Becoming a Russian Oligarch After Rebirth
Chapter 308: How Much is the Change_1

Chapter 308: Chapter 308: How Much is the Change_1

The current stock market is indeed experiencing a "stock disaster", with the market plunging and all stocks plummeting!

Plus, the trading system of the US stock market is "T+0", which allows for immediate buying and selling, making it highly liquid.

There are also no limits to price fluctuations; even if your stock price is at ten thousand US dollars at one moment, it could potentially fall to one cent the next...

The range of price changes is simply astonishing!

Therefore, after the catastrophe that occurred today, the market sentiment has been severely affected, and it seems that everyone has become irrational.

Everyone is screaming, "Sell, sell, sell!"

It’s as if the country was about to be ruined...

But is this really the case?

How much of an impact does the catastrophe that occurred today have on various industries in the United States?

These are things that would require time and rational analysis.

Thus, the current stock market crash may just be an overreaction by everyone; once they come around, they’ll find that many stock prices are unreasonably low. At that time, it may become a situation of "Buy, Buy, Buy" ...

What Wang Ye mentioned about the "circuit breaker" is also very likely to happen.

The regulatory authorities cannot possibly watch as the stock market falls limitlessly, as that would trigger a series of disastrous consequences. Hence, they would likely be taking measures to counteract this immediately.

......

After understanding all this, Milna could no longer afford to say more; in a hurry, he said, "Boss, I got it! I’m immediately going to close out and cash in the profits from our positions!"

After he hung up the phone, a series of instructions were issued, and everyone in Milna’s small team began to operate nervously.

Reports continued to come in.

"Boss, I’ve sold everything here--very smoothly!"

"The accounts that I have been managing have also been closed out. I have exited the market smoothly."

"Profits have been realized!"

"Ha, everyone is shorting now. We’ve taken advantage of the situation and our short positions are very popular. The moment we throw them out, they are immediately snatched up."...

Realizing profits and exiting the market went smoothly, because, at this point in time, it could be said that all investors were filled with pessimism.

Perhaps someone would notice that the market reaction was excessive and that there would be a correction in the future.

But no one could guarantee to what extent it would fall before there would be a correction.

But there’s one thing that everyone understood: as long as you’re shorting at this moment and holding short positions, you stand to make a fortune!

Therefore, Milna and his team were able to realize their profits and exit the market very smoothly.

Talking about switching from short selling to buying, many people might not understand how to do it. Simply put, if you want to short a stock in China, your account needs to have the permission to borrow for margin trading, the threshold being that the account must have more than five hundred thousand CNY.

In the US stock market, it’s even simpler because any account can short!

In essence, shorting is buying on credit. If you are bearish on a stock, you can borrow shares through many methods and return them after the price drops.

To put it simply, if a stock is at one hundred dollars per share, and you are not optimistic about its market price, you would "borrow" ten thousand shares from your broker and sell them directly!

When the stock price plummets, say to one dollar per share, you buy back ten thousand shares to return to your broker, costing you ten thousand dollars.

Through this entire shorting process, you would’ve earned nine hundred and ninety thousand US dollars!

......

By the time everyone had closed out their positions, Milna had summarized the data.

The final profit was a dizzying number, 1,120,840,000...

Of course, he didn’t have to count to know how much this string of numbers amounted to, because he didn’t need to look at the numbers at the back, all he needed to focus on the first two numbers.

1.1 billion!

Calming himself down, he was just about to call Wang Ye to report when suddenly one of his subordinates shouted, "Boss, the US stock market has hit the circuit breaker! All trading has been suspended; the resumption time will be announced later!"

Feeling a chill in his heart, Milna was secretly glad.

Fortunately, he strictly followed Wang Ye’s instructions and without any hesitation, immediately ordered his team to close out their positions and "run".

If he had hesitated for a couple of minutes, or had been greedier, he might not have been able to get out!

That’s how it is with finances - no matter how much you earn on paper, it’s just a number.

Until you completely cash out and exit the market, the money you’ve gained is not really yours!

At any moment, a "black swan" event or a sudden news development could turn your paper profits into illusions...

Now that all trading in the US stock market has indeed been suspended, once trading resumes, market sentiment will probably have calmed down, and stock prices may start rebounding. By then, it won’t be as easy to exit, not to mention the profit margin would be smaller!

At this point, Milna was truly impressed with Wang Ye!

As for how Wang Ye "predicted" that there would be an avalanche in the US stock market recently, Milna was completely at a loss.

Of course, he wouldn’t link Wang Ye to the events that happened today...

However, with regard to Wang Ye’s decisive command to close out positions and cash in profits, Milna truly admired it.

If it had been anyone else, including himself, facing the temptation of huge profits, it would be difficult to control oneself!

If it weren’t for Wang Ye’s command, he certainly wouldn’t have wanted to close out his positions and exit the market immediately, because he still wanted to earn more...

But if he had waited just ten more minutes, it would’ve been "closing time"--all trading would’ve been suspended!

He was so close, just nearly missed making an exit!

......

He dialed Wang Ye’s number and reported that everyone had exited all positions and the total profit reached 1.12 billion US dollars!

Even after hearing this figure, Wang Ye was a bit shocked.

Because this money came too easy!

From the time he started borrowing money to when the capital entered the market, and all the way till the day they cashed out, he used only eleven days!

The result was that he earned 1.1 billion US dollars, which is equivalent to earning 100 million a day...

"What should we do next? Do we need to transfer the money back to Russia?" Milna asked again.

Wang Ye shook his head, instructing: "For now, the funds needn’t be moved. Because our Polar Bear Investment company will soon be setting up branches in the United States, this money will be converted into shares of the investment company, acting as the startup capital over there. Oh, transfer the spare change to my personal account."

Milna foolishly asked, "The spare change? Is that just over 80 million US dollars?"

"No, it’s over one billion. Just leave an even ten billion in the account" said Wang Ye.

The reason he left ten billion US dollars was of course due to the agreement he made with Khodorkovsky to invest in Polar Bear Investment company.

For Wang Ye, the extra one billion plus US dollars was undoubtedly just spare change.

He could just transfer it directly into his personal account because he would need the money for many things later on.