After the Divorce, I Could Hear the Voice of the Future-Chapter 28: London Gold Market

A new week began, and Chinese Online welcomed two consecutive daily limit increases, with the share price reaching 41.65 Yuan, setting a new historical high.

For the third time, it topped the Dragon and Tiger List, becoming the hottest stock in the market since Baofeng Technology earlier that year.

"Even if predictions are incorrect, the sound won't disappear," Luo Liang reflected, "but the outcome can deviate due to human factors."

In the past two days, Luo Liang chose to empty his portfolio and observe, missing out on two daily limit increases but indirectly confirming his speculation.

The information provided by the sound wasn't 100% accurate, because its very existence was the biggest uncertainty.

Having earned 12 million from Luo Liang, the main forces could only force the stock price even higher, otherwise, their funds would be easily trapped inside.

"The sound will ring at midnight."

"Could the trigger condition be related to the transaction touched upon?"

Luo Liang noted his reflections in his notebook, then tore out the page and tossed it into the ashtray.

He lit a cigarette, took a deep inhale, and exhaled the smoke, watching the flames dance in the ashtray.

Until the ball of paper burned down to ashes.

At night, Luo Liang sat alone in his study, browsing financial news, quietly waiting for the midnight chime.

Today the Shanghai Stock Exchange Index achieved a four-day winning streak, officially breaking through 5100 points—the entire market was nearly insane.

Former colleagues in the social circle were also posting photos of long lines at the housing authority. This craze, lasting several weeks, was filled with people either selling homes or mortgage properties to speculate in stocks.

"Is such prosperity even possible in our country?"

With these past days of holding an empty portfolio to observe, Luo Liang had ample time to study the market.

Being a seasoned real estate professional, he was acutely aware of the significance of real estate to the domestic economy.

One could say, the three major financial boards combined weren't even a match for a single hair of the real estate market.

A house on the market priced at a million could bring in tax revenues upwards of five hundred thousand or more, with the remainder, after deducting labor costs, belonging to the real estate development group.

Real estate was linked to too many industries, such as building materials, home furnishings, appliances, and hundreds of others, creating a vast number of job opportunities.

Now, everyone was selling their homes to invest in stocks or using the money intended for buying homes to speculate. Could this really be what the country wanted to see?

Probably not.

"The bull market is likely coming to an end."

Luo Liang stubbed out his cigarette and took a sip of coffee.

At midnight, the clock chimed, as if a voice from another world echoed in his mind.

[June 5th, London Gold, 1517.2500 points]

Luo Liang was astonished. He had considered many possibilities but hadn't anticipated international spot gold.

Because it originated in London, thus named London Gold, it has a history of over 300 years and is the world's largest spot gold market.

With daily trading volumes of approximately 20 trillion US dollars, equivalent to 25 times that of Big A, no consortium or institution could manipulate it; the market solely relied on spontaneous regulation.

"The current price is 1347.1200 points, nearly a 160-point increase." Luo Liang narrowed his eyes, excitement flickering within.

Gold had always been the most stable primitive currency since ancient times. Unless a major global conflict arose or there was a financial crisis, prompting large funds to seek safe havens, the price of gold would only steadily climb with inflation.

Because of the small price fluctuations, leverage of at least a hundred times was provided, hence the four decimal places after the point.

A 160-point increase might seem insignificant, but with proper handling, turning a hundred thousand into a billion wasn't out of the question.

This also indirectly confirmed Luo Liang's guess that the domestic bull market was ending. Large capital was flowing into the gold market for risk aversion.

The night grew late, but the light in the study remained on.

Lu Liang smoked continuously and sipped his coffee without pause, acquainting himself with the trading rules and methods of London Gold.

London Gold trading was different from the trading method of Big A stocks. To be precise, Big A is different from the financial markets of the world.

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Globally, only Big A adopts the T+1 trading system, where you can only sell tomorrow what you buy today and can only go long, not short.

Except for Big A, all stock markets, funds, foreign exchange, and other financial markets adopt the T+0 trading method, allowing you to buy and sell on the same day, going both long and short.

This kind of trading method benefits institutions but is not advantageous for individual investors. Although it was initially set up to protect individual investors, it was eventually exploited by institutions continually finding loopholes.

London Gold differs from domestic stock markets not only in its T+0 trading method but also in its trading hours.

Trading operates non-stop for 24 hours a day, from Monday evening to Saturday early morning, with the market closing only on weekends.

Starting at three o'clock in the afternoon, Yanjing time, it is divided into the European session, American Plate, and Asian session, fundamentally following the daylight hours of each continent.

The most active trading period each day is from 10 pm to 5 am Yanjing time, with these seven hours contributing nearly half of the total trading volume for the entire day.

This time frame is the afternoon for the European session and the morning for the American Plate, with their combined activity far surpassing that of the Asian session.

By three-thirty in the morning, Lu Liang had essentially grasped the basics. Although there were still some points he did not understand, he planned to learn through practical operation.

He logged into his brokerage account to exchange ten thousand US Dollars, using a 400 times leverage, and decisively entered the London Gold market.

The leverage rate of London Gold is high for two reasons: one is that the fluctuation range is small, and the other is that the entry threshold is very high.

Each transaction requires a minimum of one lot, where one lot is equal to 100 ounces, and 1 ounce is equal to 31.1035 grams of gold.

With the current international gold price at 272 RMB per gram, 100 ounces is equal to 3110.35 grams, so one lot requires 846,000 RMB, which is 133,200 US Dollars.

Lu Liang exchanged ten thousand US Dollars, with five thousand as margin and the other five thousand as his available capital.

After financing, two million US Dollars could only buy 15 lots.

Lu Liang didn't go all-in like he did in the Big A market, but started by buying five lots long to observe the market conditions.

Each time the market fell by three basis points, he would buy another lot, because if it fell more than five basis points, he would face a margin call.

If the margin was insufficient, he would continue to add money to the margin account.

At five in the morning, although this wave of market movement did not start, there were already signs of it, as the gold price trended slowly upward.

Lu Liang's total investment reached eighty thousand US Dollars, of which forty thousand was margin, and his holdings amounted to 16.17 million US Dollars.

14 million was from financing, and only 170 thousand truly belonged to him; subtracting the principal, he had a profit of 130 thousand.

"At an exchange rate of 6.35, that's a profit of over 800 thousand?" Lu Liang couldn't help but be amazed. The money had come too quickly.

He barely did anything, just adding to his margin when the market dropped and holding on and watching when it rose.

However, there was one time during the trading session when the market fluctuated wildly, with a sudden drop of four basis points, and he almost faced a margin call.

Fortunately, he had enough backup funds, and Lu Liang hurriedly added another twenty thousand to the margin to avoid forced liquidation of his positions.

High leverage is all about excitement,

Complete focus, not a moment of carelessness is allowed.

In early June, stepping into summer, and past five o'clock, the sky began to show the first light of dawn.

The American Plate's trading time was about to end, and the market activity significantly decreased.

Lu Liang rubbed his eyes and forced himself to stay awake, as the Asian session was next to take over.

If his prediction was correct, the daytime Asian session would erupt with activity no less vigorous than that of the European and American sessions.

Lu Liang exchanged his money in advance, converting 5.84 million RMB into 920 thousand US Dollars, and transferred it all into his London Gold account.

His account still had more than four million in available capital, but he had no more quota for exchanging US Dollars.

With all preparations complete, Lu Liang stepped out of his study, planning to take a shower and have breakfast to rejuvenate.

Now that there was more than 900 thousand in margin in his account, he didn't need to worry about the mid-session volatility leading to a margin call.