Author: quiet thoughts

After the Plaza Agreement was signed, the first money Shirakawa Kaede wanted to make was from foreign exchange trading.

At the same time, this is also Shirakawa Kaede’s biggest play in the financial market so far.

Opportunities are rare, and it would be a shame for him to be a later person if he didn't harvest them hard at this historic moment.

The so-called foreign exchange trading is also called foreign exchange margin trading.

It refers to signing a contract with an investment bank, opening a trust investment account, and depositing a sum of funds (deposit) as a guarantee.

Then the bank or brokerage investment bank sets the credit operation limit and conducts large-amount foreign exchange transactions with very little margin, which is the leverage effect.

In this way, investors can freely buy and sell spot foreign exchange of the same value within the quota, and the profits and losses caused by the operation will be automatically deducted or deposited from the above-mentioned investment account.

This is the general process of foreign exchange speculation. To put it bluntly, it is also a form of speculation.

In the past few years, the London market has developed a leverage method.

He would leave the rest to them, and he was going to catch up on his sleep first.

This is equivalent to setting the prerequisites, and the Japanese yen will not depreciate or even fluctuate.

In the silent trading room, Bai Chuanfeng stood up and stretched.

It is precisely because of this that Arai Yucai predicts that the yen will appreciate by 10% as soon as one month.

Bang, Bai Chuanfeng hung up the phone and glanced at the alarm clock on the bedside, 7:55~!

He turned his head and looked at Bai Chuanfeng. There was an inexplicable meaning in the latter's eyes, and at the same time he was terrifyingly calm.

In the following years, this method of leveraging large transactions with very little capital quickly became popular in the global market.

"Ding ding ding~" the crisp ringtone of the phone sounded extremely harsh in the quiet bedroom.

But given that central banks will sell dollars, this time is likely to be shortened to one month."

Late at night on September 22, Shirakawa Kaede, Arai Yu, Oda, and Hokuto Bank's own traders all gathered at the current headquarters of Hokuto Bank in Chuo District.

After thinking about it for a while, he decided to go to Xiao Huya's place.

Bai Chuanfeng, who was already awake, simply stood up and picked up the phone.

Don't talk about getting rich when the time comes, I won't take you with me.

Bai Chuanfeng did not explain whether the news was true or false, as if it was really just a hypothesis.

"Understood" After hearing this order, Arai Yu became more and more certain that the appreciation of the yen would take effect within two weeks.

But for some reason, Arai Yu was suddenly very sure that the yen's appreciation to 10% would be much faster than expected.

However, the exchange rate issue is, after all, a matter of national importance, so people in the financial field such as Yu Arai and others secretly speculate that the yen will eventually appreciate by about 10%.

As the saying goes, you can make a fortune by keeping quiet.

He didn't plan to go back to the house in Sumida Valley, as it would wake the child up in the middle of the night.

Shirakawa Kaede doesn't care about the specific operations. But in the general direction, a bottom line must be set.

Yuya Arai knew what was going to happen to the central banks of various countries, and the Neon government even deliberately revealed this to the large domestic banks.

"We increase the leverage by 100 times and enter the market in batches. If everything goes well, we will withdraw part of the funds within a week and all funds within two weeks."

Investors can make a profit by buying when a currency rises (going long), or they can make a profit by selling when a currency falls (going short).

But if the yen falls by 1%, investors will lose all their money, and all their invested principal will be lost.

In a hazy state, he dreamed that he was standing on a mountain, looking down at the world and all living beings.

Then investors can make transactions of up to $100,000 with only $1,000, which makes full use of the leverage effect of using small to win big.

Back in the port area, Bai Chuanfeng got into bed and began to catch up on her sleep without disturbing the sleeping little Huya.

The next time was a long wait. However, until two or three o'clock in the morning, the US dollar remained high in the foreign exchange market, with no downward trend at all.

"Of course!" Bai Chuanfeng, who was half asleep, felt as if he had been injected with blood.

However, because the "Plaza Accord" did not specify specific figures, everyone does not know how much the five countries are prepared to let the yen rise or how much the dollar depreciates.

However, with a leverage of 100, the profit will be 100% for every 1% increase, which is already a lot.

Today's foreign exchange international market is not like the 400 times limit of China in later generations. Let alone 100 times, even thousands of times is no problem.

So even if you know what is going to happen, don't be too reckless.

If you know this information, it would already be cheating for financial practitioners.

"Shirakawa-san has finally found you. We and Nomura Securities are ready to enter the market. Will Beito Bank follow?"

When the exchange rate of the Japanese yen against the US dollar rises by 1%, investors will be able to make a profit of US$100,000. The actual rate of return reaches 100%, which means the principal doubles.

If the margin financing ratio is 100 times, the minimum margin requirement is 1%.

"Moxi Moxi?"

Maybe Shirakawa-san got some news, otherwise how could he be so sure?

The purpose is to unite the front, our central bank is ready to end, why don’t you follow?

Everyone has basically reached a consensus on the appreciation of the yen.

"Probably around 10%." After a little thought, he gave his answer.

This is already a lot, and this increase will obviously affect both imports and exports.

After all, it is 8 billion U.S. dollars of funds, so you can’t be cautious.

This mountain is a mountain made of stacked dollars.

“According to the previously announced agreement, it should be within one year.

A glint flashed in Shirakawa Kaede's eyes, "Arai-san, what if I told you that the yen will appreciate by 10% within a week and reach 15% within two weeks?"

Shirakawa Kaede couldn't give him more specific information. But this was enough. The market would only fall in two weeks, and you could make money with your eyes closed.

As for why he didn't add it, it was because Bai Chuanfeng was afraid that due to some inexplicable reasons, if history took a slight turn, he would suffer huge losses.

At this time, not only Bai Chuanfeng's palms were sweating, but everyone else here looked nervous.

Given Neon's foreign trade volume, a 10% appreciation of the yen is likely to result in losses of tens of billions of dollars.

The reason why Shirakawa Kaede emphasized this point to him was to keep him in a state of mind and buy the yen with confidence.

"Okay! Five minutes later, the yen rises! The dollar falls!"

But since we have inside information, why not add more leverage?

"Impossible!" Yu Arai stood up in shock, "If the exchange rate appreciates too fast or depreciates too fast, it will cause the market to blindly follow the trend.

It's okay to just wait. Who knows when the five countries are going to end the game, if it's the afternoon or night of the 23rd.

There are hundreds of millions of dollars in circulation at the snap of a finger, so can you not be nervous?

After wandering around the room for a few times, Shirakawa Kaede stopped and looked at Yu Arai with her hands on her hips.

Needless to say, the major chaebol banks that have received the news have secretly made preparations.

They hugged themselves, gave them passionate kisses, and hugged them tighter and tighter until they were out of breath~

"Huh~" Bai Chuanfeng, who felt unbearable chest tightness, opened his eyes in a daze.

So it does not mean that if you add 100 times leverage, the final profit will be 100 times the principal. That is too outrageous.

Suddenly Arai Yu was stuck in place. If the yen appreciated too fast, wouldn't Neon be the one who would be hardest hit?

In addition to capital amplification, another most attractive feature of foreign exchange margin investment is that it can operate in both directions.

Up to now, leverage operations are generally carried out in the foreign exchange market, and the minimum leverage ratio is more than 20 times to 50 times, and it is very common to exceed 100 times.

"Martial luck is prosperous!" Bai Chuanfeng said nothing and waved his fist fiercely.

100 times leverage, when the market falls, you don’t have to lose all your principal. As long as the loss exceeds a certain amount, the trader has the right to stop the loss mechanism.

Shirakawa Kaede didn't know what time the central banks of the five countries would start taking action on the 23rd, so he could only keep an eye on the market. As long as the US dollar dropped significantly, Shirakawa Holdings would follow.

Shirakawa Electric's profit range is roughly within this range. If it is in the raw material or textile industry, if the profit rate can be 10% to 15%, it means the economy is booming.

Such repeated horizontal jumps can prevent funds from being restricted by the so-called inability to make money in a bear market, thereby providing greater profit space and opportunities.

Shirakawa Kaede was noncommittal about his answer, "So how long does Arai-san think it will take for the yen to appreciate by 10%?"

"Hey!" Yu Arai, who was fighting with others, did not expect that Shirakawa Kaede would suddenly talk to him about this topic.

The people below showed admiration, surrounded by countless beauties.

Look at the rate of return in the manufacturing industry. The profit margin of high-tech, high-value-added products is 30% to 40%, which is already very good.

The greater the leverage ratio, the higher the risk of liquidation.

After explaining this place, Bai Chuanfeng also got up and left the Beidu Bank headquarters.

With a wry smile, Bai Chuanfeng had to push her away slowly.

Moreover, large transaction volumes entering the foreign exchange market can easily attract the attention of all parties.
To be continued...