Under this premise, he bought $800,000 in shares at the highest price of $130 per share on the first day the Dow Jones index opened.
After the market opened today, the drop in Leiman Investment Bank's stock price not only did not frighten him, he also firmly believed that this was a huge opportunity to make money.
The U.S. government will definitely intervene, and Wall Street capital will definitely repel Chinese capital!
With this belief, Jereman used leverage and used all his positions and credit mortgages in exchange for a full US$6.4 million, all of which he bought into the stock of Leiman Investment Bank.
The so-called leverage means that while multiplying large profits, it also multiplies losses.
With a principal of 800,000 yuan, the leverage increased by 5 times is 4 million yuan. Under the original 10% increase and decrease limit, the maximum loss and profit limit of this 800,000 yuan in a day are generally 80,000 yuan.
But under 5 times leverage, for an investment of 4 million yuan, a loss of 10% in one day would be 400,000 yuan.
Jerryman used 8 times leverage, which was the highest legal multiple he could obtain given his personal and family combined credit.
There are also some black market leverages and private fundraising, which can be magnified to 20 times or even 30 times or even more...
While returns are rising, risks are also skyrocketing.
Jerryman believed that this was a great opportunity for Chinese beggars to send money to American capitalists.
And there are many people who think like him.
At the beginning, as everyone expected, Quantum Fund began to enter the stock market of Leiman Investment Bank to rescue the market.
But Jin Qingtian's determination exceeded everyone's expectations, and at this moment he launched a decisive battle.
So... caught off guard, Quantum Fund's defense line was completely breached. Amidst the heavy rain of short orders, Leiman Investment Bank's stock price plummeted.
"Damn it! Damn it! Damn it!"
In his clinic office, Jerryman still looks as elegant as before wearing a white coat.
At this moment, his eyes were scarlet and his expression was ferocious. He wanted to smash the computer in front of him.
The share price of Leiman Investment Bank fell below US$100 and reached the US$99.5 mark.
Everyone can see that if Quantum Fund does not continue to spend money, it will only be a matter of time before Leiman's stock price collapses.
At this moment, Jerryman's losses have reached US$750,000.
Jingle bells.
The phone on the desk rang.
Jerriman shot up from his chair as if he was electrocuted. He picked up the phone and answered the call immediately.
"Mr. Smith-Jerryman, I am the account manager assigned to you by the securities company. Now there is only US$50,000 of available principal left in your securities account. Do you need to add principal?"
The cold and heartless voice on the other end of the phone made Geriman hate him.
"Why are you so anxious! Maybe it will rise in the next second!"
The person on the other end of the phone seemed tired of hearing such words. He continued to say coldly: "But according to your additional 8 times leverage, the current stock price of Leiman Investment Bank is 99.5 US dollars. As long as it falls to 99.1 US dollars, you will officially announce
Liquidation."
"At that time, in order to ensure that the leveraged funds enlarged for you are not lost, the securities company will forcefully close your position..."
"ah!"
Before the manager of the securities company could finish speaking, Jerryman let out a scream of extreme horror.
At this moment, on Jereman's computer screen, Leiman Investment Bank's stock price officially broke through the $99.5 defense line and fell to $98.9!
This means that all of Jerryman's property has evaporated in just one morning.
On the phone, the account manager of the securities company paused for a moment, obviously he had also seen the real-time stock price situation.
"I'm sorry, Mr. Jerryman, I must inform you that your securities account has been liquidated..."
Countless people across the United States and even around the world were facing bankruptcy at the same time as Jereman.