The Son of Finance of the Great Age

  Chapter 71 Christmas Battle (3)

  Singapore Exchange.

   The initial liquidation of the short position was very small, and many traders did not notice it. Most people were waiting for the moment when the short side collapsed, ignoring the continuous transaction amount of the long side.

  RB The stock market is still rising, and the bulls are naturally aggressive. Every day, hundreds of thousands of long orders are traded. It is easy for people to ignore those smaller numbers—the long orders that are constantly being traded. Under such circumstances, the short sellers gradually liquidated their huge positions. In addition, it is not long before the delivery date, and people's eyes are turning to the new main contract.

  By the time most people in the market reacted, the short sellers had successfully liquidated more than 80% of the contracts. When there were two or three trading days before the final delivery, the main short sellers evened out the last 40,000 short hands at a price of 36,000 (because it was close to delivery, so the number of the futures index tended to be normal to the Nikkei index). Single, successfully escaped from the December contract.

  However, this price is 2000 points higher than their average opening price. Some commentators pointed out that the loss of this 40,000 lots alone was as high as 300 million US dollars.

   In fact, the shorts lost more than a billion dollars on the December contract, just for those who operated secretly in Kobe. No one can calculate the losses of the funds that follow them.

   On the contrary, due to the addition of new blood, the futures contract in January was successfully suppressed a lot. In this month, Jim and his group did not lose much, only about three to four billion US dollars.

  The contract in January will be a brand new struggle.

  It will be a tougher month than December as market sentiment

In the previous strategy, his funds were divided into three parts, fully invested in three months, and the atmosphere was fully mobilized. Except for the complacent bulls, most participants in the market were also optimistic about the RB stock market. I am guessing whether the Nikkei will reach the historical mark of 40,000 before the New Year.

  Jim changed tactics.

   on the contract, trying to hit the Nikkei in an all-round way. The ideal is beautiful, but the reality is super skinny. He has suffered losses to varying degrees for three months. In this month, he was forced to pay a deposit of more than 1.5 billion US dollars.

   Now he has less than $2.5 billion in funds available for use, and this number has continued to decrease as the Nikkei index has repeatedly hit new highs.

  If this situation continues, before the Nikkei index hits 40,000 points, he will put all his reserve funds into it, and then wait helplessly for the exchange to forcibly liquidate positions, giving way to the next step of the crazy bull attack.

  The best result is to get out in time and keep hundreds of millions or tens of millions of dollars in capital, and the worst result is to liquidate and lose everything.

   After all, he is now following the instructions from above, investing most of his funds in the January contract, just waiting to deal a fatal blow to the RB stock market on Christmas Day on Monday.

  He dare not disobey the orders above!

   But he was unwilling to watch billions of dollars evaporate out of thin air and turn into nothing. In this case, he would naturally do something.

  The morale of the entire trading team was already low. Before coming to RB, everyone was full of ambition and full of confidence, imagining that the RB index would be beaten down step by step under their operations. But the cruel reality told them that the defeated country in World War II not only had an unimaginable strength on the battlefield, but also infinitely magnified this strength in the stock market.

   They have lost confidence and no longer feel that it is possible for them to complete the task. If it weren't for Jim and Matt's strong pressure, I'm afraid they would have quit.

   Watching tens of thousands of dollars go to waste every day, even the most determined person will have a nervous breakdown one day.

  These proud traders in the past are now like walking dead, giving orders mechanically in front of the computer every day.

After repeated discussions with Matt, they unanimously decided to invest 100 million U.S. dollars in the long market in February, hoping to take advantage of the RB stock market to hedge risks. Exhausted traders.

  The reason for not investing more is that the number of futures contracts that can be purchased with this number will not exceed the position limit, and at the same time it is easy to include in the amount of losses. There is also an explanation for the above. As for hedging risks, it was purely for the two of them to comfort themselves. Compared with their huge positions in January, this amount of money could not hedge much risk at all.

  The income of traders is directly linked to the wealth they create, and the top traders can only get 10% of their profits at most. As soon as Jim and Matt's proposal was put forward, it was accepted by all traders. They knew that the final surplus of this money would be their compensation, and the loss could be pushed to the January contract.

  Matt, who was originally sent by the European consortium to check and balance Jim, also became an accomplice. There is no way, in the face of money, go to **** with any responsibilities, secret missions, and promises.

  The broker was found by Jim. Matt doesn't understand Japanese, and he is not as familiar with RB as Jim. Matt didn't know, but Maxim knew well that Jim must not only have found a broker, he still had his own funds to manage, and they had reached an agreement in private.

   Their practice has a term in economics called moral hazard. Moral hazard has existed for a long time, not only happens to them, but also will continue to happen to financial practitioners.

After secretly doing tricks, everyone breathed a sigh of relief. They can easily face the fact of losing money this time. After all, it is not their funds that are losing money, and the benefactor behind the money doesn't seem to care much .

  The morale-boosting team re-invested in the January 1990 contract, reviving their spirits and re-betting against the RB market.

   Coincidentally, Jim entrusted a long order of 150 million US dollars in the market, which was quickly taken over by a fund from Hong Kong, forming a rival order. And this opponent is precisely Zhong Shi.

   Time went back to early December, Zhong Shi felt that the time was ripe to short the RB stock market, and he quietly came to Hong Kong again.

This time, when he passed the customs, he didn't get in the slightest bit of trouble. On the one hand, the original political turmoil had almost subsided; This made it easy for him to get out.

   Arrived at Zhongshi in Hong Kong, he didn't stay for a moment, and immediately held a four-person team meeting with Liao Chengde, Andrew, and Zhong Yi. As for Liao Xiaohua, he was excluded from this core team. He is still being grounded at home by Liao Chengde to reflect on himself.

  When he proposed to short the RB stock market at the meeting, everyone was shocked.

  Liao Chengde is mature and prudent, and he unconditionally supports every decision made by Zhong Shi. After all, he got everything now by following Zhong Shi, even his son's life was saved by Zhong Shi.

Over the past few years, Zhong Yi has matured very quickly. Although he is not yet able to stand alone, he has made some achievements in the research of international economy. Even his tutor at the University of Hong Kong thinks this student is excellent, and is considering writing a letter of recommendation to Zhong Yi Go to the United States to study for a doctorate. This was the first time he raised an opinion against Zhong Shi, but he knew the temperament of this cousin, and basically decided things would not be changed.

   Unexpectedly, it was Andrew who reacted most violently.

   For a long time, Andrew has played the role of a manager. Under the circumstances that everyone only followed Zhong Shi's lead, not many people cared about his opinion, and he didn't take it seriously.

  But this time he firmly opposed it, and gave some reasons that were difficult to refute.

"The RB market has been rising for three years in a row. At present, most people continue to be optimistic about the RB market. Zhong Sheng, do you know how much the total market value of RB is now? It is twice that of the United States! How can you shake the RB market? ?”

"I'm sure you've read the information I sent you! I'm sure you know that the two stocks of funds in Singapore have fought several times around the Nikkei futures index. As a result, you also know that the RB market continues to rise. You made a mistake, the short side lost billions of dollars, and this figure has exceeded your current net worth!"

When Zhong Shi told Andrew to pay attention to Singapore's Nikkei futures index, Andrew was keenly aware that Zhong Shi had discovered another investment hotspot. After carefully studying the futures index trend for three months, he was very sure that going long would be the A great opportunity to make money.

   "Although you are my client, you must give me a good reason, otherwise I will refuse to execute the order!"

   Regarding Andrew's insistence, Zhong Shi was quite helpless, more annoyed. He can't just tell him directly that the RB stock market will turn its head down at the end of this year, so that everyone will think he is crazy, but he can't tell him that this is the collusion of the US and Japanese governments, so the source of the news will be a problem.

   In Zhong Shi’s mind, he had already thought of a set of rhetoric that could perfectly explain this question, but Andrew’s attitude made him give up the idea of ​​explaining.

"Well, let's make a bet. I will buy a brokerage company in Hong Kong later. If you win, I will let you be the head of the brokerage company. If you lose, I will ask you to start from the bottom. Sit in the position of the top class within three years!"

   "New agency? Taipan? Deal!"

  Andrew hesitated a little. In fact, although his words were extreme, he didn't have much confidence in his heart. After all, Zhong Shi was not only his client, but also one of the largest clients of this brokerage firm. If this matter gets to the top, he will only suffer. Now that Zhongshi gave him a step down, he just followed the trend.

  The funds transferred from the US stock market were quickly invested in the Singapore market. Zhong Shi was heartbroken. It would be impossible to buy these "beautiful 50" stocks in 1987 at the original price.

  Fate is such a coincidence, just as Jim released the payment here, it happened to be picked up by the funds of Zhongshi who entered the market. (Thanks to the book friends for rewarding again! At the same time, I also hope that more book friends can support this book!)

  (end of this chapter)