$300 Million Profit in One Forex Trade — The Story of Krieger and the Kiwi

The morning of October 19th 1987 might have seemed just like any other Monday in the markets. It was a chilly day in New York, but little did the traders in the Stock Exchange know that things were about to heat up dramatically.

Unexpectedly, the global financial markets crashed throughout the day and the Dow Jones suffered a 22.6% loss, the worst single-day drop it has ever seen, on a day that would forever go down in the history books as ‘Black Monday’.

Without a single significant identifiable cause for the crash, it’s thought that the huge moves were as a result of panic in the markets. However, not everyone was panicking in the sea of red.

One trader in particular who achieved legendary status thanks to these dramatic events was Paul Tudor Jones. Along with his right-hand-man Peter Borish, he famously predicted a crash was imminent and netted a hefty profit of $100 million. This extremely successful trade threw Tudor-Jones into the limelight and made him part of trading folklore.