, "Yes, gold is in a big bull market. Although the increase is not as exaggerated as silver in the past eighteen months, it is still worth investing in. If Mr. Bill wants to buy gold futures, My advice is to go long and hold for the long term.”

To be long is to think that the price of gold will rise, and to make money by buying at low prices and selling at high prices.

But Bill didn't want to do that.

"What was the price of NYMEX gold futures at the close yesterday? Is there any good news recently?"

He raised two questions and hoped that these two professionals would answer them.

Andrew is still flipping through the book, and Raymond has already answered the second question: "In the past few trading days, Treasury Secretary Miller announced that the Treasury Department will no longer sell gold, which made the price of gold break through the $[-] an ounce mark that day. It's probably the strongest positive we've seen in recent times."

"The NYMEX gold futures closed at 760 dollars an ounce yesterday." Andrew finally found the information the customer wanted to ask.

Bill asked again: "What did you say was the price of gold two years ago?"

"In March 78, it was $220 an ounce, and in May of [-], it broke through the $[-] mark."

Mr. Ferrari looked at Raymond who was on the side, "Your traders are really responsible. Andrew, please remember that this afternoon, there were more than 770 US dollars in the account for buying gold futures at 23 US dollars. I will transfer more than 9000 yuan to make up 1 yuan. Even if you lock up 25 US dollars, you will still have 24 US dollars available to buy empty orders. If the trading commission increases the margin of each contract, it will be based on the brokerage contract. It is written on the above, and you will pay the additional security deposit in advance."

That's his decision on future deals.

Although he knows more about the price of silver futures because of the Hunter brothers' silver case, for example, the real sudden death of silver was on "Silver Thursday", that is, a Thursday in late March, when the price of silver fell sharply.

According to the general market, if the price of silver falls, you can make money by shorting.The logic of short-selling is to sell at a high price now, and earn the price difference in the future with a contract or physical delivery bought at a low price. The delayed performance of futures delivery just makes this happen.

But because the current situation is so special, the dealer brothers Hunter hold about [-] million ounces of silver spot and [-] billion ounces of silver futures, and most of the remaining institutions are short silver.

That is to say, there is no counterparty with matching scale between short-selling and long-selling. It is indeed possible to make money on the book by selling short-selling silver, but the money that the Hunter Brothers can lose may not necessarily fall into the hands of small retail investors like Bill. You must know Well, the Hunt brothers later sold all their racehorses to pay off their debts, and still haven't paid off most of their debts.

So when Bill chooses to play gold, he doesn't need to know the highest and lowest prices of gold. He only needs to know that the price of gold will fluctuate in a V shape under the influence of government intervention and "Silver Thursday".

Go short first, then go long, earn double money.

When the price of gold futures rises almost the same later, you can sell and buy government bonds.

Because of inflation all the way in the 70s, the annual inflation rate reached 13.00% in 80. Reagan, who was elected president at the end of the 13.35s, and his team chose to raise the interest rate to [-]%. one.

"Mr. Bill, isn't this a little too impulsive?" Raymond was the first to express his uneasiness.

Now that gold is in a bull market, good news keeps coming. Seeing that the price of gold will break through the $[-] an ounce mark, this young client chooses to go short, which makes him suspect that Bill has broken his mind while playing football.

"Huh? Go short?" After writing down the instructions in another small notebook, Andrew questioned.

He is also not optimistic about Bill's idea, after all, the price of gold is really rising, rising by $[-] or $[-] a day.

"Is there any problem?" Mr. Ferrari sucked his chicken feet, "I am God, you just need to carry out my order, where is the doubt?"

He was not in the mood to explain the reason to these two people, so he stood up and went to the desk to pick up the calculator and started tinkering.

With a principal of US$24 and seven times leverage, it is US$170, which can buy about 2000 two hundred and twenty-seven ounces of gold, which is 27 lots, which is less than the upper limit of 22 lots per contract .

"Empty order of 22 lots, buy in the afternoon. I will wait at your company, and call here to tell me when it is finished."

There was no doubt that Bill had given specific orders.

Andrew looked at Supervisor Raymond, and after the latter nodded, he said, "Okay, Mr. Ferrari, I will carry out your order without any compromise."

Afterwards, Bill left here, went to a food stall in the neighborhood near Wall Street to settle his lunch, went around twice to digest food, and returned to Hilson Brokerage Company, waiting for good news from Andrew.

At around 01:30 in the afternoon, the trader in charge brought a gold futures contract with 22 empty lots to Bill.

"Although I don't understand why you did this, this blank bill is yours!"

PS: Ask for a recommendation ticket and ask for a monthly ticket.

(End of this chapter)