mijobooks Chapter 18: Making hundreds of millions by going long on the Nasdaq stock index!
Chapter 18: Making hundreds of millions by going long on the Nasdaq stock index!
9 month 2 day.
3:30 am.
Oasis City Government, within an office area.
Twenty elites in the stock and futures industry were all focused and intently watching their computer screens, paying attention to the US stock market across the ocean.
As early as August 1st.
Following Lord Zhao Qing's instructions, they went long on Nasdaq index futures with a leverage ratio of 200.
They opened an account with the overseas platform Gain Capital FOREX and established Nasdaq futures contracts.
Due to the existence of the margin mechanism.
Investors are required to prepay a certain amount of margin.
Nasdaq futures margin is calculated as: current price × number of lots × contract size ÷ leverage ratio.
One lot is 100 contracts.
On August 1, the Nasdaq futures price was 4370.90 points.
所以每交易一手，保证金是4370.90×1手×100÷200=2185.45美元。
At the instruction of Lord Zhao Qingcheng, they opened an account and established a long position of 200 million Nasdaq index futures contracts.
光是保证金，他们就累计支出4370.90×200万手×100÷200＝43.7亿美元。
After establishing a long position in the Nasdaq futures contract.
They were responsible for monitoring the market every day, fearing that the Nasdaq index would fluctuate wildly.
This is true.
Nasdaq index futures, 1 standard lot, is worth $100 for every 1 point fluctuation.
Two million lots, and every 1 point fluctuation represents $200 million.
The margin is $43.7 billion.
If the Nasdaq index falls by 22 points, then the $43.7 billion in margin will be wiped out.
in contrast.
If the Nasdaq index rises by 22 points.
Then they could earn $44 billion.
Therefore.
Twenty elites in the stock and futures industry are intently monitoring the market, not daring to make the slightest mistake.
On August 12, the Nasdaq index was at 4389.25 points.
On August 13, the Nasdaq index was at 4434.13 points.
On August 14, the Nasdaq index was at 4453.00 points.
On August 15, the Nasdaq index was at 4464.93 points.
Compared to the price at the time of establishing the position.
In just half a month, the Nasdaq index rose 75 points.
If we leave at this point...
The Oasis city government could net over $150 billion.
but……
They continued to monitor the market as instructed by City Lord Zhao Qing.
On August 18, the Nasdaq index was at 4508.31 points.
On August 19, the Nasdaq index was at 4527.51 points.
On August 20, the Nasdaq index was at 4528.48 points.
On August 21, the Nasdaq index was at 4532.10 points.
On August 22, the Nasdaq index was at 4538.55 points.
……
On August 25, the Nasdaq index was at 4557.35 points.
On August 28, the Nasdaq index was at 4557.69 points.
On August 29, the Nasdaq index was at 4580.27 points.
……
Although monitoring the market every day is very tiring.
But they were all overjoyed and full of fighting spirit.
The reason is that the Nasdaq index has surged dramatically.
Over the course of nearly a month.
The Nasdaq index has never fallen; on the contrary, it has been rising steadily.
When the time came to September 2nd.
The Nasdaq real-time index has reached 4598.19 points.
Just when the department's employees were hoping that the Nasdaq real-time index would reach a new high.
Lord Zhao Qing made a special trip to the municipal government in the early hours of the morning.
The timing of US stock market transactions differs from that of the domestic stock market.
US stock trading hours are in the evening and early morning.
Zhao Qing looked at everyone and ordered, "From this moment on, we must immediately withdraw and secure our funds!"
"Yes, Lord Zhao!"
Twenty elites in the stock and futures industry acted swiftly without hesitation.
Nasdaq index futures are traded on a T+0 basis.
Investors can buy and sell Nasdaq index futures on the same trading day without having to wait until the next trading day.
The T+0 trading model is very flexible and allows investors to operate quickly.
Every employee present was an elite stock trader, and they quickly placed sell orders in batches at Gain Capital FOREX.
Recently.
The Nasdaq index has continued to rise.
The 200 million sell orders were sold off after a period of time at the current price of 4598.19 points.
From their initial purchase price of 4370.90 points to their sale price of 4598.19 points, they made a profit of 227.59 points.
To know.
Two million contracts of Nasdaq index futures, each fluctuation of one point represents $200 million.
In other words.
The profit of 227.59 points earned the Oasis City Government a whopping $455.18 billion!
Trading Nasdaq index futures through Gain Capital FOREX incurs transaction fees.
The commission is the spread between the buy price and the sell price for each lot.
The spread between the Oasis City government's buy and sell prices this time was 227.59 points. Multiplying this by 200 million lots would result in a transaction fee of $4.5518 million.
Despite the high handling fees.
The Oasis City government's profit this time still reached $450 billion!
Based on the latest USD exchange rate of 6.15.
450 billion US dollars, equivalent to 2767 billion Chinese yuan!
……
After the funds are received.
The office area was instantly abuzz.
Everyone was overjoyed, and the cheers were deafening.
This wasn't their first time going long or short on the Nasdaq index, but such a large-scale operation was destined to be one of the most spectacular moments of their lives, something to be remembered for a lifetime.
Zhao Qing looked at everyone and said loudly, "Everyone, for the past month, you have been watching the market every day until dawn, which has been very tiring for you both physically and mentally."
On behalf of the Oasis City Government, I hereby award each of you a reward of 100 million yuan.
In addition, the Oasis City government is preparing to establish a financial investment company and urgently needs talent in the field of stock and futures.
If you're willing to join this company, the salary and benefits will definitely satisfy you!
These words were spoken.
The crowd erupted in a frenzy, the noise deafening.
Everyone was visibly moved and thanked them in unison.
The US stock market is open from 9:30 p.m. to 4:00 a.m. the following day.
To keep track of the Nasdaq real-time index, they stayed up all night every day for the past month, went home and slept as soon as they got off work at dawn, had dinner at home after waking up, and then had to go to work at the Oasis City Government. They didn't even have time to spend with their families.
But with this reward of 100 million yuan.
Everything is different now!
They felt that all the previous hardships were worth it!
Furthermore, without much thought, they all agreed to join the newly established financial investment company of the Oasis City Government.
Smiles are contagious.
Seeing the smiles on his employees' faces, Zhao Qing smiled happily as well.
Compared to the exaggerated profits from going long on Nasdaq index futures this time.
He gave each of these twenty elites in the stock and futures field a reward of 100 million yuan, which was just a drop in the ocean!
For the Oasis City government.
The most important thing is $450 billion, or 2767 billion Chinese yuan!
Since the establishment of the desert oasis city, the municipal government has spent money like water, as it needs to spend money on everything.
With this 2767 billion yuan in funding.
Many of the Oasis City government's plans were able to proceed as scheduled.
For example, provide more funds to municipal enterprises.
For example, establishing more municipal enterprises.
For example, building more roads and railways.
For example, building more buildings and facilities.
all in all.
This money has been poured in.
The development speed of Oasis City will reach a new level!