The Son of Finance of the Great Age

  Chapter 182 Re-entry

  With the large-scale liquidation of long and short positions in the market, the subsequent trading volume of the copper futures market also fell to an average of about 50,000 lots per day. This number has barely returned to normal, but market participants understand that this is the settlement time left by the long and short sides. With the funds of both parties in place, the copper futures market is about to make waves again.

   Sure enough, starting from June 29, the bulls started another pull up. It’s just this time’s rise, because the short sellers have made enough preparations, and investment banks have lowered their growth expectations for the world’s major economic markets, so that this wave did not form a sufficient upward trend. As a result, in mid-October , the price of copper is still hovering around $2,500.

  However, this stalemate was finally broken in the last quarter of 1994. The reason was a piece of news from South America.

  According to the report of the Financial Times, the employees of Chile's state-owned copper company, the world's largest copper producer, are negotiating with the employer on salary and other issues because they are dissatisfied with their treatment. The representative of the labor side claimed in an interview with the media that due to the general rise in the world copper price, the profit of the Chilean state-owned copper industry in the first three quarters has risen sharply, and the corresponding labor remuneration has not changed accordingly. It is raising wages for the majority of workers. Finally, he threatened that if the management did not agree to their demands, the labor union would not rule out the possibility of a general strike.

   When the news came out, the international copper futures price reacted immediately and rose for three consecutive days, from $2,479 per ton to $2,577, an increase of 4%.

Leaving aside whether this news is true or not, judging from the current fundamentals, although the Federal Reserve continues to raise interest rates, the international economic growth is still rapid. The economic growth rates of major Western economies headed by the United States have slowed in the past three quarters. If it exceeds 3%, the corresponding demand for copper will also be strong, and with the support of copper prices, the prices of other non-ferrous metals such as nickel and aluminum will also rise.

  Thus, although August is the holiday season in the traditional sense of European continental countries, the market trading volume has not declined too much, and the price of copper futures has been hovering around $2,500. The off-season of spot copper has little impact on copper futures prices.

  Zhong Shi knows that these are not the main reasons. After all, the fundamentals are only one-sidedly good for a certain financial product. If there is no capital increase, the corresponding price fluctuations will not reach the expected level. The reason why copper futures prices have not retreated throughout the summer and autumn is because speculative funds are still in the market.

  The reason why I know this is all because Zhongshi has invested in US hedge funds before. Most of these hedge funds mentioned in their performance reports to investors in the third quarter that they have made huge profits in the non-ferrous metal market. Anyone with a little brain will understand the varieties and directions of these hedge funds after a little thought.

   "Zhong Sheng, I recently made a profit of more than 10 million dollars." When Zhong Shi dialed Andrew's phone, he heard Andrew say excitedly on the phone.

  Since leaving the market at the end of June, Zhong Shi has left part of the funds and positions in the account to Andrew in London. The total funds are not too much, only 60 million US dollars. Zhong Shi also specially instructed Andrew to take the long as the general direction. Although Andrew obeyed Zhong Shi's instructions and used a small amount for each operation, even so, he still broke his positions several times. After fully seeing the turbulence of the copper futures market, Andrew became more cautious and conservative.

Therefore, when Zhong Shi heard that Andrew had made tens of millions of dollars, his first reaction was to not believe it, and he hurriedly asked, "Are you kidding me?" , To earn tens of millions of dollars, the basic position should be around 4000 lots.

  For a position of 4,000 lots, the margin will account for 40 million US dollars, which has reached nearly 70% of Andrew's principal. Such a high proportion of capital occupation is very risky.

"Of course it's true. Copper has soared recently. I continued to take long positions. Adding the previous bottom position, the total position reached 4,000 lots before I knew it." Andrew also heard the surprise in Zhong Shi's words , quickly explained.

Hearing Andrew's words, Zhong Shi didn't say a word for a long time. In his opinion, Andrew's aggressive operation is certainly good, but these are all based on the rise of copper futures prices. If it falls, then all of Andrew's capital may be lost.

   "Zhong Sheng, I heard a piece of news recently, and I don't know if it's true or not." Andrew waited for a long time, but didn't hear Zhong Shi speak, so he changed the subject intentionally.

  Zhong Shi came back to his senses and felt that he was thinking too much. After all, Andrew had already made money, and it seemed redundant to think about other things at this time, so he followed Andrew's topic and asked, "Oh? What did you hear?"

   "It is said that some hedge funds were involved in the incident in Chile, but they don't know whether the news is true or not." Andrew said cautiously on the phone. He kept his voice low, apparently afraid that others would hear him.

   "Hedge funds operate in it?" Zhong Shi repeated these few words, obviously not convinced. However, after being stunned for a long time, he suddenly remembered that this kind of manipulation of the guild might really be the work of hedge funds, because he had heard a lot about this kind of thing in later generations.

  Although this incident happened in Chile, it was precisely because it was in Chile that hedge funds had room to operate. Because if it is an association in the United States, based on legal and other factors, hedge funds are not easy to control. In Chile, however, hedge funds need only use a few proxies to brush off their liability. For these Chileans, it is a simple matter for these Chileans to buy the leaders of several guilds and then release such news. Moreover, the reasons they said are very open and aboveboard, even if someone checks them, they can't find anything.

   "What's the current market situation?" Zhong Shi hurriedly asked again.

"Some time ago, the number of trading lots remained below 80,000 lots on average per day, but the volume suddenly increased sharply in the first two days, reaching 150,000 lots at one point. In recent days, the trading volume has continued to remain above 100,000 lots." Andrew passed After this period of edification, I have already mastered these key data.

Hearing Andrew's words, Zhong Shi suddenly had a bold idea in his heart. Although these data are not obvious, they are likely to be another opportunity to rise, especially the news that Andrew inquired, which further confirmed Zhong Shi's guess.

"Zhong Sheng, are you..." Andrew asked with some doubts. Although he didn't say what he said later, Zhong Shi already understood what he meant, and then he said with a smile: "Don't think too much, I haven't It means to enter again."

  Hearing what Zhong Shi said, Andrew felt a little sorry, and after chatting for a while, he was about to hang up the phone. Zhong Shi hurriedly ordered: "Taking advantage of the current floating profit, hurry up and leave the market. Maybe copper will plummet again in the near future."

  Andrew smiled and hung up the phone without answering.

  Zhong Shi knew that without his last sentence, Andrew would definitely continue to increase his position, but now he wants to close part of his position, because he has expressed his dissatisfaction, and Andrew will definitely have scruples.

  After thinking about it, Zhong Shi called Brian: "Bryan, I'm Zhong Shi!"

  There was a burst of noise on the phone, and then a familiar voice sounded: "Where are you? Uh...Mr. Zhong, hello! Hello!" Brian complimented hurriedly, his voice almost flattering. If Zhong Shi appeared in front of him at this moment, he would probably be in a servile and flattering posture.

  Thanks to Zhongshi's operation, Brian's commission for the company in the first half of the year reached the highest level in history, amounting to millions of dollars. Just now he was bragging to a new intern about his "brilliant" record in the copper futures market, and he directly confused this beautiful intern, looking at Brian with eyes full of fascination, Brian thought that today There was a show in the evening, and I was about to book restaurants and hotels for a romantic spring evening, but Zhong Shi called at this time.

Brian was very upset, but when he heard Zhong Shi's voice, he immediately put the beautiful intern behind him and asked cautiously: "Mr. Zhong, is that you? It's been a long time, how are you?" "

Zhong Shi reprimanded a little speechlessly: "I came to you to say hello? Stop your nonsense, how is the recent copper market?" Although he has already learned the relevant news from Andrew, Brian is more professional after all. people, and brokers will also exchange news, this is what he wants to know most.

Brian quickly gave a brief account of the recent transaction situation, and added a sentence at the end: "Mr. Zhong, do you need leverage? For a big customer like you, the company has decided after research that it can provide you with no more than 50% leverage." leverage!"

   Regarding the news that Brian never forgets to sell leverage, Zhong Shi was even more speechless. For brokerage companies, selling leverage can charge corresponding interest. If you are more greedy, you can also ask for a share of the profit, but they don’t care about the risk. In case of a loss, the first one to ask them to pay back the funds will not be the exchange, but the brokerage company , because they want to get the leverage they let out safely back first.

  If the amount of funds is insufficient, Zhong Shi will naturally negotiate with the brokerage company and ask them to provide leverage, but there is no need for this now, and it is estimated that he will never have the need to increase leverage again in the copper futures market.

   "Bryan, wait for my call tomorrow!" Seeing that he couldn't get any useful information from Brian, Zhong Shi hung up the phone.

Although there was already a beeping sound on the phone, Brian still said respectfully: "Yes, sir!" After hanging up the phone, he reached out to wipe the sweat from his forehead, and then he noticed that there was a beautiful intern beside him pregnancy.

   "Whose phone is it?" Seeing Brian's reaction, the intern named Daisy couldn't help asking curiously.

   "It's the client I told you just now, a major client who earned more than 200 million U.S. dollars in the copper futures market in the first half of the year!" Brian blurted out without thinking.

   "Did you just say that it wasn't you?" Daisy frowned, then turned and left, leaving only an infinitely beautiful back view of Brian.

  Looking at Daisy's leaving figure, Brian was extremely annoyed, wishing he could slap himself a big slap in the face, he knew that the night's spring night was gone.

   Thank you book friend BMW 318 for your monthly ticket support! Thank you for making me think about it again! At the same time, I also thank many new book lovers for coming to pay attention to this book recently, thank you for your support~

  (end of this chapter)