Chapter 61 Taking Positions

The London Real Estate Dealers Guild is located in the City of London. It is a not-so-tall building, but the foyer looks very simple and elegant. Behind the 8 stone pillars going down from the third floor is the main entrance of the guild.

In London, most of the guilds with a bit of history will set up their guild headquarters in the City of London. It is very likely that in the old and inconspicuous buildings here, there are people who control hundreds of millions or even tens of millions. A trade association with hundreds of millions of pounds in assets.

The reason why we are here today is that Viscount Bute is planning to introduce Barron to join the Real Estate Dealers Guild. As a member of the London Real Estate Dealers Guild, the Bute family has the qualification to directly introduce a member to join every five years. As long as their proposal is not voted against by more than half of the trade association members, then the other party will directly become a member of the real estate developers trade association.

It can be said that since the establishment of this trade association, there has never been a case where someone was rejected after being introduced by the committee members. After all, as a member of the real estate developers trade association, he would not risk the world's disapproval and make too outrageous recommendations.

"Lord Bute, you have done well in King's Cross."

While Barron was following Viscount Bute and his wife to get to know other members of the guild in the hall, a burly middle-aged man came over with a smile on his face and said to Ian Bute.

Seeing the other party, Viscount Bute had a somewhat respectful expression on his face:

"His Royal Highness the Duke of Grosvenor, your compliment is an honor for me, but our little quarrel is nothing in front of you."

"Haha, you have done a great job. King's Cross is the most important urban renewal in the UK in the next twenty years, and it is very promising."

Hearing the title Viscount Bute, Barron realized that the middle-aged man standing in front of him with a hearty smile was the largest landowner in London. It is said that a quarter of London belongs to his family, and there are countless others around the world. Estate of the Duke of Westminster – Gerald Grosvenor.

Just when Barron looked at the Duke of Westminster, the other party's eyes happened to fall on Barron's side:

"What a handsome young man. This must be the Duke of Devonshire."

"Hello, Mr. Grosvenor, I am Barron Cavendish."

Facing the hand that the other party extended out, Barron shook hands with it and said.

"Barron, I have dealt with your father several times, and I am very sad about his unfortunate death, but you have done well recently."

…

In fact, Barron's visit today was just to make more connections, and there would be no substantial cooperation.

After all, he inherited the family business in a hurry. Unlike other aristocratic heirs who were trained from a young age, what he lacks now is connections, and he needs to make up for this slowly.

During this time, he took time to participate in many activities, including charity dinners and gatherings of certain nobles, for this purpose.

After this gathering, Barron was also registered in the London Real Estate Dealers Guild. At the guild meeting held at the end of the year, if the Bute family's recommendation is not opposed by more than half of the members, Barron will officially become a member of the London Real Estate Dealers Guild. A member of the Real Estate Dealers Association.

As a director of Argent Real Estate Group, Barron is also qualified to join - because he holds a total of 20% of the group's shares, Barron has two seats on the board of directors, one is Barron himself, representing DS Capital, and the other There was Julia Moore, representing the family trust.

"Your Highness, Miss Daisy just called you and asked you to call her back when you have time."

After hearing what his assistant Wang Yating said to him, Barron took the phone. He had asked the other party to observe the price of copper in London before. So at that moment Barron walked to a slightly secluded place and dialed Daisy's phone number. Number.

"BOSS, the price of London copper has exceeded 1,480 pounds today. Can we start building a position?"

"Very good, Daisy, first establish a 2,000-lot position and observe it. I'll be there later."

London copper futures, each lot is 25 tons, so if the price is 1,480 pounds per ton, the value of one lot is 37,000 pounds.

However, DS Capital cooperates with Barclays Bank and can use 5% margin for short selling, which is equivalent to 20 times leverage. Barron knows that the highest price of London copper in this round is around 1,500 pounds, so starting from 1,480 pounds Establish a position and then gradually increase the leverage. This price is still very safe, and there is basically no risk of liquidation.

If it is like their 5% margin, then selling one hand of London copper at a price of 1,480 will only require a margin of 1,850 pounds.

They currently have 33 million pounds in funds, which is enough to borrow about 17,800 lots of London copper for sale!

Of course, when it comes to actual operations, it is definitely not possible for such a naive person to directly borrow all the positions to go short. Instead, he first establishes a certain position, and then gradually builds the position according to the subsequent price trend. In this way, in the early stage, You can have enough margin to avoid being forced to liquidate due to insufficient margin in the case of a black swan.

Speaking of which, whether it's futures or stocks, banks' margin trading business is basically risk-free to earn handling fees, because usually they won't really wait for the extreme situation when your margin is exhausted before they start forced liquidation. , but considering the price fluctuations, when the liquidation is approaching, the customer has been notified in advance to increase the margin. If it cannot be increased in time, the other party will decisively force the liquidation to avoid the loss of its own funds.

Investment products with extremely high circulation, such as London copper, gold, and foreign exchange, are better. If it is a stock with a small circulation, liquidation of a large amount in an instant will have a great impact on the price. Banks always need to Consider this.

To put it bluntly, even if there is a loss in the end, it will only be a loss of the customer's margin. Their own funds need to be absolutely safe.

In late July, it was approaching the time when London copper started to fall, so Barron instructed Daisy to pay attention to the price of London copper. Once it approaches 1,500 pounds and reaches above 1,480 pounds, you can start to open a position. At this price, even if you use An extremely low deposit can also ensure safety.

After attending this meeting of the London Real Estate Dealers Association, Barron said goodbye to Viscount Bute and his wife, and drove directly to the Financial City, the securities investment department of DS Capital.

When he arrived, Daisy moved quickly and had completed the short sale of 2,000 lots of London copper.

"The average selling price of these 2,000 lots was around 1,485 pounds. After we established the position, the price of London copper has been fluctuating between 1,485-1,490. It seems that it has fully taken over our order volume and needs to continue. ?"

After listening to Daisy's words, Barron sat in front of the computer and observed the trend of London copper.

Since July, the London copper rally that started in the first half of the year has begun to slow down.

To say it is slowing down is just to say that compared with the previous wave of rapid rise, its price is still rising slowly, and being able to accept their position orders shows that the current buying order is relatively strong, but it is not Do you want to continue the test?

In any case, they need to complete the opening of the position before the price reaches 1,500 pounds - he does not doubt that with the addition of his own selling orders, the price of London copper can still reach 1,500 pounds.

After all, the London copper market is not at the same level as the Nasdaq stocks he bought before. These orders of his have minimal impact in such a market.

"Continue to add positions and strive to sell more than 5,000 lots today."

"Okay, BOSS."

The data during the new book period is related to subsequent recommendations, so follow-up reading is very important. I beg you not to keep it all the time. If you feel that it is okay, read it every day to help increase follow-up reading. Thank you very much.