How Soros made Money

Key words: Soros, Bank of England, Thaid, Hongkong, pound,

To make his profit happen, he need to drive down the value of the targeted currency:
Borrow targeted currency (from the targeted country maybe), sell it in exchange market to drive its value down.

then the profit making ways are

  1. when repurchase the currency to payback to the borrower, cost is lower. (1992, Soros borrowed pound to buy mark. After pound dropped, he used less mark to repurchase pound to payback to the borrower, then he made extra mark in hands.)
  2. create short position on pound (future: enter contract to sell pound; option: buy the right to sell pound or sell the right to buy pound)
  3. long the stock market in England case, because currency value drop, stock market rises (share become cheaper to purchase for foreign investor, foreign capital come in).

简单的说就是:抛售泰珠使其贬值,同时购买泰珠的看跌期权,泰珠跌的越多他赚的越多, cited from baidu know-how

据《经济学家》的报道,量子基金确实早在1997年3月就大量买入看跌期权,以掉期方式借入大量泰铢,卖出泰铢期货和远期,因料定交易对手要抛出泰铢现货为衍生合同保值,轻而易举地借他人之手制造泰铢贬值压力。值得一提的是他在香港的做法,更是立体投机的经典例子。

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