Many companies around the world are attracted by Wind and rain Holdings, and Kirilenko had secretly arrived in Hong Kong.
"Feng, why did the crude oil prices plunge again?" Kirilenko asked when he saw Kirilenko.
"Brother Ki, calm down. Calm down." Feng Yu laughed and pushed away Kirilenko's hand. "If you had followed my instructions and did not use more than 10 times leverage, then you don't need to worry."
Crude oil had risen to 55 USD per barrel, but it had fallen back to 51 USD in the past two days. The drop is less than 10%, and as long as Kirilenko did not use more than 10 times leverage, his position will not collapse.
Kirilenko did not say a word.
Feng Yu's eyes opened wide. "Brother Ki, your broker suggested you to use more leverage?"
If that's the case, that broker is not qualified. The bigger the capital, the more stable it was. This was an unchanging truth.
Kirilenko replied embarrassedly. "No. They did not agree to me using 10 times leverage and suggested me to use 2 times leverage first."
"Ok. That's more like it." Feng Yu nodded. "You also did not hedge?"
"No. You also felt that crude oil will rise, and it's just a matter of how much it will rise. That's why I did not ask them to hedge." Kirilenko lowered his head. "Also, I used high leverage on a sum of money."
A sum of money?
"Brother Ki, did you put in the risk reserves?"
Risk reserves were used to add margin at any time, dilute leverage, and reduce losses. For example, if the futures price is about to fall by 10%, the broker will add double the margin and increase the leverage to 5 times. When the futures price falls by 20%, the broker will close out his position.
The risk reserves can also be used in the opposite direction. If the futures price falls rapidly, there is no need to add margin. The broker can use the profits from this contract to offset the losses from the previous contract.
The risk reserves must not be used casually. Even when the futures price is sure to win, the broker must have a surplus. Nothing is absolute, and Kirilenko must not put all his eggs in one basket.
"Half. Only half." Kirilenko replied softly.
"What happened after that? Did you lose all your money?"
"No, I used the remaining half to dilute the leverage. But if it continues to fall, I will still lose my position. "
Feng Yu shook his head: "Brother Ki, with your wealth, you don't need to take such risks. If you're a little more conservative this time, it'll be enough for you to earn a lot of money. Why do you have to be like this? The futures market itself is very risky, and you even used a higher leverage. This is too reckless. "
"I still have some money, and I'll lend it to you later. You can invest it first, and then lower the leverage ratio again to get your capital out. Although you will still suffer some losses, you must have some risk reserves! "
"Alright, I'll listen to you."
Kirilenko had come here to borrow a sum of money from Feng Yu and use it to recoup some of his losses. When he used high leverage, although his agent objected, he was the boss, and his objection was ineffective.
But now, Feng Yu regretted his decision. He does not know much about the financial market, and he should follow Feng Yu's advice and play it safe.
Kirilenko wants to make more money and wants to overtake Bill Gates. That's why he took the risk.
But if he loses his position as one of the World's Top 10 Billionaires because of this risk, it will be a loss.
This is also a lesson for Kirilenko. The financial market is much more difficult than managing a company. Kirilenko was very envious of Feng Yu. This was such a difficult business, and Feng Yu was able to do it.
"How much money can you invest this time?" Feng Yu asked.
"I have raised about 8 billion USD now, and some of my shares will be transferred soon. I will have about 2 billion USD in my account. My total is about 10 billion USD."
Although Kirilenko's net worth is about 30 billion USD, he can only afford this much cash. It's rare to see a tycoon like Kirilenko who can afford one-third of his net worth.
This figure is about the same as Feng Yu's estimate. He knew Kirilenko will raise more funds to overtake Bill Gates and become the World's Second Billionaire.
"What about the deposit? How much do you have?"
"1 billion USD."
"Too little. This is just the beginning, and the market is not set yet. You should keep more deposits, and depending on the situation, you can add more contracts. But this is a good thing. If it's 1 billion USD, I can help you get back about 900 million USD. If you are lucky, you might even get back all of it. "
Kirilenko grinned. He could accept losing only 100 million USD.
Kirilenko did not tell the truth this time. He can raise more than 10 billion USD.
He is trying to get a few of his subsidiaries listed, and the stock market is doing well now. This way, he can raise a lot of funds.
Of course, Kirilenko cannot touch these funds. During the public offering, he had never heard of raising funds to pay dividends to the shareholders. But he can use the funds from the public offering in the name of dividends or something else.
He can use the funds from the public offering to let the company develop normally.
In other words, a company that did not need to raise shares and could still develop well would need to train its capital chain if it did not need to raise shares for financing.
Kirilenko had used the shares of those companies to raise a large amount of funds. Kirilenko also used this method to get closer ties with the tycoons from the Commonwealth of Independent States and other countries. The rest of the tycoons had gathered around him.
Kirilenko also wants to use some of his companies' shares as collateral to get loans from the banks. The reason for getting loans is simple. Kirilenko can get loans in Russia, Europe, and the US. Kirilenko's high-quality shares are not only in Russia. He can also get loans in Europe and the US.
For example, if a company's assets were valued at 100 million yuan, but if you used all of it as collateral, the bank could only lend you 70 million yuan at most, or even 50 million yuan. They had to consider the risk of asset depreciation, even if it was a high-quality asset that everyone thought was the same.
Of course, Kirilenko still has a lot of antiques and artworks. He is asking the bank to appraise them and get ready to use them as collateral.
This time, he wanted to get more capital so that he could increase his profits. Feng had said this is the best opportunity to surpass Bill Gates. The next time might be another seven to eight years.
7 to 8 years. Kirilenko cannot wait any longer. This time, he will surpass Bill Gates. Next time, he wants his assets to exceed 100 billion USD!
… …
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