Reborn, back to a small county town to become a wealthy family

Chapter 718 Guaranteed Victory
Before Luo Yang issued the trading order, the fund's principal had already accumulated to 14080 million US dollars. With the 600 million US dollars gained after the transaction was completed, the total amount of funds had reached 14680 million US dollars.

However, 600 million US dollars of that was earned in tonight's transactions, without the leveraged amount of three times.

In addition, 2000 lots were bought as long positions, costing 15762 million US dollars.

Because the principal of 14080 was leveraged 80 times, the fund product could leverage 112.46 billion yuan in the futures market. Even after deducting the funds already used for trading, 111.0638 billion yuan was still left.

In addition, he has a considerable amount of capital in his private accounts, which has accumulated to a total of 4801.2 million US dollars.

My private account made two transactions tonight. The first was a complete liquidation, resulting in a profit of 11718 million US dollars. The second was a buy-and-sell transaction, resulting in a profit of 600 million US dollars.

The 12318 million US dollars in profits from these two transactions have not yet been used for leveraged financing.

Therefore, the total amount of funds that Luo Yang's private account could leverage in the crude oil futures market is 0.48012 * 80 + 1.2318 = 39.6414 billion US dollars.

Of course, this amount should be reduced by the 2000 lots bought earlier, totaling 1.5762 million US dollars.

The remaining available funds are 38.0652 billion US dollars.

At this moment, everyone in the trading room held their breath, their eyes fixed on the market index on the computer screen.

Crude oil prices fell rapidly from $81.87 per barrel.

81.52-81.23-80.87
The bearish candlestick pattern on the market seemed to signify a rapid decline, with no pauses seen at the 81, 80, and 79 levels, and crude oil prices plummeting to 78.37 US dollars per barrel.

"At a price of 78.39 US dollars per barrel, fund product accounts used 15 trading accounts to buy 40000 lots, going long; private funds accounts used 8 trading accounts to buy 20000 lots, also going long!"

Zhao Pengcheng had just lectured the traders present a dozen minutes earlier, so the moment Luo Yang gave the order, the sound of rapid keyboard typing filled the air.

On average, buying 10000 lots would require 7.839 million US dollars.

For the fund's principal account, this is equivalent to using 30% of the position, but for Luo Yang's private account, it is equivalent to using more than 40% of the position.

Under normal circumstances, the former uses 30% of its position, which is relatively safe. Generally speaking, unless there is a special sharp drop in the market, there is basically no risk of being liquidated.

With 40000 lots, for every 1 US dollar drop in crude oil price, 4000 million US dollars of funds are needed to replenish the position.

However, for Luo Yang's private account holdings, the safety of funds is not that high.

With 20000 lots, for every 1 US dollar drop in crude oil prices, 2000 million US dollars of funds need to be added to the position.

However, Luo Yang was confident that the purchase price was 78.39 US dollars per barrel. Even if the price fell further, the downside would only be 39 US dollars. Therefore, even if he held 90% of his shares at this price, he still had no chance of being liquidated.

The reason he didn't go that far was because he didn't want to be too shocking.

Who goes all in at once?
Unless we know the outcome.

Luo Yang cautiously bought in stages: "At a price of 78.45 US dollars per barrel, the fund product account used 15 trading accounts to buy 40000 lots, going long, and the private account used 5 trading accounts to buy 20000 lots, going long."

As he gave his instructions, the trading room was filled with the crisp sound of keyboard typing once again.

The two transactions were completed in a very short time.

RMB 31.38 billion was spent from fund product accounts and RMB 15.69 billion was spent from private funds accounts.

As of now, the holdings in fund product accounts have exceeded 60%, and Luo Yang's private fund account holds even more than 80%.

The former still has room for maneuver, but the latter, with its near-full position, carries an extremely high risk.

Zhao Pengcheng's gaze shifted between the stock market index and Luo Yang's face.

Several times I opened my mouth as if to speak, wanting to offer some advice, but for some reason, I ultimately didn't say anything.

Xiang Wanwan, who was standing next to Luo Yang, had unconsciously grabbed Luo Yang's arm with both hands.

At this moment, her eyes revealed excitement, her cheeks were flushed, and her thighs trembled as if she was about to burst out laughing.
After the funds were amplified 80 times, two consecutive orders were issued, mobilizing nearly 10 billion US dollars.

In the US crude oil futures market, where the amount of money involved is in the trillions, it disappears like a wave, without leaving a ripple.

"At a price of 78.41 US dollars per barrel, the fund product used all remaining trading accounts to buy 30000 lots, going long!"

With a larger amount of capital, Luo Yang dared not go all in.

Therefore, this round of trading only used the money in the fund's account, pushing its holdings to over 80%.

After completing the transaction, Luo Yang reached for his cigarette, only to realize that all that was in his mouth was the cigarette holder.

"Snapped!"

Chu Jing reacted quickly, turned around and took cigarettes and a lighter from the coffee table in front of the sofa, and quickly lit a cigarette for his boss.

After taking a few deep breaths, Luo Yang's heartbeat finally calmed down.

This time, the market did not adjust quickly, and crude oil prices began to trade sideways around the $79 mark, with fluctuations not exceeding 50 centimeters.

"Let's go back to the office and have some tea."

In a good mood, Luo Yang led the way to his office.

Xiang Wanwan was still holding his arm, so she naturally followed closely behind.

Chu Jing was a step behind; she still had to help her boss bring the cigarettes and teacups outside back into the office.

Zhao Pengcheng is the slowest.

He didn't leave immediately, but continued to stare intently at the stock chart on the computer for several minutes. Seeing that the price fluctuations were still minimal, he then turned and walked towards Luo Yang's office.

"Old Zhao, come and sit down."

Seeing Zhao Pengcheng push the door open and come in, Luo Yang waved with a smile: "I just changed the pot of Da Hong Pao tea, come and have a taste."

"Chairman"

Zhao Pengcheng didn't rush to sit down, but instead earnestly suggested, "Your fund products and personal account holdings both exceed 80%, which is a dangerous ratio. How about I keep an eye on the market outside, and once crude oil prices return to above 80, we reduce our holdings?"

In his view, buying at around 78.50 US dollars per barrel and going long is a good idea, and holding around 60% of the position provides a decent level of safety.

However, the current open interest ratio has exceeded 80%, which is a very dangerous operation in the international crude oil futures market.

He felt it was necessary to remind his boss and help keep an eye on the market to handle any potential price fluctuations.

"If you feel it's not safe, then go outside and keep an eye on things."

Hearing Zhao Pengcheng say this, Luo Yang knew that even if he were asked to sit down and have some tea, he wouldn't be able to calm down.

It would be better to just let him keep an eye on the market outside; that would give me some peace of mind.

Zhao Pengcheng did not hesitate. After Luo Yang finished speaking, he turned around and went back to the trading room.

"Tsk, what a fine pot of tea."

Luo Yang sipped his tea and smacked his lips.

"Boss, I also know about tea."

Chu Jing smiled and said to Luo Yang, "I won't waste your fine tea."

"The crash courses that your Director Wen organized are just for show."

Luo Yang glanced at Chu Jing: "It's like golf balls. You guys look good in your gear, but it all comes out as soon as you get on the course."

“We go once a week now, and we have a coach every time.” Chu Jing argued indignantly, “Director Wen said that if you stick with it for a year or two, those with more talent will basically be qualified to play on the court with the boss.”

"So, how's your talent?"

Luo Yang looked at Chu Jing with a smile.

"I can not!"

Chu Jing looked somewhat dejected, but recovered quickly and said with a different expression, "However, Sun Wei has quite good talent. The coach said that if she could have more time to train, she might even reach the professional level for women."

"Oh?"

Luo Yang exclaimed in surprise, then smiled and said, "We can bring her along to practice when we go to play ball in the future."

The way he says that makes it sound like he's very knowledgeable.

Chu Jing had at least seen it before.

"Mr. Luo, Mr. Zhao just mentioned that holding more than 80% of one's portfolio in futures trading is considered a risky strategy."

After Luo Yang and Chu Jing finished their conversation, Xiang Wanwan finally had a chance to interject and ask, "Furthermore, I've been looking through some finance books and I remember they mention hedging to reduce risk. Why don't you use that method?"

This is a euphemism.

In Xiang Wanwan's eyes, Luo Yang's actions were tantamount to a desperate gamble; holding 80% of his portfolio was not much different from being fully invested.

The fund purchased a total of 110000 lots to go long. If the price of crude oil drops by an average of 1 US dollar, it would need to replenish its position with 1.1 million US dollars, otherwise it would be liquidated.

The same applies to private accounts. A total of 40000 lots were bought to go long. If the price of crude oil drops by an average of 1 US dollar, 4000 million US dollars of funds would be needed to replenish the position.

Of course, if the price goes up, you'll still make this much money.

"Didn't I already explain the reasons to you before?"

Luo Yang smiled and said, "If crude oil prices really continue to fall so sharply, OPEC will have to announce production cuts. Low prices are not good for them, and they won't ignore it."

Things are not like they were in the 1980s and 90s.

Back then, the US was the undisputed leader in the world. For certain special reasons, it could force OPEC oil-producing countries to increase production, suppress or deliberately inflate international crude oil prices, and use economic warfare to weaken its competitors.

It's not very clear now, but in seven or eight years, OPEC will dare to secretly defy the US, and it will be much more difficult for them to manipulate international crude oil prices at will.

Even if it were possible, the price one would have to pay would far outweigh the benefits.

"So, according to this logic, crude oil prices will just keep rising?"

Xiang Wanwan has not systematically studied finance, but she still understands basic logic.

She looked at Luo Yang with bright eyes and said, "And I think you're planning a long-term strategy. How high do you predict the price of crude oil will rise this time?"

The fund products and Luo Yang's private account funds combined bought a total of 150000 lots. If the price of crude oil falls back to above 90 US dollars per barrel, this operation tonight will yield a profit of more than 15 billion US dollars.

This was already the limit of her imagination.

Luo Yang knew, however, that crude oil prices would continue to rise until mid-September, breaking through the $110 mark.

Although he will sell off the portion of his position financed by the bank after the price of US dollars per barrel exceeds 100 US dollars, he will also seize the opportunity to buy more US dollars with the 30 billion US dollars he earns, hoping to reap the benefits in the second half of the rally.

Of course, Luo Yang wouldn't push himself to the limit.

This wave of exodus will occur in the 109-110 yuan range, after which most of the funds will be withdrawn.

They left behind several hundred million US dollars, waiting for crude oil prices to surpass the $110 mark before shorting the market, and cleared out all their holdings by the end of the year, regardless of the price level.

I definitely won't tell Xiang Wanwan this operational plan.

"I don't know."

Luo Yang shook his head, deliberately thought for a moment before replying, "But I predict that international crude oil prices will rise in a spiral over the next period of time. It depends on whether the Federal Reserve releases any new information. If so, it will definitely affect the trading prices of international commodities."

Xiang Wanwan nodded, seemingly understanding but not quite.

"Junior, don't be too impatient."

Seeing Xiang Wanwan's expression, Chu Jing comforted her, "Once you enroll and study for two or three years, when you come back to observe the boss's live trading, the experience will be different."

"Then the senior must have learned a lot from that experience, right?"

"To be honest, I can only understand part of it."

Before replying to Xiang Wanwan, Chu Jing glanced at Luo Yang. Seeing that he had no expression, he continued, "And it was after the boss had finished his operation. I had to work backward from the result to understand the relationship between them."

In fact, she was also very curious.

Although the time she spent with Luo Yang wasn't very long, it wasn't short either.

In Chu Jing's view, although his boss was indeed a genius in business, he didn't know much about finance, especially basic professional knowledge, let alone be proficient in it.

However, his actual combat ability is exceptionally strong.

Whether it's the domestic stock market or the international futures market, they can all demonstrate amazing and incredible operations.

That's a bit mystical.

Fortunately, there are templates available in China.

For example, Chen Fashu, who did not graduate from primary school, made tens of billions of yuan in the stock market by investing in companies such as Zijin Mining, and is known as the most successful individual investor in the history of the Chinese stock market.

There is another person named Lin Yuan, who came from humble beginnings. With his keen market insight and correct investment strategies, he started with 8000 yuan and by 2006, his stock holdings had reached a market value of 20 billion yuan, making him a legendary figure in the domestic stock market.

Even Xu Xiang, currently the top figure in the private equity circle, although he graduated from Nanjing University, did not study finance.

Chu Jing knew all this, so despite his curiosity, he didn't think too much about it.

They just thought their boss was also a genius.

"Is my senior going to work at Gray Rhino in the future?"

What Xiang Wanwan wasn't actually concerned about was the futures market: "The place where I'll be interning in the future might be a gray rhino, so I'll have to ask you to take good care of me then, senior."

Chu Jing wasn't blind; how could he not see the relationship between this little girl and Luo Yang?

"Where I go in the future depends on the needs of my boss."

She replied with a smile, "Not necessarily in the gray rhino."

The boss owns not only fund companies and investment companies, but will also own a bank in the future.

Chu Jing also has ambitions.

Otherwise, wouldn't it be better to stay in the board office of Kunpeng Technology as the director, where there's plenty of money and little work?

Why should I succumb to Wenwan and jump back to the group's board office?

Clinging to Luo Yang's coattails is all about securing more resources and a larger starting platform.

Xiang Wanwan also studied finance.

They were destined to be rivals.
(End of this chapter)