Chapter 25

Chapter 25 The scary foreign exchange market

The international foreign exchange market is actually similar to stock trading.

Acting has its ups and downs.

It's just that the foreign exchange market can be traded every minute and every second, but stocks cannot.

In the international foreign exchange market, billions of dollars are fighting every second in the market, this is a very scary and fascinating place.

Here, one step to heaven and one step to hell. One hundred thousand dollars is a lot.

If you buy and the price increases by one point, the profit is $10.

If you buy short, called selling short, and the price falls one point, the profit is also ten dollars.

It seems there are very few.

But remember that exchange rates change every minute. And there's this terrible thing called leverage.

There is leverage from 1 to 200 times.

As of now.

Abel's billion-dollar capital has increased 20 times.

It can manage up to $20 billion in funds through intermediaries. Two billion US dollars, in exchange for 200,000 hands.

With floating point, you can win or lose 2 million USD.

Main, but also has a deposit of 1 billion US dollars.

Once billions of dollars are lost or losses reach the warning level set by the intermediary, the position will be liquidated directly.

The floating losses will then become real losses. It is now down 7 pips on the yen/euro pair.

The loss was 14 million USD.

On the JPY/USD currency pair, it is down 25 points.

That's a loss of $50 million.

Add the two together, and that's a loss of $64 million. This does not include commissions and service fees payable to intermediaries, i.e. banks and finance companies.

If we count them, the loss will be even greater.

This is the horror of foreign exchange trading, the amount has reached this level.

Gaining and losing one point is very exaggerated.

Faced with this loss,

Even a rich kid like David Mellon, a Wall Street elite. I can not take it anymore.

Although this money does not belong to him, he only owns a maximum of 2% of the dividends.

Such a large amount of money even though only the person who handled it could earn it.

It was a test for his heart to rise and fall.

You should know that he worked at Goldman Sachs for three years and had a lot of clients. But with this number of customers, their money is increasing, not as much as Abel alone.

Additionally, most of these customers do not pose as much risk as Abel.

If you have not witnessed Abel's victorious battles.

Perhaps a few days ago, David Mellon suggested that Abel close the position first to save a small loss and clear his pockets as quickly as possible.

Today, Abel is back and faithfully carrying out all his requests, all led by David Mellon. I really hope Abel can change the situation.

But when he looked at Abel, he didn't seem to feel $64 million.

Abel even lowered his head to look at the watch on his wrist.

This is the Audemars Piguet Royal Oak Offshore collection, priced at $890,000.

After reading the time, Abel suddenly said to David Mellon:

"It's 9:30 p.m. New York time."

"What time is it in Tokyo right now?"

David Mellon said without thinking: "The time difference between New York and Tokyo is thirteen hours. It must have been half past ten in the morning there now. »

As a senior financial manager, remembering the time difference between New York and other major financial cities around the world is just a basic skill.

"10:30 am?" Abel listened and smiled: "Then wait another ten minutes."

David Mellon: ? ? ? ? "What do you mean?" » David asked confused.

"I said, wait a little more than ten minutes, during which time we can choose to have a cup of coffee. Or go to the recreation room next door to play billiards?"

"David, I think it's time we decorate an indoor bowling alley. It doesn't take too much effort, one or two lanes will do."

"That way, when we get bored playing pool, we can play bowling."

"I really am you." Looking at Abel losing 64 million USD, his expression remained calm. There are even discussions about expanding a small bowling alley at the company.

David Mellon was speechless for a moment, but in the end he chose to be as calm as possible.

Even if it's hard to do.

"Forget it. Don't play billiards. Don't talk about your bowling alley.

Let's drink coffee, what flavor do you want?

Blue Mountains or Brazil? You've always loved Brazilian coffee beans, how about a cup of Brazilian coffee? "

Changing the subject, David Mellon was the one to calm down. Don't think about the terrible way to lose money.

"Is there Geisha coffee? I had it once at the NYPD branch in Lower Manhattan two days ago, and it was delicious."

"Um" David Mellon was surprised, "Why did you go to the NYPD?"

That's a friend.

What interested him was not why he drank Geisha coffee, but why he went to the New York police station to drink it.

"There was a bit of a misunderstanding between the agents of the two CAA.

Sheriff Brownislaw, over there, get me a cup of Geisha coffee. I think it's delicious. "

Abel shrugged.

"This should be a small matter. Besides, with your relationship with the New York Police Department, you can't be miserable." David Mellon said.

"There is no Geisha, only Ethiopian coffee has become popular in the last few years. In the past, European women loved to drink it.

I heard the price of coffee was $260 per pound at the coffee auction. "

"Alright."

While speaking, Abel just sat on the sofa where David Mellon had just been lying on his stomach.

Right in front of the sofa are two large screens displaying real-time international foreign exchange markets.

This is an advanced feature available only after connecting to the Internet and purchasing Bloomberg services. "Brazil, then."

"But wait until you're free. Remember to buy me some Geisha coffee beans, I want to drink them when I get to the company."

Faced with Abel's explanation, David Mellon rolled his eyes and said angrily: "Understood, BOSS."

The company not only has security guards but also has a 24/7 kitchen.

is for people in refuge.

The CEO and President want coffee and have someone bring it to them immediately. But for now, David Mellon is still a little worried.

He decided to go into the kitchen and make coffee himself.

David tried to temporarily ease the tension in his mind with this kind of light work.

The company's kitchen is not large. After all, it is just over 800 square meters and needs to accommodate 120 employees. There are currently two department heads in the kitchen.

One of them is also the head chef of a Michelin-starred restaurant in New York.

Michelin star chefs make a lot of money, with annual incomes of at least $300,000 or more.

Such chefs are highly qualified.

If you want to eat their food, you usually have to go to their store. But

In China there is a saying that money can turn ghosts into millstones.

There are similar words here in the United States.

It's called "If you're rich enough, even the Grand Commander can drive you."

One-way.

Therefore, even a starred chef cannot refuse an income of $8,000 per day. 8,000 USD a day, the Michelin star chef happily came to this cramped office kitchen and stayed up all night on duty.

(end of this chapter)