S$360 million lost in currency trading
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why and how did such a thing happen?
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please continue in existing thread...
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It is like this... according to andrewpkyap....Originally posted by dragg:why and how did such a thing happen?
First, Semcorp is making lots of foreign currencies like US$ and Euros$
The company must hedge their foreign currency exposure by buy or sell forward their expected foreign currency positions.
You expect to collect US$100million in December and at today's rate, you get S$150million S$ for it.
What if US$ plunge and by December you get S$140million? How? How? How? How? How? Lose S$10million How? How? How? How?
So what you do is, you "sell" your US$100million to the bank for say, S$149.9million (remember you only get the US$100million in December) and the bank will guarantee you S$149.9million if you give them your US$100m in December.
so far so good?
Tired liaoz... so much more to explain how he ends up losing S$360million... -
the most likely scenario, is that he was buying US$ aggressively against the Euros$ when US$ plunged against the Euros$
You know, buy low sell high? Unfortunately, US$ against the Euros$ keep going down until it hit record lows.
How he end up losing so much? He borrowed money to do the trade (a nice, politically correct term is, "margin" not borrowings) and he was trading like US$1billion against the Euros$.
So his loss is "only" 2-3% of his position what, no big deal what... except that he "borrowed" the US$1billion... and instead of losing 2-3% he lost .....
This is another company brought to you by Temasek holdings... and you as a Singaporean is a shareholder of Sembawang Corp.
but only Dr Chee Soon Juan will demand accountability, and the rest of us..... -
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U.S. Dollar to Euro Exchange Rate
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i cant find the existing thread.Originally posted by AndrewPKYap:please continue in existing thread... 
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Originally posted by dragg:i cant find the existing thread. I tried as well and couldn't find it.....
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that's why I decided, in the end, to continue in this thread...
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what r other directors doing? especially the audit commitee...
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whoa extensive explanation
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some times hor, these idiots do not know how fast the market can move and how much they can lose and they will have a idea why they cannot win if they read my book....
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will our taxes increase again?
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Such a big company and no checks and balances?
How can? -
more GST increases to "help" the poor....Originally posted by stellazio:will our taxes increase again?
