Chapter 23 First Gold Futures Trading

On his third day in New York, Andrew slept comfortably and didn't get up until noon. In October, New York is a little cool, after lunch, take a walk on the hotel lawn and bask in the noon sun.

After the walk, Andrew, who felt a little bored, couldn't help but think that since he came to New York, he had to go and observe the world's financial heart of the world, "Wall Street".

Please come to the hotel service and arrange a trip to Wall Street.

Wall Street, a large street in the southern part of Manhattan in New York City that stretches from Broadway to the East River. It is only 7 blocks from Broadway to the East River, but it is known as the "financial center of the United States".

But when Andrew came to see Wall Street, it was a dark street that was only one-third of a mile long (about 500 meters) and only 11 meters wide. Such a narrow and dark street is the world's financial heart that will become famous in later generations, "Wall Street"!

Somewhat disappointed by the observation of Wall Street, Andrew returned to his hotel in high spirits.

That night, Shen Bi contacted Andrew on time and informed him of the results of the contact on the progress of Andrew's request yesterday.

Member futures company of the New York Mercantile Exchange and a futures broker with a relatively good reputation. All have been contacted and arranged. Tomorrow afternoon, there will be a contact person from Citibank's futures company to guide Andrew, accompany him to assist in handling futures accounts, and sign the risk agreement. Authorize the broker to buy and sell the contract on behalf of the broker and pay the margin. Then, it's Andrew, you give instructions, and the broker buys and sells gold futures on your behalf.

Knowing the arrangement of the futures company contacted by Shen Bi, Andrew thought about how to arrange the distribution of one million US dollars. Since it is to test the problems that may arise in the actual operation, it is not the focus on the profitable aspect.

In order to test, the million dollar funds need to be operated by different leverage ratios, different futures contract periods, and different personnel. In this trading process, it is also necessary to consider various different ways of trading, that is, buy long orders, buy short orders, close positions, and sell orders, all of which must be tested.

The next morning, two trading operators from Chenggong Investment Company came to New York to have a round with Andrew.

In the afternoon, Mr. Edward, manager of the gold futures business department of Citibank's futures company, came to Andrew's hotel in person.

contacted Andrew, and personally led Andrew and his entourage to Citi Futures, accompanied and assisted Andrew in handling the futures account, signing the risk agreement, and paying the margin and other specific matters.

He also introduced Mr. Pete, a veteran futures broker, as an authorized broker for Andrew Futures Trading.

Andrew knows the reason for the dedication of Mr. Edward, manager of Citi Futures and Gold. Because before, in order to get better services from futures companies. When contacting the futures company, Shen Bi introduced Andrew's investment strength to Citibank.

But no matter what, getting a satisfactory service will always make the person concerned happy.

After completing all the formalities, Mr. Edward invited Andrew to the VIP room to discuss the details of the transaction.

Citi Futures' client treatment is graded and meticulous. The amount of funds in the margin of the futures account and the annual total amount of futures trading are the reference standards for the grading of customer treatment. The amount of margin funds in the futures account of the first batch of 200 million pounds that Andrew expects to invest in makes Andrew have the highest level of customer treatment.

Among them is the exclusive access to the gold futures trading room. Citi Futures' move was very popular with Andrew.

In the dedicated gold futures trading room for the first time, Andrew's first gold futures trade. With a capital of one million US dollars, using different leverage ratios, under the instructions of Andrew's foreseen plan, Mr. Pete, a futures broker, bought and sold gold futures contracts of various methods and maturities on his behalf.

During the week of experimenting with investment operations in various ways, there were many unexpected practical small problems. Through the explanation of Mr. Pete, a futures broker, Andrew and his entourage have a clearer understanding of the actual operation of gold futures trading.

After basically getting familiar with the gold futures trading model in New York, Andrew did not need to run tests on the front line. After arranging the follow-up test, Andrew will return to Hong Kong and confirm the investment plan with Shen Bi.

In addition, Andrew himself will start to mobilize funds to invest in gold futures, and at the same time prepare to arrange for the transfer of the base of gold trading to New York.

Andrew's current investment funds are all in the Hong Kong stock market, and the start-up funds prepared for the opening of the Middle East Investment Bank are gradually being sold.

On October 16, at New York Airport, Andrew, who had been in New York for exactly 10 days, stepped on a flight back to Hong Kong.

On the morning of his return to Hong Kong, Andrew arrived at the top office of Pan Asia Building.

First of all, Mr. Henry was called, and Andrew informed Henry of his intention to invest in New York gold futures. And the planned steps to raise funds are proposed:

Step 1: In addition to Wharf's stocks, Andrew's investment stocks and securities company's own stocks should be fully withdrawn from the Hong Kong stock market within this year. But you have to control the rhythm and don't cause big fluctuations in the stock market.

Step 2: Raise the stock funds of each subsidiary company as soon as possible.

Step 3: Apply for a loan from HSBC as soon as possible with the assets of the Hong Kong company owned by Andrew.

The specific operation is determined by Henry's own organization plan. How is it?

Mr. Henry understood Andrew's intentions. However, in terms of specific operation, Henry still raised a very practical problem to Andrew, that is, the current Hong Kong stock market, the trading volume has been very light in the past few months, and if you want to withdraw hundreds of millions of pounds of stocks within the year, you must control the rhythm and not cause big fluctuations in the stock market. There are still two months left until the end of the year, and there is no way to solve it!

In response to Henry's complaints, Andrew pointed out the key point of the problem, that is, the current Hong Kong stock market is sluggish, and the trading volume is very thin. However, it does not mean that in the next two months, the situation of the Hong Kong stock market will remain unchanged.

What if the Hong Kong stock market rises by more than 20% in the next two months?

"Andrew, is it really possible for the Hang Seng Index to rise by more than 20% in the next two months?" asked Henry in surprise.

"My forecast is yes, the Hang Seng Index will definitely rise by more than 20% in the next two months, and you will use my forecast results as a basis to arrange a specific stock exit plan." In order to strengthen Henry's confidence, Andrew responded to Henry's surprised inquiry with great certainty.

Andrew's prediction is based on a clear memory fragment from his previous life: after the stock market crash of '73, the Hong Kong stock market began a new bull market since November '75. The Hang Seng Index started from 286 points at the beginning of November '75 and ended the year at 357 points.

Since this is your positive prediction of the stock market trend, then I will ask a few more economic review experts to write a few corresponding comments and publish them to several major newspapers according to your stock market trend prediction, so that I can successfully complete the stock exit before the end of the year. "Henry has a lot of trust in Andrew's stock market predictions.

Mr. Henry has great trust in Andrew's ability to invest, and even superstitious worship. This is not Henry's unfounded blind trust, but the result of nearly 8 years of personal witnessing, which has to be sighed, superstitious and worshipped.

Starting from hundreds of thousands of pounds when Andrew was a teenager, with his own investment vision, he now has hundreds of millions of pounds, only a short period of 8 years! It's almost a miracle!

In the afternoon, at a private club in Central, Andrew and Shen Bi met again to discuss and determine the specific plan for joint investment.

HSBC and Chenggong Investment Company jointly established an HSBC Chenggong Investment Fund Company, with an investment of 200 million Hong Kong dollars and 50% equity each, with Chenggong Investment Company leading the investment business and HSBC leading the day-to-day management.

The first business of the fund company is to set up a proprietary closed-end investment fund, which will officially operate to invest in New York gold futures from November 1. After that, the investment fund company will also set up an open-ended investment fund.

In addition, Andrew asked Shen Bi to use the company's assets in Hong Kong to mortgage a short-term loan from HSBC in the near future, so that he could take care of it and handle it as soon as possible. In this regard, Shen Bi agreed very happily. For high-quality asset-backed customers like Andrew, HSBC is very welcome.

After completing the joint investment plan with Shen Bi, Andrew decided to go back to London tomorrow and stay for a few days to visit his family and Emma. After all, it has been a month and a half since I came to Hong Kong from the UK. Moreover, next month, a large amount of money will be officially operated in New York, and it is expected that it will be relatively busy and have no time to take care of anything else. At that point, there may not be time to go back to the UK.

PS: Dear book friends, please collect, ask for recommendations!