Being a big shot in the stock market? Check some projects!!!

After hearing what Mitsui Masako said, Li Zhongxin showed a bitter smile on his face.

This time he came to Tokyo, he didn't think so much about it. Now most of his funds are already in the stock market, and they have made a fortune. He is preparing to slowly withdraw funds from the Tokyo stock market. It is impossible to be a big shot in the stock market.

And it is even more nonsense to examine some projects.

Zhongxin Company now has enough projects. If we do any further projects, I'm afraid he and Wang Bo will be in a state of turmoil.

This time he came to Tokyo, mainly to talk to Masako Mitsui about gradually withdrawing part of the funds from the stock market.

After withdrawing a large amount of funds from the stock market, Li Zhongxin wanted to start trading foreign exchange.

Foreign exchange trading is different from stock market trading. In the 1980s, the main trading model was the voice trading model.

When end customers buy and sell foreign exchange, they need to call the dealer bank. After the bank gives the quotation and is accepted by the customer, the bank inquires with peers in the interbank market and executes hedging transactions.

The interbank market and customer service market are clearly distinguished, and the interbank market completely excludes small banks and end customers.

Because a single transaction in the interbank market is basically over one million to five million US dollars, not only can end customers not enter the interbank market, but also can’t directly trade between end customers.

This traditional foreign exchange trading model has low market transparency, high transaction costs and operation costs, large spreads, and low degree of integration.

At this time, the transaction costs and operating costs are high and the spread is large. In order to collect information, traders often inquire about each other and even conduct transactions from time to time.

Traders therefore need to pass on some unnecessary positions until the position is accepted by an end customer.

At this time, since market information is widely scattered at the counter of traders, and traders or economic people are more facing customers in their own country or region, the international foreign exchange market is just a transnational link between traders and banks.

Li Zhongxin wanted to do foreign exchange transactions, but he took a lot of time some time ago and studied the books about foreign exchange transactions that Kyuki Kazuko mailed him.

Through these foreign exchange trading books, Li Zhongxin learned some things about foreign exchange in the 1980s.

At this time, most of them are in the mm model, that is, market makers. Companies that provide buy and sell orders for others are what we call a forex trading platform.

Marketing is the counterparty of investors.

Many times, the investor's order or the price of the order is not listed in the market. Simply put, the broker is the market.

They have a very obvious interest in investors' losses. If investors lose money, they mean profit.

Mm market makers Tongchang will never requote orders because they do not need to put the prices given by investors into the interbank market.

They just choose whether to accept your order or not.

In layman's terms, the mm mode is a bet mode, which easily forms a black platform.

Later generations Li Zhongxin came into contact with many black platforms, such as some micro-disk platforms, which were basically black platforms. They bet with investors below, but the trend was just for investors to see according to international trends.

The second mode! It is the stp mode, which is what we call broker.

Stp brokers are another form of market maker economics.

In this kind of economy, most of the time, it displays its own quotes, which are related to the quotations between banks.

The commissions of Stp brokers come from two sources, one is the loss after the customer fails, and the other is the commissions of successful users.

To put it in the simplest example, when you trade a spread of two points, the broker uses the same quote to make a spread of one point in the interbank market, or trades with another broker or bank without any risk.

In other words, it is difficult to ensure fairness with such a model.

Li Zhongxin came to Tokyo this time just to study with Masako Mitsui how they could avoid such a trading model.

It is now 1985, but there are no Internet things like later generations, and they will not directly trade on the Internet. Li Zhongxin felt that he had to find the most reasonable way to operate this matter.

When Li Zhongxin was learning some knowledge of foreign exchange trading, he also had a general idea in his mind.

At this time, the London foreign exchange market was Li Zhongxin's best choice.

When China just reformed and opened up, the UK had completely abolished foreign exchange controls and basically became a market that was only one. The foreign exchange trading volume continued to grow, and it maintained its first market position in the world at this time.

As a country where foreign exchange controls do not exist, the boundaries between the international market and domestic market of the UK foreign exchange market are not obvious. Domestic institutions can participate in international foreign exchange market transactions, and there are very few restrictions on foreign financial institutions to enter the UK domestic market.

It is precisely for this reason that cross-border transactions account for a relatively high proportion of the UK foreign exchange market.

More than 50% of spot transactions in the UK foreign exchange market are achieved through electronic economic systems and electronic trading platforms (this is a platform for single banks and multi-banks).

The provision of electronic foreign exchange transactions was developed by Reuters. This system, according to the standards of Li Zhongxin's later generations, was a very backward system. However, at this time in the mid-1980s, it was the most advanced trading system.

If the network has not been invented, then this system may be used until now.

The entities in London's foreign exchange market are composed of foreign exchange banks designated by the Bank of England (the clearing banks, commercial banks, other commercial banks and foreign banks) and foreign exchange brokers.

What Li Zhongxin wanted to discuss with Masako Mitsui was whether he would get a seat from the Bank of Tokyo that would directly enter the London foreign exchange market.

Li Zhongxin has a deep understanding of the foreign exchange market trend behind the Plaza Agreement. This is something he planned since he was reborn. He felt that this foreign exchange transaction must be conducted.

Li Zhongxin didn't want to be hacked most of his money by those bad platforms or other economic operators.
Chapter completed!