How George Soros Made $60 million in just over 18 hours

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Reports this morning have George Soros making a cool $60 million on his Australian dollar short in less than two days.

I’ve tried to piece together the various snippets I’ve heard.

He started the short building from just above 1.0300 on Monday and added around 1.0280.

AUD soros

A short time later the rumours started.

At 0430GMT on Tuesday the RBA cut its benchmark interest rate, the first move since 2012. AUD/USD slipped from around 1.0240 to below 1.0200, and thats where Soros started scaling his purchases, from just below 1.02 to 1.0165 (and thereabouts):

AUD soros2

Best thing is, it appears he made 3 similar trades. With a trader in Hong Kong taking one of the orders, another in Singapore, and one more. The trades netted around $18 million on each, for a total reward of about $60 million.

OK, just a word of caution. Soros and his organisation are highly secretive. This is the scenario I’ve put together from what I’ve heard around the place and I don’t imagine I’ve got all the details correct. But it does give an idea of how he operated.

Oh, and $60 million is a nice return, but its pocket change for Soros, he’s has made over $1 billion being short yen over the past months!

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

20 Comments

  1. Hi Eamonn I read somewhere yesterday he also lost quite a bit on gold and his total investment fund was down 10% since the beginning of the year even with the profits from the yen trade. Do you think that’s true?

  2. I hadnt heard that Colin?

  3. Thanks Albert

  4. Good for him, good judgement. the .25% cut seemed blindingly obvious to me and I made money too, sadly not as much as Soros.

  5. Good lesson here…
    You don’t need a 600 pip move to make a nice profit.
    In fact, a consistent 25 pips a week, every week and you’ll be living very, very well in just a few short years.
    The problem is, most traders don’t have the mindset/discipline to shoot for just 25 pips a week (or some other realistic figure) and they try to turn a 10k account into a 7 figure account in their first year.

  6. lets do maths real quick..

    10 lots, 150 pips = $15,000

    100 lots, 150 pips = $150,000

    1000 lots, 150 pips = $1.5mil

    10000 lots, 150 pips = $15 mil

    So soros had about 40,000 lots on, a cool 4 bil in Aussie shorts.

    And I laugh when the CTFC reports the net euro positions as if they are only 20 billion or something… they must not account for everything. We all know 20 billion is nothing in Forex and that a $50 million order won’t hardly move the market, not even a pip.

  7. Doesn’t the CFTC only report on positions at the US based commodity exchanges? Globex and what not

  8. Colin, that article is two years old…

  9. That’s what I thought as well Ryan. Which is why to me, it isn’t an accurate measurement of anything. Just a waste of time.

  10. I knew they didn’t report all, was just confused as to what positions they actually do report. There is no way they could report on spot FX positions

    Thanks for clearing that up

  11. how do you guys know this? is this real news? or are you just making this up>?

  12. Eamonn will have had his sources Hogwarts

  13. No offense DKC, each unto their own and all that, but seriously, are you ‘avin a laarf’ or what lol

  14. steel nerves he has.
    Just one thing, assuming he does not trade through cme.
    For an order that size, who would be taking it up?
    interbanks?

  15. Good god at these comments. CFTC reports commitment of traders is reflective of futures. Virtually all hedge funds operate in OTC fwds, not futures, for currency positioning.

  16. Soro es un gran especulador

  17. Soros should not longer as speculator in FX, he should be sharing some his experiencne to the next generation.

  18. simplex algorithm

  19. hello mates.. i think george soros dont trade with retail brokers like fxcm ,hotforex..etc

    they have their private brokers or sometimes they do institutional forex.. and cftc,fsa and nfa are only for retail brokers.

    so we cant go with CFTC results !

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