
Haru was in his office at Longinus Investment after he finished his cafe. He had no plans to create a branch for his cafe because this cafe was purely for his pleasure. It was good because he was making money, but he didn't really care if it was a loss. He read the data Ayase had collected for him and had made a decision.
“Bos, are you really sure you will do this?”
Ayase looked at Haru with a serious expression. He really wanted to sigh at this moment, and he really wanted to stop his boss from making such a ridiculous decision.
Haru looked at the screen on the computer and said, “My decision is final. No matter what you will say, I will not change my decision.”
“But ...” Ayase had a worried expression on her face. He hesitated for a moment then tried to persuade her. It is too risky to use your 10 million dollars (Haru has turned two billion yen into 20 million dollars) to speculate on London gold. This is not real gold and the leverage ratio of 100 times is a very risky transaction.Gold is dropped several times then 10 million dollars will be lost.”
Haru was serious when he made this decision. It was a bet and he knew that he could lose, but he could also win this bet. He saw an opportunity and he decided to risk his money for it. He's gonna open his trade on London gold.
Gold futures transactions are different from other futures markets in that they have 15 times the leverage. That is, when you make a transaction of one million USD of commodities, you only need to have a deposit of 66,000 USD which is considered a high risk investment.
London gold has a leverage ratio of up to 100 times. A one percent margin is required, and the cost of the investment can be reduced to 1% of the actual cost. That is, you can use a deposit of 10,000 USD to get an item worth one million USD.
In terms of revenue, if you buy one lot for 1,000 USD per ounce (one lot equals 100 contracts). For example, you set 100 times the leverage of London gold and you buy one lot for 1,000 USD per ounce for 1,000 USD. If you sell it at 1,400 US per ounce, it will make a profit of 40,000 USD, which means you can make 40,000 USD for just 1,000 USD.
This is a very low investment with a high return. However, the risk is also very scary.
Wh why?
Because gold futures have a limit, but London gold is different because it has no limit. You can earn more profits, but you can also have more losses in these transactions. Fortunately, the risk can be controlled with a stop loss.
That was because with such a low investment Haru could get high returns which made him very ambitious. Coupled with fundamental factors, he also knew about the future which made him willing to take high-risk transactions.
“I want to use 10 million USD to invest in this and leave another 10 million just in case this transaction fails. I have seen after the financial crisis, the global currency depreciates, the quantitative easing of the United States, the European debt crisis often shows signs, and the gold market shows a bullish trend.” Haru looked at Ayase and said, “I want to give it a try.”
Ayase looked at Haru and sighed. He really bothered having such a young boss, but who made Haru his boss? He sighed and asked, “100 times?”
“100 times!” Haru replied firmly.
“OK, then, I'll order...” Ayase was very doubtful at this moment.
“Come!” said Haru. He stood behind Ayase watching her use 10 million USD as security deposit in exchange for 1 billion USD in 10,000 contracts.
Ayase took a deep breath and looked at Haru. He was very tired at the moment and said, “Alright, boss, I have made a transaction.”
Haru nodded and he just needed to wait for his harvest. He could do nothing and just waited to see if he would go to heaven or go straight to hell.
“Bos, what will you do with the remaining 5 million USD?” ask Ayase. He only knew that his boss was crazy. He would never have imagined someone making such a decision. He was looking for the remaining 5 million USD for his boss to let him and his team manage it. However, he would definitely be disappointed since Haru never thought of saving his money.
Haru has a deposit of 25 million USD and he keeps 10 million USD just in case he leaves only 5 million USD. “Have you opened the US stock market?”
“Yeah, I already proposed to him.” Ayase was a bit hesitant, but she quickly said, “Bos, we don't know much about the US market and we need time to gather data before we can start investing there.”
“No.” Haru shook his head and said, “I have made a decision. I will use all 5 million USD to buy Apple.” shares
Ayase was really not sure what to say back then. He felt that his boss was really reckless and he felt that the young man before him was the embodiment of insanity.
The insanity!
Ayase feels her head may be bald listening to her boss. “Bos! Need to think about it again! No one will put their eggs in one basket! The risk is too high and no one can guarantee every investment is right! To guarantee the security of principal, diversification of investment is the best.how to invest.” He tries to give Haru advice to stop this madness. He tried to stop his boss from the gate of death. He doesn't want Haru to fall to hell after Haru saves his life.
Haru was very satisfied with Ayase's persuasion, but she had to let him down. He patted Ayase on the shoulder and said, “Thank you, Ayase. I am not kidding with my wealth and I will not force myself to hell.”
Ayase, who saw Haru's stern expression, knew that it was impossible to change her decision. He was helpless and could only sigh at this moment. “W – Well, boss, you may be right ..” Although he has promised, his hand moves very slowly. He really hoped his boss would change his decision at the last minute.
“Apple stock price currently is $25.68..”.
“Wait for 5 million USD, buy everything,” Haru said.
Ayase let out a long breath at that moment. “OK boss.”
Click!
“Total 194,700 shares, and $104 left in stock account.”