He knew that in the next few months, the Nikki Index would fall to 28000 points, a drop of more than 10,000 points from its peak.
When Chu Yue bought the short contract on the Nikki 225 index, the price was 38,875,000 yen.
A bearish Nikko 225 stock index futures contract could earn Chu Yue more than ten million yen.
In other words, as long as it was in April, a contract would be worth 48,875,000 yen.
He had 27782 contracts in his hands. As long as he could get it to April, he would be able to earn 277.8 billion yen!
Dawkins and Green only offered 41 million yen for a contract?
Did these two vultures on Wall Street think that he was a fool?
"Hehe…"
Chu Yue also knew that if these Wall Street investment banks were to get their hands on the futures contract for the Nikki 225 Index Index, they would turn around and sell it in America.
Their method of selling was not to resell.
The specific method was to divide a stock index futures contract that was short on the Nikki 225 index into many small pieces, starting at 1 US dollar.
In this way, the people of the United States and individual investors could afford it, so they bought it in large quantities.
However, what individual investors bought was a derivative product. The real Nikki stock index was bearish on futures contracts. Every drop in the Nikki stock index earned 1000 yen. However, in the hands of American investors, with all kinds of preposterous handling fees, management fees, and operating fees, every drop in the Nikki stock index only earned American public investors about 200 to 350 yen.
The difference was three to five times!
The difference in price would be eaten up by those investment banks.
Chu Yue knew this and said,"I don't have any intention of selling short futures contracts."”
Dawkins said,"Mr. Chu, please consider it carefully.”
"We know your current situation. You've added a lot of leverage and bought the futures contract of the Nikki stock index.”
"The economy of the notebook is still not bad. In the short term, there may be fluctuations.”
"One big fluctuation could devour all your capital and profits!”
Green nodded."Yes, Mr. Chu. Dawkins is right. You have so many stock index futures contracts that are bearish on the Nikki. Although there are potential benefits, the risks are also very high.”
"If you sell it to us, your profits will be locked in and there will be no risk.”
"According to the Chinese saying, this is called keeping a pocket for safety. Isn't this very good?”
The two of them took turns to talk, trying to persuade Chu Yue to sell the contract to them.
"I refuse." Chu Yue said straightforwardly.
Seeing Chu Yue's firm attitude, Dawkins and Grimm felt helpless.
"We're very sorry that we couldn't reach a deal with Mr. Chu.”
"If Mr. Chu changes his mind, please contact us. Grigory knows how to contact us.”
Dawkins and Grimm stood up.
They parted on bad terms, and the two Wall Street vultures left the conference room.
Soros, who had been silent all this while, did not leave immediately.
After Dawkins and Grimm left the conference room, Soros chuckled and said,""These two people look well-dressed, but they are actually two seemingly shrewd fools.”
"But you, Mr. Chu, you're a really smart person.”
Chu Yue looked at Soros.
"Oh, why do you say that?" he asked.”
"The time you chose to escape from the top of the 225 stock index is too exquisite. I can see that you have considered everything.”
"A person like you who has a firm belief will not interrupt for short-term benefits.”
"As for Dawkins and the Green, they think they're smart, but they're complete fools. The real fool is the one who deceives the real smart people.”
Chu Yue smiled.
He didn't have a good impression of Soros, nor did he have a bad impression of him.
However, it was undeniable that Soros was definitely a smart person, and a smart person with ability and action.
"In that case, Mr. Soros, do you have any better suggestions?" Chu Yue asked.”
"I guess Mr. Chu already has a plan. You rejected Dawkins and Green because you didn't want them to take the profits, but to keep them for yourself, right?”
Soros said.
Chu Yue smiled when he heard that.
There was no reply.
That was indeed what he thought.
Previously, Chu Yue simply wanted to make money by betting on the futures contracts on the Nikki 225 Index.
But today, after meeting the two bank investors, Chu Yue had a new idea.
Dawkins and the others did not have that many option contracts to bet on the Nikki Index, but they still kept buying. This was because the risk of the investment banks that the two of them were in was basically zero.
It wasn't that they were skilled, but that they could obtain a steady stream of funds from the US's retail market.
If the Nikki 225 fell a little, a bearish stock index futures contract would earn 1000 yen. If he packaged the bearish stock index futures contract and sold it to American investors, he could earn a large amount of available funds.
Then, he would use this money to buy futures contracts that were bearish on the Nikki 225 stock index. After the stock index fell, for every 1000 yen earned, 200 to 300 yen would be enough for the US investors. The remaining 700 to 800 yen would be the profit.
With profits, they could buy more bearish contracts.
Not to mention the stock index futures market, which had three times leverage.
Moreover, if he lost money, it would not be his own money at all. It would be the money of the American investors.
It was equivalent to buying a financial product like a fund. If the stock market continued to rise, the ones who would lose money would not be investment banks, but individual American investors.
No risk, high returns.
This was simply a perpetual motion machine that made money!
This book is provided by FunNovel Novel Book | Fan Fiction Novel [Beautiful Free Novel Book]