"Everyone, get ready. We will start today!" Feng Yu clapped his hands to attract the brokers' attention.
Everyone's eyes widen as they knew Soros is about to make a big move. Although Soros had dumped Thai Baht in the past, he did not use a lot of funds. Feng Yu, Soros, and the rest are hoping the other party will suffer more losses and make more profits for themselves.
Yesterday, Soros spoke to Feng Yu over the phone, and both agreed to set up a large number of spot and long-term Forex trading positions. After that, they will start to borrow Thai Baht and dump it like crazy. They want to destroy Thai Baht in one fell swoop!
Before this, Feng Yu had borrowed more than 10 billion USD from Thai Baht futures contracts. But the scale of his dumping is not considered big.
Feng Yu had used the stock market to borrow money and dump shares to suppress Thailand's stock market. Of course, although Soros is making losses on the surface, the stock index has been falling, and he can make money by shorting the stock index futures.
Stock index futures is the same as futures. You can place the order with a 10% margin, and some financial companies only need 5% margin.
With such high leverage, Soros will make high profits, but if he loses money, the margin will be used up, and he will be forced to close out his position.
Thailand has 15 local banks that have offshore financial services, and Feng Yu starts to arrange for his men to borrow large amounts of Thai Baht from these banks. Their spot and long-term Forex trading positions are set up through foreign banks.
The Forex market is the same as the stock market. If you sell more and buy less, the price will fall. Feng Yu and Soros start to focus on shorting Thai Baht at the same time, and Thai Baht's spot exchange rate starts to fall.
Kirilenko looks at the monitor excitedly. "Feng, will we start to make money when Thai Baht falls?"
"Of course. But this bit of money is nothing now. We had started building our positions when the rates were 24: 1, and now, it is only 25.3: 1. This is the only way to make more money. "
"Isn't there leverage?"
"Yes, there is leverage. Let's use 10 times leverage. We will earn 1.3 Baht for 1 USD, and with 10 times leverage, we will earn 13 Baht. Our profits are only slightly more than 50%. Do you know how much we have lost by dumping Thai Baht in the spot market? "
"That means Thai Baht must continue to fall for us to make money?"
"Well, there's no hurry. I think the day after tomorrow, it will fall to 27: 1, and then we will stop." Feng Yu said with a smile.
"Stop? Why did he stop? Shouldn't you continue to sell Thai Baht and let it fall? If it doesn't fall, how are we going to make money? "
"Do you think the Thai Government is stupid? They will surely intervene, or there will be inflation in Thailand."
There were already signs of inflation. Thailand had also responded. For example, they issued 100 billion Thai Baht bonds to shore up the financial system. The reserve for real estate increased from 100% to 120%. The financial institutions withdrew an additional 50 billion baht as reserves.
That means there are more and more Thai Baht in the Forex market, but the demand for Baht is not as high. Everyone needs USD. When a country has too much currency, inflation is inevitable.
"How will they intervene?" Kirilenko asked.
"Let's do it the other way round. The more people buy, the higher the price. The Thai Government still has a lot of foreign reserves. Last month, they had done this once. Based on our analysis, they should have used about 2 billion USD to intervene. "
"Alright. You will not understand even if I explain to you. This is a technical term, and it's hard to translate it into Russian. Guangwei, Wei Zai, bring Kirilenko to Macau. Remember, don't overdo it. Know when to stop. "
Fu Guangwei had wanted to bring Feng Yu to Macau. In Hong Kong, many people like to go to Macau for a few rounds of gambling. Sometimes, they will stay there during the weekends to win some money and enjoy themselves. There were rumors that there were more beautiful women in Macau than in Hong Kong. There were women from all over the world, and it was suitable for Kirilenko.
"You are not going? Why don't you have someone watching over us?" Kirilenko asked.
"If I don't watch over them, they will not know when to stop. If they really go against the Thai Government, that bastard Soros will surely let us be the main force, and they will follow to make money."
Feng Yu knew that in Feng Yu's previous life, the Thai Government and the Malaysian Government had worked together to deal a heavy blow to Soros. Soros and his men had lost more than 300 million USD on that day, and they could not even recover their losses from the stock index futures contracts.
Although there will be changes in this life, like the addition of Feng Yu and Kirilenko, Feng Yu still wants to repeat what happened in Feng Yu's previous life. He wants Soros to bring in all his funds, and Feng Yu can estimate the strength of Soros and his men!
Now, Soros wants Feng Yu to sell more Thai Baht, and Feng Yu wants Soros to sell more Baht. Whoever sells more Baht will suffer the most losses. In the end, everyone will make money.
Feng Yu is betting that Soros will not be able to hold back. After all, Soros's money is not all his. Some of his investors' money still belongs to him. Soros might be able to hold on, but those investors might not.
Not every investor trusts Soros like Kirilenko trusts Feng Yu.
Although Kirilenko will come to Feng Yu's office every day and pretend to understand the situation, he will do whatever Feng Yu tells him to do. Kirilenko had never objected.
Feng Yu doesn't know if it is because both of them have the same amount of money, or because Kirilenko trusts Feng Yu.
"Alright. After you are done with your daily logs, you can go home. Remember, everyone, send your market analysis to my email. "
After work, Feng Yu stretched his body. It's been a while since he sat in front of his computer. Although it's tiring, he is very excited.
It's been a while since he was so excited. Earning 800 million USD in a year is normal for Feng Yu. Just the increase in Microsoft and Asian Tiger's shares is enough for him.
This time, it's the best opportunity for Kirilenko to understand Soros's and Quantum Fund's operations. Of course, this is also an opportunity for Kirilenko to make money.
But today's dumping of Thai Baht is not effective. He had dumped so much Thai Baht, but it only pushed down the exchange rate a little.
The next day, Feng Yu saw Soros's backup plan. Soros had gotten his men to spread the news that the Thai Government is going bankrupt. This is because the Thai Government owes a lot of debts, and it's about to mature. Thai Baht will depreciate drastically, and Soros asked everyone to use Baht to buy USD.
This news quickly spread to Thailand, and Thai Baht's exchange rate plunged again. This time, it had fallen more than usual, and it had fallen below the Thai Central Bank's limit. The market panics!
… …
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