In 1999, I served as the "trading room director" at the largest Hang Seng Index futures platform in Shenzhen. In addition to supervising and monitoring dealers' quotations to clients, my responsibilities included reconciling daily accounts and reports.
More importantly, I was in charge of the slippage when dealers quoted prices to clients. Whether to increase, decrease, or widen the slippage was all based on my instructions, which was crucial to the company's profitability.
Of course, I was also responsible for offloading orders. If our company's long and short positions were unbalanced, I had to decide whether to offload orders to Hong Kong. However, if orders were offloaded, the potential client losses that could have been incurred would be missed. I needed to assess the trend to determine whether to offload orders. I remember I never offloaded orders, which brought huge profits to the company.
Not only did I not offload orders, but at that time, many small Hang Seng Index futures companies in Shenzhen offloaded orders to control risks. Our company was the final recipient, accepting all orders. I personally quoted prices for these offloaded orders, and many of them knew each other. When we gathered privately, they were all afraid when they heard my quotes.
One time, the company made 300,000 in a single day. The boss was very happy and treated the trading room and senior management to a meal. The boss, a Chinese American (surname Zheng), ran underground casinos in the United States. After a few drinks, I asked the boss, "We made a good profit today. What if a client makes 1 million in the future? What should we do?" Boss Zheng didn't even look up and said, "Definitely can't give it to them. It's a matter of principle." At that time, I was young and felt a chill in my heart.
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