My Age of Investment

   Chapter 1156 Who is the real first brother

   "Our team shorted 100,000 December futures forward contracts at 1400 on the S&P 500, creating a $35 billion short position on top of a total of $7 billion in trading margin."

   "As of yesterday's close, the S&P 500 has fallen to 1185.87 points, and we have accumulated a floating profit of 214.13 points."

   "The S&P index fluctuates by a profit and loss of $250 per point, multiplied by 214.13 points, and multiplied by the number of futures contracts of 100,000, so we have accumulated a floating profit of $5,353.25 million..."

After    Liu Hai's report, Jiang Ping took the stage again, and also used PPT to introduce the investment gains made by Vision Capital in stock indexes and derivatives in the past half a year.

   In addition to the S&P 500's floating profit of more than five billion US dollars, shorting the Nasdaq and the Dow Jones index also yielded fruitful results, adding up to a floating profit of more than six billion US dollars.

   "Sold 67,238 futures forward contracts at 2602.68 on the Nasdaq, creating a $17.5 billion short position on top of $3.5 billion in trading margin."

   "As of yesterday's close, the Nasdaq has fallen to 2107.61 points, and we have accumulated a floating profit of 495.07 points."

   "The Nasdaq futures fluctuated a profit and loss of $100 by one point, multiplied by 495.07 points, and multiplied by the number of contracts of 67,238, and the result was a floating profit of $3,328.75 million."

  …

   "Sold short 136,717 mid-cap futures contracts at 12,800.18 on the Dow, and formed a $17.5 billion short position on top of $3.5 billion in trading margin."

   "As of yesterday's close, the Dow Jones Index has fallen to 10825.17 points, and we have accumulated a floating profit of 1975.01 points."

   "Mid-cap Dow futures fluctuate by a profit and loss of $10 per point, multiply by 1975.01 points, and multiply by the number of contracts 136,717, and the result is a floating profit of $2,700.17 million."

  …

   Looking at the group of trading charts on the screen, the executives all widened their eyes.

   They thought that William Liu was already good enough, but as a result, there was an even more powerful god, Peter Jiang, who just appeared.

  Jiang Ping team invested 14 billion US dollars to short the three major stock index futures, with a total floating profit of more than 11.3 billion US dollars.

  Liu Hai also invested US$14 billion to short the underlying shares of financial companies, with a total profit of less than US$9.6 billion.

   In terms of rate of return, the Jiangping team is undoubtedly better.

   However, since the three major stock index futures are all purchased 12-month forward contracts, they will not be delivered until January next year.

   And the Liu Hai team has already settled down, and the investment will not make any waves.

   Therefore, the profit on stock index futures can only be called floating profit for the time being.

   Next, Jiang Ping introduced and displayed the investment of the other 6 billion US dollars in the principal of 20 billion US dollars.

   The US$6 billion was invested in the three major stock index ETF funds, as well as financial derivatives such as put options of the ETF funds and the VIX panic index.

The stock index, that is, the stock index itself cannot be directly traded in the market because it is not a stock. Or choose to trade "ETF-backed" options.

   For example, the largest ETF fund that replicates the rise and fall of the S&P 500 is called SPY.

  SPY was listed on the New York Stock Exchange in 1993, similar to a stock, while taking into account the characteristics of a fund.

   Investors can not only subscribe for or redeem fund shares from the fund management company, but at the same time, they can buy and sell ETF shares at the market price in the secondary market like closed-end funds.

   Therefore, ETF funds are also called exchange-traded open-end index funds, or exchange-traded funds.

   If you short-sell SPY, you are also borrowing stocks to sell, or it is more accurate to call borrowing "shares" to sell.

   is similar to the underlying stock for shorting individual stocks, but the name is slightly different.

   In addition, the SPY ETF fund also has a corresponding options market, called SPX, which can trade call options and put options, whether it is a buyer or a seller, which can be freely chosen by investors.

   is equivalent to a casino that matches transactions, and the gambling equipment is the SPY ETF fund.

   And SPY's betting tool is the S&P 500 index.

   is equivalent to anchoring one symbol to another.

   In addition, there are inverse ETF funds, that is, the existence of short ETF funds.

  If the S&P 500 rose 1% on the day, the inverse ETF would fall -1%.

   And there are inverse ETFs with double leverage, such as the S&P 500 index rose 1% on the day, and the inverse ETF funds with double and triple leverage fell -2% and -3% on the day.

  The highest leverage is also three times, and there are also ETF funds that are three times long in the market.

  The United States, as a financially developed country, has endless financial innovations (gambling games), even if it is just a stock index, it can be played out.

  VIX panic index, also known as CBOE volatility, also has its own corresponding financial derivatives, such as futures, options, ETFs, etc.

   Each of the subdivided trading varieties can be long or short.

   Following Jiang Ping's introduction, everyone learned about the investment and income of these financial derivatives.

  The principal of 6 billion US dollars has made a total floating profit of 14.6 billion US dollars.

  Similar to the situation of Liu Hai’s team, Jiang Ping’s team’s investment in financial derivatives can earn a much higher rate of return than traditional conservative investment methods such as shorting underlying stocks and futures.

   This is because the design of financial derivatives is more complex, and the risks and returns are also directly proportional.

   A little carelessness, the principal of 6 billion US dollars will be completely wiped out.

   Similarly, in the short term, these high-risk investments can also achieve several times the rate of return.

   When Jiang Ping finished his introduction, Xia Jingxing nodded with satisfaction.

   There is no doubt that Jiang Ping's investment level and trading experience are stronger than Liu Hai.

   Therefore, Xia Jingxing handed over the most important and most complicated and difficult investment to Jiang Ping.

  Jiang Ping also lived up to his expectations. In just over half a year, he created a floating profit of nearly 26 billion US dollars with a principal of 20 billion US dollars.

  Xia Jingxing commented with a smile: "Very good! I remember that a few months ago I lost 5 or 6 billion US dollars, and I turned a loss into a victory so quickly."

   Jiang Ping said very modestly: "If there is no ballast stone fund and huge transaction margin prepared by the company, let's not say that we have turned defeat into victory, and our positions may have been liquidated long ago.

  From the beginning of the year to the end of September, U.S. stocks have experienced at least three major rebounds, as well as small rebounds once a week or two.

   It is difficult for ordinary small short-selling institutions to support such repeated shocks! "

  Xia Jingxing laughed, "Peter, you are too modest, you and the team have done a great job of controlling risks and positions.

  If you built a short position of $1-200 billion around the three major stock indexes, maybe all of us are going to the rooftop by now. "

  Jiang Ping smiled lightly, acting very lightly.

   The other executives nodded secretly in their hearts, expressing their approval of what Xia Jingxing said.

  Although the boss has an overview of the overall situation and is quite accurate in judging the general trend, if the following is not implemented well, it will still be empty, or even serious bankruptcy.

  In the history of finance, there have been incidents where traders lost their red eyes and killed the company.

   On the one hand, there are reasons why the internal control is not rigorous enough and not good enough, and on the other hand, there are also reasons why the responsibilities of traders are too great.

   After all, it is the trader, not the boss, who really knocks out hundreds of billions of trading orders.

   Seeing the transcript handed over by Jiang Ping, many executives turned to look at Liu Hai.

   They are curious about the mood of bangs at the moment.

   The New York office has never had a managing director of MD. Liu Hai, Jiang Ping, and Abel are all ED executive directors.

   In other words, the first brother who leads the hedge fund department has not yet been born.

   Now the performance of the Jiang Ping team seems to be ahead of the Liu Hai team, so who should be the first brother?

   Seeing Jiang Ping's team achieve such a brilliant record, Liu Hai has no jealousy or jealousy at all, and has been laughing and applauding.

  Xia Jingxing also paid attention to the subtle expressions on Liu Hai's face, and felt relieved.

   Jealousy of the virtuous, that must be unacceptable.

  Everyone performs their own duties and is responsible for a piece of business. There can be healthy competition, but they must not play tricks or tricks.

   (end of this chapter)