With all due respect, how the fuck did this guy made 1 billion

Arbitrage. Lots of firms made profits that day at the BOE's expense. His was just the one best positioned to take advantage of it.

>>1668620
Because he shorted about $10bn worth of pounds. That's a 10% ROI over the entire period he held those positions.

It's not like he made those one billion dollars out of thin air. I don't get how /biz/ doesn't understand this concept, if you have a shitload of money, it's relatively easy to make a smaller shitload of money.

If you don't have a shitload of money, this isn't relevant to you at all!

Soros lost a shit ton of money on dumb shorts and gambles multiple occasions as well.

He got lucky, or rather he made a very bold decision based on a calculated risk and massively leveraged it and actually won. He isn't Warren Buffet with investing in water companies and shit. Soros is a high rolling gambler that knows how to play the house.

>>1668620
The Bank of England, under the control of the government, was trying to keep the pound above market value long enough to joint the Euro at the desired (high) rate.

The market won, and Britain was forced to give up its attempt to join the Euro. But it wasn't until 2008 (when most people realised it was a lucky escape) that joining the Euro ceased to be a long term objective of the British government.

>>1668685
>>1668813


This. When you get to a certain amount of money where your trades can move the market you're no longer 'betting' or 'gambling' on which way it's going to go...

more than you are fighting the other side and whoever doubles down the hardest wins.

He had more money than the bank of England was willing to spend to fight his trades.

So he kept betting it would go down, they kept taking the other side thinking he'd run out of money before they do..

They ran out first, it hit their 'stoploss'... which was actually their 'gaurentee to prop up the pound. once they stopped propping it, other traders jumped on and it fell like a rock;

Soros who had basically 'started' the fight and had open shorts from very high up, then sold and reaped the profit.

>>1668620
he was a nazi sympathizing jew

>>1668620

Why not read up on it?

to make it really short

Europe at that time, and the UK, used it's own currencies, but were bound by the ERM. European Exchange Rate Mechanism. To keep the pound at a level that it needed to be so Britain could remain in the ERM, Britain started buying it's own currency.

The market bet against this and sold, sold, sold, as the Bank of Britain bankrupt itself buying all the sell orders trying to keep it's currencies value afloat. They tried raising interest rates at one point in the day, which was just seen as a sign of weakness, and launched an avalanche of sales.

>>1668620

This isn't a classroom and it's not our role to educate you

>>1669203
Wow....

this guy..

>>1668918
That's stupid. Individuals pale in comparison with government financial entities. The Bank of England has 400 million in foreign reserves. It wasn't just Soros, it was many other institutions shorting it.

>>1668648
how did he made those 10bn

>>1670396
>The Bank of England has 400 million in foreign reserves
And Soros bet $10b against them.

>have 1t
>get 1% return
>make 10b
wew