Chapter 36 The Real Billionaire
At ten o'clock in the evening, the Federal Reserve announced an interest rate cut.
Effective June 15, bank deposit interest rates across the United States have been reduced from the original 3.35% to 3.05%, a decrease of 0.30%.
There are four major currencies in the world today, namely the US dollar, the euro, the pound sterling, and the Japanese yen.
The U.S. dollar accounts for 48.25%, which is more than the other three major currencies combined. It is an indispensable foreign exchange reserve for all countries.
From the country down to the people, as long as they have the ability, they all want to reserve more U.S. dollars for emergencies.
Thus, the hegemony of the US dollar was born. To put it simply, the final interpretation of the US dollar belongs to the Federal Reserve.
Cutting interest rates, increasing interest rates, issuing additional currency, any action taken by the Federal Reserve can shake up the international financial market.
The essence of the interest rate cut announced today is to stimulate market consumption and stop people from depositing all their money in banks.
Spend a little more and let the money flow.
However, artificial intervention in the market has advantages and disadvantages.
It will inevitably lead to inflation.
In the past five years, the Federal Reserve has announced five interest rate cuts and two interest rate hikes. Each time the interest rate was cut, the price of gold rose sharply, and vice versa.
Because gold is the best tool to resist inflation and is also the savings pool for all large funds.
Before you think about which industry to invest your funds in, it is always right to buy some gold. You may not make a profit, but you will definitely not lose money.
Lu Liang understood the reason for the surge in gold, so he crossed his legs and watched the assets in his account rising steadily.
London gold rose by US$1 per ounce,
There was a new income of US$154,000 in the upper right corner of the account.
Eleven thirty in the evening,
Total revenue came to $7.7397 million.
In the past hour and a half, London Gold has made a strong attack, rising 52 points, and the current price is US$1,514.55.
There is only 2 points left to increase from the price predicted by the sound.
Lu Liang decisively began to clear his positions and sold all 1,540 contracts he held, turning the floating profit in his account into actual profits.
His principal is 8.62 million, of which 5.62 million is margin and 3 million is operating capital, using 100 times leverage.
After deducting the 3.5% leverage fee,
the total account assets came to US$16.2547 million.
The market is changing rapidly, giving Lu Liang no time to celebrate becoming a billionaire.
At the moment he sold, London gold rose again by 2 points, and the market sentiment was extremely hot.
Lu Liang acted almost instinctively, switching from long to short, reinvesting 5 million in funds to build a position, and again using 100 times leverage.
With the US$500 million earned, a total of 3,250 contracts were obtained through securities lending, with a total value of 492 million.
Subsequently, Lu Liang sold 3,250 contracts obtained from securities lending at a price of 1,516.7500.
As all contracts were sold, the dedicated funds in the account became 499.85 million, with a current loss of US$105,000.
Short selling is similar to long selling, both are to earn the price difference.
Going long means buying at low prices and selling at high prices, which is not difficult to understand.
Short selling is relatively complicated. Through securities lending, you can get chips in advance, sell them at a high price, and buy them back at a low price.
Soon, Lu Liang established a short position, and the cost price was US$1516.7500.
A total of 3,250 contracts were sold,
A one-point increase or decrease was a profit or loss of US$325,000.
The margin account has US$11.2547 million. Once the loss exceeds 70%, forced liquidation will be triggered.
The maximum increase of 24 points can be accepted.
“This market wave is almost coming to an end.”
Lu Liang stared at the screen intently.
During this period, whether he was investing in stocks or London gold, he was confident and very calm.
Because he knows that as long as the handicap is big enough and his influence is small enough, the outcome is already doomed.
Only this time, shorting London gold, everything depends on his own understanding of the market and judgment of the market.
Because the sound only indicates the highest position, it does not indicate how much the callback will be in the future.
At this moment, Lu Liang's concentration was unprecedentedly concentrated.
He could have stayed in his comfort zone, but he wanted to test the results of his learning in recent months.
Time passes by,
The price of London gold is still rising slowly.
At $1517.25,
it seemed to have hit a bottleneck and lingered for a long time.
This price is also the highest price predicted today. Lu Liang was so focused that his heart almost stopped beating.
He looked at the number until it jumped and became $1517.88.
"Sure enough, it has changed again."
Lu Liang whispered to himself, he, the butterfly, once again changed the final result.
In time, when his strength can affect the market, the foresight predicted by that time may no longer exist.
Half an hour later, the price of London gold was still rising, but the increase was a bit weak. It seemed that the impact of the Federal Reserve's interest rate cut was almost over.
At one o'clock in the morning, the market price of London gold took a sharp turn, and the rising momentum was suddenly curbed.
It pulled back 14 points in an instant and continues to fall.
“This intensity is not like a correction at all.”
Lu Liang frowned. In the past, market price corrections were all done slowly, and there was no such sudden plunge.
He searched for the reasons for the plunge in information forums, and finally found the specific reasons for the fluctuations in gold prices released by Goldman Sachs Group.
“OPEC announced an increase in production next quarter?”
Lu Liang suddenly understood why the price of gold suddenly plunged.
OPEC's full name is the Organization of the Petroleum Exporting Countries, or "OPEC" for short. The tycoons in the Middle East are basically members.
They announced an increase in crude oil production, which represents a fall in oil prices and economic prosperity, and the price of gold will naturally be affected.
As the saying goes, antiques in prosperous times are gold in troubled times. In times of economic prosperity, the price of gold will drop significantly.
“It only reduces the enthusiasm of the gold market, but it should not offset the impact of the Federal Reserve’s interest rate cut.”
Lu Liang pondered for a moment and made a judgment that the impact of the Federal Reserve’s interest rate cut has priority over the increase in crude oil production.
After all, it is a father-son relationship. No matter how loud the son speaks, he cannot overshadow the majesty of his father.
Although oil prices are controlled by "OPEC", the United States is still behind it.
This is also the reason why there has been no peace in the Middle East for so many years.
“If you don’t run now, it may be too late.”
Lu Liang no longer hesitated, chose to believe in his own judgment, reacted quickly, and bought back London gold on a large scale.
A little after one o'clock in the morning, he bought back 3,250 contract orders, paying a total of US$485 million.
Selling at US$1516.17, buying at US$1500, net profit of US$1675 per lot.
In less than half an hour, Lu Liang’s short-selling profits reached US$5.4437 million.
After deducting the handling fee, there is still 5.3387 million US dollars,
The total funds also come to 21.5934 million US dollars.
“I am smiling triumphantly~smiling triumphantly~”
The corners of Lu Liang’s mouth raised and he hummed a cheerful ditty.
Not only because his assets exceeded US$20 million, he became a real billionaire.
It was because of his correct judgment that he successfully cashed out at the highest level and escaped with the funds smoothly.
Just after he cleared his positions, the market quickly reacted. The impact of the Fed's interest rate cut was greater than the increase in crude oil production.
London gold rose by 6 points in an instant. Countless short-selling speculators did not respond in time and were directly forced to liquidate their positions.
Lu Liang was in a very happy mood. Although he relied on the news from the voice to build a position, he relied on his own judgment to clear the position.
He is gradually becoming a qualified speculator.
"A moment of spring night is worth a thousand pieces of gold."
Lu Liang put away the materials, walked out of the study, came to Li Manli's door, stood at the door and listened, there was movement inside.
He tried again and found that the door was unlocked, so he opened the door a crack and quietly entered the room.
I saw Li Manli lying on the bed, scrolling through anime. She seemed to have just taken a shower, and her hair was still a little wet.
She was wearing a pair of pink leggings, her beautiful white legs were swinging up and down, and her tight buttocks showed off her graceful curves.
Lu Liang suddenly pounced on his food. Li Manli exclaimed and said in surprise: "Brother Liang, are you done?"
"You are done for the time being." Through the loose neckline, Lu Liang saw a spring scene, and the red beans were particularly attractive.
"Let's wait a moment." Li Manli smiled sweetly, pushed Lu Liang away, and ran to the changing room happily.
Ten minutes later, she changed into a purple cheongsam, the empress’s cosplay uniform: “How is it?”
"Absolutely." Lu Liang is very upright. Li Manli's career line is not ambitious enough, and she is not tall enough to wear a purple cheongsam. She feels like a child pretending to be an adult.
"I'm angry." Li Manli pursed her lips, ran to the changing room again, and changed into a blue and white JK suit with transparent white silk.
She asked proudly: "What now?"
"I have been reading too much on the computer recently, and my eyesight is a bit dazzled. Come closer and I will take a closer look."
Lu Liang The corners of his mouth were slightly raised until Li Manli came closer and gave feedback with practical actions.
(End of this chapter)