Super Island Tycoon-Chapter 740 - 739 Short Selling

You must know the professionalism of the financial industry is very strong, although having ample funds is a capital, if the operation is not good, no matter how much money you have, it won't be enough to cover their losses.

If you are unlucky with stocks and futures trading, hundreds of billions of funds can evaporate in an instant.

Actually, Zhang Manlin wasn't puzzled about Jiang Cheng's intentions, because he is just that kind of willful person.

Anyway, Jiang Cheng has always been displeased with those people in the financial industry, wanting to teach them a lesson is very normal.

What really puzzled her was how Jiang Cheng could be so confident, saying with certainty that he could make money.

With Jiang Cheng's intelligence, it's impossible he doesn't know how deep the waters of the financial industry are; is it unwise to rashly undertake such things?

Jiang Cheng found Zhang Manlin still staring at him doubtfully, and could only continue to explain helplessly.

Well, actually I am preparing to dabble in the futures market because I have 100% confidence that I will definitely make money in it.

That's why I suddenly thought of having a go, making money while also toying with those futures traders.

Jiang Cheng's confidence in mastering the futures market actually came from a phone call he just ended.

It was through Xiao Peng's reminder over the phone that he remembered the matter of platinum.

A massive amount of platinum is about to be transported back to Earth, and this is bound to cause significant ripples in the precious metals trading market.

By the time this platinum arrives on Earth, who knows how much lower the platinum price would drop.

This time the rocket is transporting back five hundred tons of platinum ingots, not because Jiang Cheng didn't want to transport more, but because the rocket's capacity has reached its limit.

If the Icarus I1 rocket makes a round trip between Earth and Mars, it can carry a maximum of five hundred tons of cargo.

If the rocket's load exceeds this range, the nuclear fusion fuel on board may not be sufficient.

Don't look at the number five hundred tons as insignificant in an industrial age; those in the steel industry produce billions of tons annually.

But if you add this five hundred tons in front of platinum, then that becomes a terrifying number.

The reserves of platinum on Earth are extremely low, and the annual output is just that little bit.

It's precisely because platinum is so rare that its price is more expensive than gold, with an annual platinum production of about eighty-five tons on Earth.

This time, five hundred tons of finished platinum have been brought back, already surpassing Earth's annual production sixfold.

This means Jiang Cheng brought back six years' worth of Earth's platinum production from Mars at one go.

Flooding the market with so much platinum at once, the price of platinum will instantly drop significantly.

Moreover, this is only the first batch, and the production on Mars will only increase in the future.

Although Jiang Cheng does not plan to sell this platinum, just the news can have a huge impact.

Currently, Jiang Cheng has not disclosed what he did on Mars; people only know that after establishing the Mars Base, five astronauts stayed on Mars.

If Jiang Cheng says those astronauts are helping him mine platinum on Mars, the precious metals trading market would instantly be in turmoil.

Especially the platinum futures market, it would certainly be messed up by him.

Therefore, when Jiang Cheng first started mining platinum ore, he was already prepared to enjoy the show.

Only now has Jiang Cheng changed his mind, planning to personally make money while simultaneously toying with those people.

With five hundred tons of platinum in hand, Jiang Cheng can control the price of platinum.

Knowing that the price of platinum will inevitably fall, he realized that he can make a big move on platinum futures this time.

Futures trading is a major part of the financial industry, and at the same time, Jiang Cheng found it to be the riskiest financial transaction.

In futures trading, you could potentially lose billions in a second, and such events have occurred more than once.

Futures and spot trades are fundamentally different, as futures are commodities delivered over a period of time.

This type of future time-traded commodity has spawned a financial market.

Simply put, the futures market is a game of commodity prices, where everyone predicts the future price of a certain commodity and makes long and short trades based on those predictions.

If your prediction turns out to be correct in the end, you can make a big profit in the futures market; otherwise, you'll lose miserably.

The futures market is essentially a gamble between two parties, betting whether the future price of a commodity will rise or fall.

If you believe the price of a commodity will rise in the future, you can go long in the futures market; if the price rises, you profit, otherwise, you lose.

If you believe the future price of a commodity will fall, then you short it in the futures market, following the same logic as going long.

It's just that the camps are different; when someone gains, others will lose.

Simply put, the futures market is a huge casino, a zero-sum game, where someone profiting necessarily means someone else is losing.

Since Jiang Cheng can predict that the price of platinum will inevitably fall, he can fully short the platinum futures market.

Then, when the rocket arrives on Earth and the platinum price drops, he can make a fortune.

Of course, he would also let those who went long lose so much they wouldn't even recognize their mother.

Actually, the futures trading market is far from simple, and short-term operations have many nuances.

However, this time Jiang Cheng plans to make a long-term operation, starting to short now and continuing for four months.

Anyhow, he doesn't have a problem with funding, so even if the platinum price temporarily rises, he won't be liquidated due to insufficient funds.

As long as he has sufficient funds, those opposing him are doomed.

After all, the price of platinum is bound to fall in four months; as long as he keeps shorting, victory will be his.

Even if there's a temporary loss due to a rise in platinum price, it can be recouped in one go eventually.

Jiang Cheng speaks so confidently because he has unlimited funds and the ability to control the platinum price.

Once Jiang Cheng told Zhang Manlin about the platinum issue, the CEO's doubts were dispelled.

She now truly believes Jiang Cheng will definitely make money and cause his opponents to instantly lose until they go bankrupt.

Yet, right after shedding her doubts, Zhang Manlin became extremely excited.

Being able to stir things up in the financial market has been her dream for a long time.

This time, with the chance to make a risk-free profit in futures trading, her anticipation is beyond words.

Then you get busy signing the documents, I'll handle the trader's matters right away, and find you the best trader for sure. We must make a good profit this time.

After saying this, Zhang Manlin left Jiang Cheng's office directly, but she didn't forget her responsibilities; even when leaving, she would let Jiang Cheng finish his part.