it's ironic because this scene is based off Liz Truss' disastrous budget, which caused UK mortgage holders to lose thousands per year in extra interest
@@User-mncbjlfjrebxkl most of the dialogue was. It's pretty riveting at times but if I hear another person call it brilliant I'll lose my mind. It's completely over the top, the characters have the same exact arc every season and episode for that matter, and is completely one note.
along with the absolute irony of the WGA and SAG unions going on strike at the same time this season was being shot (the actors were covered with Equity (UK) contracts so it was fine). A ton of this show was filmed in Cardiff and Bristol in the UK!
@@shaohoong that's the point tho. Harper gave him confidence to buy at the bottom, which would have been the majority of the profit. the 18 million profit would be closer to 5 million. Also, if I was Harper I would be fucking MAD
Yea Eric (Ken Leung) is good at gesturing and body language. A good speaker too, (besides that last dinner with Yas) but when he speaks I think his voice commands attention.
Lets go Rishi! Best fucking character. One of the best scenes in the show! Funny how Rishi and the Arabic guy had beef earlier then they executed a sweet deal together! Thanks for uploading!
This episode shut me up. I never thought that Rishi was going to have a character development at the beginning of the episode. They perfectly portrayed what toxic masculinity is and how it affects. One of the best episodes of the show.
@@Andy-nv6ys Agreed! You can have the moral superiority. I’ll take the 18 sticks and the associated quarterly commissions and tear-end sweetener. Great trade! I love it when everyone gets what they want!! 😄
The desperation of Rishi’s sale and their quick willingness to take the trade, it really was brilliant foreshadowing, and the elevator scene afterwards on the man’s downfall
Harper could just as easily said she was a seller of pounds just to screw with him, and Rishi would have been DESTROYED. Always trust your own sources people.
1 billion position to make to 18mil, that’s less thn 2% return.. he was down 39 million on a 700 mill position, which is 5.5% 😂 the the RR here is absolutely insanity. Gotta love rishi
You missed the “across our books” part… so the fund or whatever they’re managing each account averaged $18mil in profit. Who knows how many accounts they have wrapped into one fund. And then you watch the charts…. That’s wayyyyyy more than 2%. Literally the entering trade and exiting trade are 700 BP’s but he was already in the red so that are out his return but at least made the investment solvent.
He just got rewarded for breaking all the unbreakable rules in trading, oversizing, not cutting losses, doubling down on a losing trade. risk management never should've allowed this to happen. and he did get lucky, same way he got lucky at black jack before proceeding to give it all back later on. he thinks he's a genius and master of the universe on a fluke. The hopeful side of me is he realizes what he did and comes around to realize he has a kid and a wife that he needs to look after. But judging by how he decided to take another tip (another unbreakable rule btw) from his loan shark pimp, Rishi is fucked.
@@sunnydays405 what's funny? you think the dozens of people who work on this show *don't* want the audience to 'yap'? It's a compliment to their work when someone talks about it. If you don't care then piss off and watch something else
@@sunnydays405I enjoyed reading what he wrote. What do you have to contribute? Like the show makes Rishi feel bad about his toxic masculinity, you're just a misandrist.
as someone who works this literal job, lol Harper is calling to buy (you can hear Yasmin tell him) normally hedge funds or fast money don’t give direction, here they did
Show actually portrayed this accurately also. theyre trading GBPUSD. as we know if the FED gives data/ implications that we will hike rates DXY (dollar index) will rally higher, and XXX USD quoted pairs will decrease. now if BOE raises rates/gives data that theyre gonna raise rates this cause BXY to increase (pound index) BUT since GBP is the base currency here, GBPUSD will rally, hence what happened in the show, wild
This episode was actually based on real-life events of September-October 2022, when the new Liz Truss government announced the Mini Budget, crashing GBP. After only 1 month, they had a new cabinet, with a new Chancellor, who reversed the Mini-Budget entirely, as well as announcing Rate Hike. This scene shows the exact moment of announcement to reverse, which led to GBPUSD rally from the lows of 1.07.
The UK is a country. British is a nationality, not a race. Brown people can be British. Keep up ol' chap or you'll be sent back to school at this rate!
Do we know how Harper knew? Edit- used my brain and it must be Henry Mucks insider cronies Robert was introduced to end of episode 5. Harper will likely be revealed to be part of the crew as a fellow “rebel”
The premise of this doesn’t really make sense. Banks dont have prop books anymore, in reality Rishi wouldn’t be taking overnight risk, he’s a sales trader so they just earn the spread and hedge out the risk. He wouldn’t ever be in a situation where he’d have a long term directional position like that. In reality his position would have been stopped out and he would have been shown the door. The show kind of conflates the role of a sales trader with that of a buyside portfolio manager.
@@imammo867no that’s not quite accurate. Basically none of the large investment banks have prop desks anymore, however they do take some amount of directional speculation through over/under hedging client flow. Regardless, Rishi’s role is clearly a sales trader, he wouldn’t be taking large directional bets like this and he wouldn’t be sitting next to sales people. Even before Volcker when prop trading was still widespread, the prop traders certainly wouldn’t be sitting with sales people trading off of client flow.
@@georgikirov9197 did you see the show? He’d built up a nearly $1bn position (they say ‘almost a yard’, yard = billion) over many days/weeks. That’s the whole premise, that he’d been digging a deeper and deeper hole. In reality, the risk team wouldn’t be politely calling to find out what’s going on, the position would be stopped out and he’d be fired.
How much is the sales credits? Why is the salesperson still listening to him if the position go bust their desk is done and they not gonna receive any comp.
did he get beat up? I also saw a video where this guy's wife confessed to cheating on him. And he has a gambling additiction. The man's going through it. Can someone explain more about his character?
@@Neojhun lol no .. Tudor is the name of a client, Salesperson found a seller of GBP for Rishi, she asked Rishi for his bid (a buyer) in 180m GBP for Tudor (a seller)
So basically, the UK announced an emergency budget which involved among other things raising capital (through gilts or UK bonds) and a top rate tax cut (which benefits high income earners). Apparently (this is something I picked up from context), the government might have been on a fiscal deficit (they are spending more than what they earn-through taxes), they need more capital and they do that by issuing debt. When annouced, sterling weaken (which was the contraty to what Rishi was hoping since he was long sterling) and bond market collapses with yields exploding. In this scene, the government reverse all of their plans; giving confidence to the market that the government is not as bad as they thought they were, thus investors believe in the country again and rush back to buying sterling making it rally and Rishi's position above breakeven (actually he came out with a profit lol).
be careful of what you see on television because most of it is not real. in the real world, this type of stuff is no longer possible as financial regulators heavily crack down on poor risk management ever since the 2008 financial crisis happened. traders first of all rarely take directional bets at that large of a scale; at a certain risk amount, their accounts would have been frozen and would require higher ups to sign off before taking on more risks. secondly, if he exploited system errors to take on larger risks than he was qualified to do, that could result in a prison sentence; it's no joke, he would be sitting in federal prison for a few years. so while aspects of the scene are accurate, some are entirely not. you simply cannot do that type of shit at a bank nowadays.
rishi, currency trader, makes profits on currency spreads, i.e buying a currency for low and selling it high. The spread is profit. In this scene, traders are expecting a chancellor announcement on British pounds interest rate. It is essentially a “coin flip” to predict Bank of England interest announcements (though some insider trading can occur). But in short: - Higher interest rates = better return on GBD = more demand for GBD and increasing (appreciating) currency - Lower infested rates = decreasing return on GBD = less demand for currency and lower prices (depreciation) Rishi received a tip from Harper, former colleague, that people are buying bounds (i.e expecting interest hikes). He then positions him self as a currency buyer 5 minutes before interest rates announcements. BoE announces an unprecedented interest rate hike (assuming to combat COVID 19 inflationary pressures) and GBD appreciates (increase in value) immediately. Rishi then exits his long position (i.e buy high sell low) and sells his GBD, taking advantage of spread. The firm makes a nasty profit from predicting that BoE was going to increase interest rates. Hope this helps.
rishi, currency trader, makes profits on currency spreads, i.e buying a currency for low and selling it high. The spread is profit. In this scene, traders are expecting a chancellor announcement on British pounds interest rate. It is essentially a “coin flip” to predict Bank of England interest announcements (though some insider trading can occur). But in short: - Higher interest rates = better return on GBD = more demand for GBD and increasing (appreciating) currency - Lower infested rates = decreasing return on GBD = less demand for currency and lower prices (depreciation) Rishi received a tip from Harper, former colleague, that people are buying bounds (i.e expecting interest hikes). He then positions him self as a currency buyer 5 minutes before interest rates announcements. BoE announces an unprecedented interest rate hike (assuming to combat COVID 19 inflationary pressures) and GBD appreciates (increase in value) immediately. Rishi then exits his long position (i.e buy high sell low) and sells his GBD, taking advantage of spread. The firm makes a nasty profit from predicting that BoE was going to increase interest rates. Hope this helps.
His job is to make educated bets with the firm's money. He made a very big bet with more money than his firm would allow. He was in a tough spot but things turned out all right when his bet turned out to be correct.
@@rogelioarmentasolorzano3848 He was long in a position he wanted to get out off until Harper called him. Therefore would he not have been axed in favour of selling. After the call he became a strong buyer. I get when he thought that Harper knew that Sterling would go up that he chose to buy more. It is the axed statement I don't quite get.
@@johnham4485 So Rishi trades on behalf of Pierpoint so all the money he makes is theirs, In this scene he was in 39 million loss and by the end of 2 minute trade he was positive 18 million. So he netted 57 millions in the two minute trade and offloaded the position. So he made around 5.7% gain on a billion within 2 minutes which is a lot when considering the trade size.
If you have ever traded FX, you would know that the FX market's moves are only in the order of 4 decimal places. Movements are not in whole numbers and are very small. That's why currencies are used as medium of exchange. You do not want the Pound to behave like Bitcoin which could lose up to 10% of its value in a dump in 1 minute. Anyway, these small moves mean that the positions have to be leveraged. So if the term were to use a leverage of 1:10, it means the firm only needs to commit 10% of the yard into that position, which is 100 million pounds. The rest of the capital is leveraged. Any profits or losses are calculated as if you were putting up the entire money. So a return of 18 million pounds on a 100 million investment is 18%: it is phenomenal. Most hedge funds, companies, etc, that really outperform do not even make more than 30% annualized in the Western markets. Only emerging markets offer much higher rates of return.
Rishi, the only guy who has beaten HR & Security from PierPoint 😂🔥
As a trader, I agree with the last dialog " no difference between lucky or good trader"....ultimately it's the money that matters
It’s about Conviction. Spent 5 years learning. Blood and guts.
must not be a very good one.
You can say that again Mate!
I trade. It is about probabilities. Money is just score.
But he is a good trader here. He sensed a change in direction and he had conviction to add more to a losing position.
This episode had the most gripping individual character storyline I've ever seen on TV, the man who played Rishi deserves a million emmys.
@@Kigoz4Life good correction, thanks
A gambling addict? Lol how original!
“ Rule Britania “ is the most underrated part of the scene.
it was cheesy
@@User-mncbjlfjrebxklYeah but it was realistic.
I don’t get it?
it's ironic because this scene is based off Liz Truss' disastrous budget, which caused UK mortgage holders to lose thousands per year in extra interest
@@User-mncbjlfjrebxkl most of the dialogue was. It's pretty riveting at times but if I hear another person call it brilliant I'll lose my mind. It's completely over the top, the characters have the same exact arc every season and episode for that matter, and is completely one note.
This just reinforces what Rishi said during the meetings they took in S2. He doesn't know your trader, but they definitely know him.
Let’s be honest… it’s not your first time watching this scene! 🎬 Absolute perfection from an acting, pacing, cinematography standpoint 👏🏻
I'm amazed that Americans get to enjoy a British show before Brits. That's the world of distribution rights for youu
along with the absolute irony of the WGA and SAG unions going on strike at the same time this season was being shot (the actors were covered with Equity (UK) contracts so it was fine). A ton of this show was filmed in Cardiff and Bristol in the UK!
500+ bps in 3 minutes on a full yard of long. Unreal balls of steel.
best television episode of the year. Rishi made me his number one fan.
Which video do you mean
@@junaidhassan8607 he deserves an Emmy
out of the 3 seasons, the best scene so far. What a carachter is Rishi...
Harper came in with the clutch. She’s the goat.
Nah he wouldn't have cut his position. Would have made profit on 600m instead of a full yard.
@@shaohoong that's the point tho. Harper gave him confidence to buy at the bottom, which would have been the majority of the profit. the 18 million profit would be closer to 5 million. Also, if I was Harper I would be fucking MAD
@@farahabdulahi474Harper screwed Rishi before. No tears. It’s all in the game.
not really. this was all Rishi
She’s written to be so perfect, even her challenges are a step to success. Boring.
Best scene in the whole show
it was epic
Perhaps nothing else will beat this scene this season
@@aaronblack8792my favorite scene was in season 1 when Harper closed the 70 million shares trade with the Client Jesse😁
@@chrismary6200 That's s2
@@montyi8but the dip, short the Vicks, f* bitcoin
@2:56 Eric's hand movements to call off the security was so epic!
Yea Eric (Ken Leung) is good at gesturing and body language. A good speaker too, (besides that last dinner with Yas) but when he speaks I think his voice commands attention.
Fuck, now I can't stop watching that. Mesmerizing.
this uncut gems ass music, absolutely inspired by the safdie bros, it’s getting me to watch it now
Yeah it sounds like oneatrix point never but it isn't
Homeless man's safdies
Lets go Rishi! Best fucking character. One of the best scenes in the show! Funny how Rishi and the Arabic guy had beef earlier then they executed a sweet deal together! Thanks for uploading!
That’s professionalism. You don’t have to like each other, but you have to work.
@@Azmuhhhhh Because big money was involved everyone wanted a piece of that action.
Well one they have to or they both will get fired and banned from the industry for botching a trade of that size. Money is what makes these guys move
uh... best fucking character got his wife killed lol
Rishi fan since s1, glad they upped his character!
Update?
This episode shut me up. I never thought that Rishi was going to have a character development at the beginning of the episode. They perfectly portrayed what toxic masculinity is and how it affects.
One of the best episodes of the show.
“Toxic Masculinity” made 18 sticks in a matter of minutes.
@@drak3y It still is, even the show is screaming at you what it is.
@@Andy-nv6ys Agreed! You can have the moral superiority. I’ll take the 18 sticks and the associated quarterly commissions and tear-end sweetener. Great trade! I love it when everyone gets what they want!! 😄
@@drak3y Oh, I misunderstood your comment. I'm sorry.
I agree
@@Andy-nv6ys No apologies needed, hombre!! I hope you lay waste to every obstacle in your way!!!!
That last scene? That scene with one eye and two words! rule britannia!
Rishi: What are our clients doing, please?
So, I can front run them.
18 million in 45 seconds. Incredible balls of steel Rishi
In hindsight only Rishi had the balls to do it because spoilers, he's addicted to gambling. High risk, high reward.
18 million profit, but he was in the red at the start as well so its more like 40 million
I just realized Mo Salah's buyer (Al Miraj) is his own family.
@BatmanHQYT | LMAAAAAAO
Mine, Mine, Mine 😂❤
I'M A MAN, AND I AM RELENTLESS
Worst line in television history
Officially my Roman Empire
Rishi is an absolute madman. Love him.
2:25 the foreshadowing!!!
The desperation of Rishi’s sale and their quick willingness to take the trade, it really was brilliant foreshadowing, and the elevator scene afterwards on the man’s downfall
@@JackGreggsI meant The bank is officially sold to Egyptian investment firm Al-Mi’raj.
Good catch
Harper could just as easily said she was a seller of pounds just to screw with him, and Rishi would have been DESTROYED. Always trust your own sources people.
Won't make sense, Rishi was Harper's broker here. If she'd tell him to sell she'd lose money too.
she destroyed him later in the show
And Rishi lived happily ever after
Industry but its just rishi
1 billion position to make to 18mil, that’s less thn 2% return.. he was down 39 million on a 700 mill position, which is 5.5% 😂 the the RR here is absolutely insanity. Gotta love rishi
a gambler through and through...
All of that while trading Forex which is arguably the most risky asset to trade
Which is one of the cool things about the scene. It turns out that Rishi is a terrible trader.
Didn’t realise everyone was a pro trader in the comments
You missed the “across our books” part… so the fund or whatever they’re managing each account averaged $18mil in profit. Who knows how many accounts they have wrapped into one fund. And then you watch the charts…. That’s wayyyyyy more than 2%. Literally the entering trade and exiting trade are 700 BP’s but he was already in the red so that are out his return but at least made the investment solvent.
Al-Mi'raj... No fucking way lol
There's no difference between a lucky and good trader. Only thing is know when to exit
This episode was an incredible Uncut Gems homage.
Which episode was this?
@@yington Season 3 Episode 4, it says so in the video title.
Hey, how to not get copyright issues? I am trying to start a channel. Tips would helpful
@1:39 Rishi - Mine, mine, mine! 😂😂
Best scene of 3 season
He just got rewarded for breaking all the unbreakable rules in trading, oversizing, not cutting losses, doubling down on a losing trade. risk management never should've allowed this to happen. and he did get lucky, same way he got lucky at black jack before proceeding to give it all back later on. he thinks he's a genius and master of the universe on a fluke. The hopeful side of me is he realizes what he did and comes around to realize he has a kid and a wife that he needs to look after. But judging by how he decided to take another tip (another unbreakable rule btw) from his loan shark pimp, Rishi is fucked.
Bro yapping at a TV show 😂
@@sunnydays405 what's funny? you think the dozens of people who work on this show *don't* want the audience to 'yap'? It's a compliment to their work when someone talks about it. If you don't care then piss off and watch something else
@@sunnydays405I enjoyed reading what he wrote.
What do you have to contribute?
Like the show makes Rishi feel bad about his toxic masculinity, you're just a misandrist.
You called it.
@@Bannedconfidential YUP
18 million from 1 billion trade
Harper: uhhhh I'm just covering my short to hedge against the announcement but ok
Rishi immediatly knew if Harper was buying.. something was up
as someone who works this literal job, lol Harper is calling to buy (you can hear Yasmin tell him) normally hedge funds or fast money don’t give direction, here they did
Show actually portrayed this accurately also. theyre trading GBPUSD. as we know if the FED gives data/ implications that we will hike rates DXY (dollar index) will rally higher, and XXX USD quoted pairs will decrease. now if BOE raises rates/gives data that theyre gonna raise rates this cause BXY to increase (pound index) BUT since GBP is the base currency here, GBPUSD will rally, hence what happened in the show, wild
This episode was actually based on real-life events of September-October 2022, when the new Liz Truss government announced the Mini Budget, crashing GBP. After only 1 month, they had a new cabinet, with a new Chancellor, who reversed the Mini-Budget entirely, as well as announcing Rate Hike. This scene shows the exact moment of announcement to reverse, which led to GBPUSD rally from the lows of 1.07.
RULE BRITANNIA
This is how I win!!!!!!
That's how you die in real life
brown indian guy saying rule britannia was not something i expected to see in life 😭
He’s English of Indian heritage
The UK is a country. British is a nationality, not a race. Brown people can be British. Keep up ol' chap or you'll be sent back to school at this rate!
The true meaning of full porting
Just took a loss trading nifty puts and im here watching this video.
You're only as good as your last trade
Do we know how Harper knew?
Edit- used my brain and it must be Henry Mucks insider cronies Robert was introduced to end of episode 5. Harper will likely be revealed to be part of the crew as a fellow “rebel”
After episode 3 in this season, I was ready to abandon this show. But Rishi managed to pull be back in with full force :D What an epic episode.
Episode 3 was funny asf wdym
Can someone explain the scene?
There's a reason i saw this thank you
Rule Britania indeed.
Rishi sounds like the seagulls from Finding Nemo
I just realized they mentioned Al miraj here
what's Al Miraj?
@ the name of the bank after it’s bought from the Arabs
What does i'm not axed that way mean?
I have no understanding of what’s going on but it’s still exciting to watch & that’s what make it great
There aren't any good traders, we only remember the ones that got lucky.
The premise of this doesn’t really make sense. Banks dont have prop books anymore, in reality Rishi wouldn’t be taking overnight risk, he’s a sales trader so they just earn the spread and hedge out the risk. He wouldn’t ever be in a situation where he’d have a long term directional position like that. In reality his position would have been stopped out and he would have been shown the door. The show kind of conflates the role of a sales trader with that of a buyside portfolio manager.
Prop trading is only banned for deposit taking banks not investment banks. Pierpont (fictionalised) is a pure investment bank.
Also, 10min of a position is not overnight.
@@imammo867no that’s not quite accurate. Basically none of the large investment banks have prop desks anymore, however they do take some amount of directional speculation through over/under hedging client flow. Regardless, Rishi’s role is clearly a sales trader, he wouldn’t be taking large directional bets like this and he wouldn’t be sitting next to sales people. Even before Volcker when prop trading was still widespread, the prop traders certainly wouldn’t be sitting with sales people trading off of client flow.
@@georgikirov9197 did you see the show? He’d built up a nearly $1bn position (they say ‘almost a yard’, yard = billion) over many days/weeks. That’s the whole premise, that he’d been digging a deeper and deeper hole. In reality, the risk team wouldn’t be politely calling to find out what’s going on, the position would be stopped out and he’d be fired.
Few things on this show make a lot of sense.
Tell me, what’s the difference?
Al Miraj??!!! Wow!
Soundtrack in this scene??
soundtrack available on spotify
@@buho.fausto1840name of track when the almiraj trade goes through?
@@nupur13p it's called "Rue Britannia" by Nathan Micay.
Wallstreetbets are boyscouts compared yo Rishi's balls deep positions lol
What is the brand of the jacket that Rishi is wearing here?
Probably Tom Ford or something in that fashion
Movie name?
tv show "industry"
Suspect the arabic guy's buyer was adler.
Why and how?
I thought the same thing. But I’m not so sure it’s nefarious.
Was more likely a Middle Eastern buyer
Jesse Bloom?
@@notmwangi He's in jail
How much commission would Rishi take home for this trade? And how much sales credit for the guy on the phone with al-miraj ?
Double sales credits - What's the commission from that one yard of sterling sales?
No one bids so high up for sterling at that notional amount. Rishi is such a lousy market maker
Is this industry season 3?
yes
@buho.fausto1840 ta
Dude Ali just sold a billion pounds damn dude
Bro really invested 1 billion just to make 18 million??? Has to be the dumbest investment ever
Gamblers paradox
It was some 100 million loss initially
That's actually a great return when you're generating profit on spread at an institutional investing company.
He made 18 million within a span of minutes, that was a great investment.
It’s not easy to make money on the cable. It’s the second most traded pair and thus the margins are typically thin
WHEN IS THIS BACK ON IPLAYER BBC?????
October 😢.
@@joeharper9126 😎✌
@@joeharper9126 hyped 😎
Who’s the last lady at 1:21 😍
It’s Yasmin. So hot w Henri season three yo!
How much is the sales credits? Why is the salesperson still listening to him if the position go bust their desk is done and they not gonna receive any comp.
did he get beat up? I also saw a video where this guy's wife confessed to cheating on him. And he has a gambling additiction. The man's going through it. Can someone explain more about his character?
Yeah he got beat up that morning at a strip joint
@@adnanrahman5883 what's the story and what's up with his wife?
@@anirudhv0062Watch the show!!
@@anirudhv0062you gotta watch this show. It’s so good. Better to watch it than have it spoiled
@@anirudhv0062 Just watch the damn show
What does 180 Tudor mean?
Tudor = GBP
@@Neojhun lol no .. Tudor is the name of a client, Salesperson found a seller of GBP for Rishi, she asked Rishi for his bid (a buyer) in 180m GBP for Tudor (a seller)
what does double sales credit mean here?
double the commission
Name of show?
Industry
200 bps hike. 😂
It’s only a 200 basis points hike !!!??? LOL !!! It works for a tv show eh !!!!
Why he banged up tho ?
Im sorry. But is this the new season!!!! Where TF DO U WATCH IT?!?!
eBaums
rip
Can someone explain this scene to me like I’m in the 9th grade?
Hahaha what q star 😂
Why does the guy look like someone beat the CRAP outta him was it a fellow employee that had a grudge?
no, he was at a club the night before and was kissing on someones gf, the girls bf found them and beat him up
this is hype. cam someone explain tho
So basically, the UK announced an emergency budget which involved among other things raising capital (through gilts or UK bonds) and a top rate tax cut (which benefits high income earners). Apparently (this is something I picked up from context), the government might have been on a fiscal deficit (they are spending more than what they earn-through taxes), they need more capital and they do that by issuing debt. When annouced, sterling weaken (which was the contraty to what Rishi was hoping since he was long sterling) and bond market collapses with yields exploding. In this scene, the government reverse all of their plans; giving confidence to the market that the government is not as bad as they thought they were, thus investors believe in the country again and rush back to buying sterling making it rally and Rishi's position above breakeven (actually he came out with a profit lol).
@@LavoeTradesand this is what actually happened with the disastrous Liz Truss budget
be careful of what you see on television because most of it is not real. in the real world, this type of stuff is no longer possible as financial regulators heavily crack down on poor risk management ever since the 2008 financial crisis happened. traders first of all rarely take directional bets at that large of a scale; at a certain risk amount, their accounts would have been frozen and would require higher ups to sign off before taking on more risks. secondly, if he exploited system errors to take on larger risks than he was qualified to do, that could result in a prison sentence; it's no joke, he would be sitting in federal prison for a few years.
so while aspects of the scene are accurate, some are entirely not. you simply cannot do that type of shit at a bank nowadays.
Right umm any chance someone could provide me the Coles notes on what happened here?
rishi, currency trader, makes profits on currency spreads, i.e buying a currency for low and selling it high. The spread is profit.
In this scene, traders are expecting a chancellor announcement on British pounds interest rate. It is essentially a “coin flip” to predict Bank of England interest announcements (though some insider trading can occur). But in short:
- Higher interest rates = better return on GBD = more demand for GBD and increasing (appreciating) currency
- Lower infested rates = decreasing return on GBD = less demand for currency and lower prices (depreciation)
Rishi received a tip from Harper, former colleague, that people are buying bounds (i.e expecting interest hikes). He then positions him self as a currency buyer 5 minutes before interest rates announcements.
BoE announces an unprecedented interest rate hike (assuming to combat COVID 19 inflationary pressures) and GBD appreciates (increase in value) immediately. Rishi then exits his long position (i.e buy high sell low) and sells his GBD, taking advantage of spread.
The firm makes a nasty profit from predicting that BoE was going to increase interest rates. Hope this helps.
rishi, currency trader, makes profits on currency spreads, i.e buying a currency for low and selling it high. The spread is profit.
In this scene, traders are expecting a chancellor announcement on British pounds interest rate. It is essentially a “coin flip” to predict Bank of England interest announcements (though some insider trading can occur). But in short:
- Higher interest rates = better return on GBD = more demand for GBD and increasing (appreciating) currency
- Lower infested rates = decreasing return on GBD = less demand for currency and lower prices (depreciation)
Rishi received a tip from Harper, former colleague, that people are buying bounds (i.e expecting interest hikes). He then positions him self as a currency buyer 5 minutes before interest rates announcements.
BoE announces an unprecedented interest rate hike (assuming to combat COVID 19 inflationary pressures) and GBD appreciates (increase in value) immediately. Rishi then exits his long position (i.e buy high sell low) and sells his GBD, taking advantage of spread.
The firm makes a nasty profit from predicting that BoE was going to increase interest rates. Hope this helps.
His job is to make educated bets with the firm's money. He made a very big bet with more money than his firm would allow. He was in a tough spot but things turned out all right when his bet turned out to be correct.
@@Blashmack thank you. What was the bet?
@@showdown2006that the British pound would gain value vs the US dollar
You're not even a good trader, you're just lucky!
What's the difference?
I don't want to be right i just want to make money
Keep Clicking Traders
I can't relate how Eric isn't following
What did Rishi mean when he said he is not “axed that way”? Did he help Harper or leave her out of making money?
Harper wanted to buy from Rishi and basically Rishi said f- no if she is buying something’s up and he was right.
@@rogelioarmentasolorzano3848 gotcha, thanks.
@@rogelioarmentasolorzano3848 If he was long and someone wanted to buy from him why would he say he is not "axed that way"?
@@polarbear2335 cause he bought more and then sell it to make profit.
@@rogelioarmentasolorzano3848 He was long in a position he wanted to get out off until Harper called him. Therefore would he not have been axed in favour of selling. After the call he became a strong buyer. I get when he thought that Harper knew that Sterling would go up that he chose to buy more. It is the axed statement I don't quite get.
betting with a billion dollars and only 18 million in profit, wtf is this weak ass return?
Don't worry you'll understand in some time, if not let me know I'll explain
@@notpiyushpatil so they are investing with their clients' money even then less than 2% return in commission seems like chum change.
@@johnham4485 So Rishi trades on behalf of Pierpoint so all the money he makes is theirs, In this scene he was in 39 million loss and by the end of 2 minute trade he was positive 18 million. So he netted 57 millions in the two minute trade and offloaded the position. So he made around 5.7% gain on a billion within 2 minutes which is a lot when considering the trade size.
If you have ever traded FX, you would know that the FX market's moves are only in the order of 4 decimal places. Movements are not in whole numbers and are very small. That's why currencies are used as medium of exchange. You do not want the Pound to behave like Bitcoin which could lose up to 10% of its value in a dump in 1 minute. Anyway, these small moves mean that the positions have to be leveraged. So if the term were to use a leverage of 1:10, it means the firm only needs to commit 10% of the yard into that position, which is 100 million pounds. The rest of the capital is leveraged. Any profits or losses are calculated as if you were putting up the entire money. So a return of 18 million pounds on a 100 million investment is 18%: it is phenomenal. Most hedge funds, companies, etc, that really outperform do not even make more than 30% annualized in the Western markets. Only emerging markets offer much higher rates of return.
Worst episode of the series so far, filled with banal cliches and weak writing.
Rishi fell off. This season is not it so far
Fu