Thursday and Friday went by, and I spent most of the ti prepping for upcoming exams, going over material I hadn't touched in a while. 30 years to be exact...
During those two days, the ruble was in a constant battle with heavy sellers, but it was showing signs of resilience, slowly gaining ground.
And together with Immortal investnts, we were adding fuel to the fire, making Rubel stronger.
Immortal Investnts started building their short position on USD/RUB.
I was still on the opposite side of things, but I was gradually offloading the last of my long USD/RUB position.
By the ti I closed out, I'd managed to exit at an average of 40.12/RUB for the final billion dollars.
That added another $407 million to the profit pile.
[FOREX]
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[Total Balance: $1,189,181,626.93]
[Margin: 1:10]
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[PROFIT/LOSS DETAILS]
[USD/RUB LONG]
Opening Exchange Rate: 28.52 RUB
Average Close Exchange Rate: 42.72 RUB
Margin Fees: 0.2%
Profit/Loss Closed: $989,181,626.93
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Beyond my FOREX account, I was also offloading my stakes in Chinese companies.
At this point, my brokerage account had only cash in it.
[Charles Schwab]
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[Total Balance: $543,552,915.37]
[Available Balance: $543,552,915.37]
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[Market Value of Holdings: $0.00]
[Buying Power: $1,500,000,000.00] (4x Leverage: Futures Trading)
[ALERT] Your buying power has reached a limit.
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Recent Operations:
[Futures Sell: $APA, Amount: 3,389,172 , Average Sell: $98.31, ...]
[Futures Sell: $TK, Amount: 6,316,595 , Average Sell: $51.81, ...]
------------
Charles Schwab had raised my buying power limit from $1 billion to $1.5 billion. This would definitely co in handy when I started grabbing more of Google, snatching up shares of Apple, and other growth stocks.
After the weekend, on Monday, March 15th, the ruble continued to slide up.
It was ti to buy rubles.
Sitting in my office, I decided to go big and tried to enter a $4 billion short position on USD/RUB.
The transaction didn't go through.
Well... I was half expecting that.
However, the reaction from Charles Schwab was imdiate.
Just a minute after my failed attempt to open a position, I got a call from John Curtis, my helping broker.
Alternatively, I recalled the man as the gym bro I t in Orlando.
I picked up.
"Good morning, Mr. Somnus," John greeted professionally.
"Morning, John," I said. "I'm pretty sure I know why you're calling..."
He chuckled lightly. "Well, it's not every day a VIP client tries to open a 4 billion dollar position. I wanted to follow up on that."
"Yes, I tried to enter that position, but it didn't go through. I presu that you have set up limits on the instrunt?"
"Right. Here's the situation: we can't allow more than $1 billion of leverage on any ruble exchange, even for clients like you, Mr. Somnus."
"What about the trades I executed over the past two weeks? There was $1.8 billion in leverage on those positions. I even generated over $3 million in fees for you."
"That's accurate," he conceded. "However, when those positions were opened, the volatility was significantly lower, and the regulations were different. We can't take that risk now."
He paused, gathering his thoughts. "With such high leverage and large market movents, the cash provided can quickly beco insufficient to close a losing position. We cannot afford to be in that predicant."
I considered his words for a mont. "What if I put up $1.5 billion in cash?"
John hesitated. "Wait... you want to invest $1.5 billion in rubles in the current situation? Seriously?"
"Would you be able to offer a $3 billion loan if that's the case?" I asked, confident in my strategy.
There was a mont of silence on the line, but I could hear the gears turning in his head. "I'll need to check with my higher-ups about that. Let redirect you to a director at the brokerage. Just hold on a mont while I speak to them first."
"Sure thing, John."
After a brief wait, I was connected to a director of the brokerage.
After evaluating my request, they inford that they could authorize a $3 billion loan at a monthly fee of 0.4%.
This fee was significantly higher than usual for forex trades—almost double what I'd typically encounter.
Nonetheless, I agreed.
From Monday until Wednesday, March 17th, my short position began to fill.
I was effectively borrowing 4.5 billion dollars and selling it in the market for rubles.
At the start of the trade, I received a whopping 168,705,000,000 rubles at an exchange rate of 37.49 rubles per dollar.
My strategy hinged on the dollar weakening against the ruble.
When it ca ti to close the position, I would buy back the $4.5 billion at a lower price than the one I had borrowed it for.
This ant that once I returned the dollars, I would keep any excess rubles I had acquired during the trade.
------------
[PROFIT/LOSS DETAILS]
[USD/RUB SHORT]
Opening Exchange Rate: 37.49 RUB
Current Exchange Rate: 36.29 RUB
Exposure: $4,500,000,000
Profit/Loss: RUB5,400,000,000 ( $148,801,322.67)
------------
I wasn't asking for an even higher loan for a few strategic reasons.
First, while the potential profits from my ruble position looked promising, I needed to consider the fact that eventually I would want to exchange the rubles back into dollars.
This conversion will push the dollar's price up due to the increased demand, which could negatively impact my profits.
Second, given the current volu on rubel related instrunts, it wouldn't be wise to overextend my exposure. I had to keep in mind that a sudden influx of dollars being sold off could create market instability.
Immortal Investnts had already taken on $3 billion in exposure, so that makes it even harder to not crush the market prematurely.
The average daily volu before the invasion was around $5 billion. However, that number had surged in the last two weeks to between $25 billion and $30 billion, with the last couple of days witnessing over $40 billion in transactions.
A significant portion of that activity was driven by and Immortal Investnts entering short positions on the dollar, prompting many others to adjust their positions.
The market reacted to my moves.
...
In the evening I was sitting in the living room with Charlotte when my phone rang.
I recognized the number imdiately.
It was Jacob McCoy.
"Hey, Jacob, it's been so ti. What's up?" I answered enthusiastically.
"Yo, Jack! I wanted to give you a heads-up about sothing. I'm planning further expansion and will be bringing in more investors for a second round," he said.
Six months ago, Jacob took out a $100,000 loan to get his company off the ground. In that short ti, his car chanic business had blossod. Continue reading on mvl
He'd opened two new locations around Orlando, so his company was now totaling four shops.
Thanks to an influx of clients and revenue, the bank was more than willing to support him.
But it sounded like he didn't want to take more loans, but he still wanted to continue expanding the business.
"I an, that sounds great. I've seen the revenue at the new shops is doing just as well as the first one," I replied. "You don't need to look far for investors. I'd be more than willing to be part of that second round of investnts. Don't count out yet, Jacob."
He chuckled. "Oh, and guess what? I convinced my parents to invest in Blizzard, and I also put so of my own earnings into it. We made like a 30% gain over a few months! It's nothing compared to you, but it still feels nice."
"And there's one more piece of news," he continued. "I proposed to Lucy, and she said yes!"
I was taken aback for a mont. "Holy shit... I an... Wow." I replied, a smile creeping onto my face.
It was amazing how the small changes that I have caused, over ti completely changed Jacob's future.
Just two years ago, all he did was talk about smoking weed and picking up girls, and now he was engaged and was managing his team at his successful company.
"That's incredible, Jacob. Congratulations to both of you!" I said, glancing over at Charlotte, who was sitting next to on the couch. She was looking up at from her book, wondering what made react like that. "I'd love to et up with you and Lucy soti—maybe I could bring my girlfriend along too."
Charlotte raised an eyebrow, looking intrigued.
She hadn't t Jacob yet, but she'd heard ntion him a few tis.
"What happened?" she asked.
"Jacob got engaged," I told her with a grin.
She smiled. "Wow."
"Wow indeed.
On the phone, Jacob seed excited about the idea of eting up. "Definitely! Let's set sothing up."
"When?"
"Hmm... damn," Jacob hesitated for a second, clearly going over his schedule in his head. "I'm a bit tied up for the next two weeks, but how about Friday, April 2nd?"
"Okay, okay," I replied, nodding. "Where and what ti?"
"Would you have any trouble getting to Orlando?"
"No problem."
"Alright, let's et up at Eola Park at 5 p.m.," Jacob suggested.
"Sounds good," I agreed.
"I'll need to confirm with Lucy," he added quickly.
"Perfect. Let know once it's locked in."
Eola Park.
That's where everything started... It might be interesting to get back there.
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