When Feng Xingtai was preparing for the New Year celebration, Feng Yu had returned to Bing City and was talking to He Zhaoji over the phone. He Zhaoji was reporting the latest oil and London gold prices.
On January 17th, the price of oil rose by 1 USD before it started to fall. From that day onwards, the price of oil fluctuated and fell every day. It had been 10 days and the price of oil had fallen from 27 USD to 19 USD. Especially on the 17th, the price of oil fell the most. From its peak of 27 USD, it fell to less than 23 USD. The next day, it fell to less than 20 USD.
After that, the price of oil started to fluctuate slightly, but the price did not rise. Every day, the price of oil would close lower than the day before. The closing price was still below 20 USD.
He Zhaoji was impressed by Feng Yu's analysis. Someone dared to bet on the price of oil and succeeded. But He Zhaoji was worried that the price Feng Yu had set was too low. 18 USD. If it was 20 USD, Feng Yu would have settled his contract and made a lot of money.
Feng Yu only told him to wait patiently. Although the price of oil was fluctuating, it will not rise again. In a few days, the price will fall to 18 USD. At that time, it will be time for him to settle his contract.
The Fu Family gathered at Fu Rongqi's house again. They were discussing if they should trust Feng Yu. The price of oil will fall to 18 USD.
If they bought at a high of more than 20 USD and used high leverage, even though it was only a difference of two USD, they could still make about twice the profit.
But they did not trust Feng Yu fully. If they had followed Feng Yu and shorted the price of oil at 27 USD, their profits will be 6 times higher when the price of oil falls to 18 USD!
Feng Yu had bought a few hundred million USD and used high leverage. Doesn't that mean Feng Yu will make more than 2 billion USD?
The other 3 brothers of the Fu Family were blaming their eldest brother, Fu Rongqi. If Fu Rongqi had followed them and bought the price of oil, they will surely follow him. Even if they had invested 100 million HKD, they will get back 500 to 600 million HKD. If they had invested more, they will make more.
Fu Rongqi was furious. Look at the whole of Hong Kong. Who is shorting oil? How many people in the world are short? Even if I had followed suit, would I have dared to use high leverage? Do you dare to bet such a low price? Who would have thought that because of the war, oil production would decrease and the price would fall?
At that time, Feng Yu bought so many, it's not like you didn't know. Who would dare to buy with him?
When the Fu Family Head is angry, they dare not say anything. They only dare to complain. If the Fu Family does not have the Fu Family Head to support them, they will not be where they are today.
Actually, if the big boss had asked them to buy, they might not have dared to follow suit. However, he knew that there was a chance, but he didn't have the guts to earn a lot of money. He couldn't help but feel a little uncomfortable.
Fu Rongqi was also unhappy. On the 16th, the oil prices had increased, and he thought Feng Yu's analysis was wrong. But on the afternoon of the 17th, oil prices suddenly plummeted. Who would have thought that this would happen?
After that, oil prices continued to fall and did not rise again. When Fu Rongqi realized this, it was too late for him to buy.
According to Feng Yu, there was still a 2 USD price difference. But 2 USD was too little, unless the Fu Family was like Feng Yu and used 5% of the margin as leverage. But the risk was too high.
Fu Rongqi had watched the Fu Family develop to this day, and he had also seen many Hong Kong tycoons fade away. Most of them had failed in their speculation.
Investing was not scary. Although there was a risk of losing money, through careful analysis and careful operation, the risk was manageable. But if it was speculation, it was no different from gambling. Although the profits were high, the risks were high. If one was not careful, he might lose everything.
Just like Fu Rongjing, who speculated in Rubles. He had lost 400 million in a short period and had to rely on Feng Yu's gold futures information to recover most of his losses.
But even after he had recovered his losses, Fu Rongjing still did not dare to bet on oil prices. Instead, he returned the money he had borrowed. Those who had lost once were more cautious.
Fu Rongqi does not want to continue to invest in oil. The profits were not high, and there were still high risks. He might as well invest in gold. The gold market was also fluctuating. The price was just like what Feng Yu had said. It had been falling, and it had fallen to about 360 USD/ounce. He believed that the 355 USD price that Feng Yu had mentioned should not be far away.
They had also made a lot of money by following Feng Yu to short gold. Fu Rongqi had called everyone over to ask them to prepare their funds. He wanted to buy gold at about 355 USD, and he felt it was safe. It was up to his brothers to decide if they should follow suit.
The other 3 Fu brothers looked at each other and decided to invest more. Although they did not believe Feng Yu's words about gold prices rising, their eldest brother's team had analyzed the situation. Gold prices will surely rise, but they could not guarantee how much it would rise. They still believe in their eldest brother's analysis.
Anyway, they were betting on gold prices rising, and they could sell anytime. They do not need to use high leverage and should be able to make a lot of money.
Fu Rongqi was still hesitating if he should hedge his bets to lower his risk. In the past, when he invested in futures, he would hedge his bets. He would buy and sell the same amount of contracts. This way, when one of his bets was about to be closed out, he could use his other bets to offset the losses.
This was what many big companies and financial giants used. Although the profits had been lowered, the risk had also been lowered.
Although they had given up on making 1 billion RMB, they would not let 1 billion RMB suddenly become 100 million RMB. They could still use 1 billion RMB to invest and make 100 million RMB profits.
Fu Rongqi's mind was filled with the scene of Feng Yu shorting oil. Feng Yu was so confident and carefree. It was as if Feng Yu was confident that he would not lose.
Young people were always aggressive. But at Fu Rongqi's age, he would not do risky things, even if the profits were attractive.
It was better to hedge his bets. He believed that when gold prices fell to 355 USD, it would surely rise again. But Fu Rongqi was not confident if gold prices could reach above 400 USD like what Feng Yu had said. No one in his team dared to make such an analysis.
A few days later, the price of oil finally fell below 18 USD and closed at 17.74 USD. Feng Yu had settled all his oil futures contracts.
When Fu Rongqi heard from his men that the price of oil had fallen below 18 USD, he was impressed by Feng Yu.
Since Feng Yu's analysis of oil was so accurate, then his analysis of gold should also be accurate. This time, Fu Rongqi did not hedge his bets. He decided to take a gamble!
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
