Chapter 183 Treat Your Own People Well
Li Yuan looked at the overall trend that was about to break through fifteen points above the water, and hesitated for a moment.
Because he still has $1.4 billion in chips to use as a hedge.
But seeing the immediate benefits, he really couldn't help it.
It was worth $1.4 billion at that time, and is now worth $1.7 billion.
If you sell it, you'll make $300 million.
He was only about three points away from breaking through his short position, and he still had money.
Previously, he sold $1.3 billion at around ten points. After repaying the contract, he made a net profit of $300 million. Together with the principal of $180 million, he had a total of $480 million available.
Only 160 million US dollars have been mobilized just now, which is enough to increase the bet twice more. It will take about 27 points to reach the liquidation line.
The reason why Li Yuan hesitated was when to sell.
Wait until 27 points to sell?
Or sell now?
This chip of his can be said to be a perfect hedge against the short position he holds. If the stock price falls after he sells it, he will make a profit.
If the stock price cannot be suppressed after selling, then you will lose money.
After selling, there is no middle ground. Either the risk of making money increases, or the risk of losing money increases.
It is unwise to be greedy for twenty-seven points, because he does not believe that it can be pulled that high today.
Today is different from yesterday. Yesterday we pulled the car up to more than 30 points from the water surface.
Today we pulled from twenty points underwater to fifteen points above water.
Theoretically, the amplitude has reached nearly forty points, which is higher than yesterday.
Moreover, the trading volume is also increasing, and it is not just the two parties that are trading against each other. Li Yuan feels that there are quite a few scattered chips being thrown out during the chaos.
Either someone is taking advantage of the situation, or someone is taking the opportunity to run away, but it's not done in such a big way and is done secretly.
"Begin to reduce long positions, small amounts and multiple times..."
Li Yuan finally made up his mind.
As he began to reduce his long positions, the stock price not only did not fall, but continued to rise.
Soon, the margin call line for his short position was reached.
"Continue to open a billion-dollar short contract."
He doesn't call for margin, that would be pointless.
Just open a new contract, the effect is the same as adding margin.
Adding margin means fixing the number of contracts in your hand. If you make a profit, the profit is fixed, and if you lose, the loss is also fixed.
Open a short contract for buffering. If you make money, you will make more, and if you lose money, you will lose more.
Once you go to a casino, the first thing you will consider is how much you can earn and how to maximize your opportunities to make money.
He had been paying attention to the number of chips in his hand. As the number of chips he held dropped to $500 million, the risk began to increase.
Short contracts are not counted as chips because they have all been sold.
The current situation is that Wall Street has taken in a large amount of chips. Even though a huge amount was released today, the transaction volume of related stocks has exceeded 200 million US dollars, which is completely different from the usual transaction volume of 20 to 30 million US dollars.
His long positions were being smashed, and his short positions were also being smashed, but the stock price was still stable and was about to break through twenty points.
Once it exceeds twenty-two points, he needs to open a short position again as a buffer.
He still has a lot of money...
Short positions can remain open unless the other party uses tens of billions of dollars to directly double the stock price.
The other party can definitely come up with the money, and on average each institution would be around 100 million US dollars.
But Li Yuan didn't believe they could make such a big decision.
As long as there is a little disagreement, it will be the biggest help to me, and my short position will make money sooner or later.
If the other party is willing to use 30 billion US dollars to double the stock price, I will lose more at that time.
Li Yuan had considered all these risks, and even considered the situation where he would lose all of his $1.5 billion in principal and still owe a large sum of money.
In the stock market, winning or losing is always uncertain until you clear your positions.
Therefore, the daily income situation, when put into the data at this time, has absolutely no reference value.
The stock price was about to break through twenty-one points, and Li Yuan decisively issued the order to open a short contract for the fourth time.
It was still a six-fold leverage, and ten billion US dollars in chips were thrown out.
So far, he has held short contracts worth 4.5 billion US dollars. The money is in the account, but cannot be used.
Once the price of buying back those chips exceeds US$4.5 billion, it means that he will have to pay money out of his pocket.
At twenty-seven points, if the stock price doubled again, he would lose $4.5 billion.
The cash in his hand is enough to continue to cover short contracts or add margin. After it doubles again, he will be completely out of options.
By that time, he would have lost $13.5 billion.
Um……
It’s almost time to start over. No matter how powerful he is, he can’t turn the tables.
I'll spend the rest of my life slowly paying off my debts.
Short positions are so exciting!
Opening short orders at will is extremely stimulating.
After Li Yuan once again threw out a billion dollar short contract, it was obvious that the capacity to take over began to weaken.
It may also be an illusion. Anyway, Li Yuan completely cleared out all the chips in his hand at this position.
Now he has no bargaining chips left, which means he has no way out.
With US$1.8 billion in hand, I am ready to put it all into short contracts later. I will just open it slowly and see who can hold out to the end.
All the previous operations were just preparations, and this is the biggest point of negotiation.
So far, he has made $900 million from long positions and lost $600 million from short positions.
This is the real beginning of all this.
No one has an absolute chance of winning, both sides are on the same level.
At this time, sixteen stocks began to show huge divergences.
Some of them frowned and kept rushing forward, so Li Yuan had to continue to add to the short positions to buffer.
For some, their momentum has slowed down, and they have started to stagnate, or even fall back occasionally.
After this trend emerged, Li Yuan felt relieved.
Even if only two or three stocks stopped their upward momentum, it would be a help to him.
"Pay close attention to your positions. The trends are inconsistent now. If a stock is close to liquidation, mobilize funds in time to open short orders to suppress it. There will be no more instructions. All instructions are the same: do not liquidate! At all costs!"
After Li Yuan said this, the atmosphere in the entire trading room became serious.
The traders knew very well what this represented, and also knew very well what it would mean once the $1.8 billion entered the market with leverage.
This means that losses will reach their maximum.
This means that once the stock price continues to rise, not only will all the funds turn into bubbles, but the company will also owe tens of billions of dollars in debt.
They all came from the Qingtian Mixed Small and Medium-sized Cap Fund and have managed tens of billions of funds.
But the risk of losing tens of billions of dollars still makes them tremble.
My boss has never played such a big game before.
At three o'clock in the morning, when some stocks broke through 27 points, Li Yuan placed a follow-up order.
However, this time only thirteen stocks rose to the margin call line, while the other three stabilized.
In fact, Li Yuan has been watching the trading volume, and the increase in trading volume of all stocks is similar.
The fact that the other three stocks did not rise means that there are other people dumping them.
This time, a short contract worth 290 million US dollars was filled.
At 3:30 in the morning, eleven stocks touched the margin call line of 31 points, and Li Yuan once again added 250 million US dollars of short contracts.
At four o'clock in the morning, ten stocks touched the margin call line of thirty-five points, and Li Yuan once again added a short contract of 230 million US dollars.
At 4:10 in the morning, ten stocks touched the margin call line of 39 points, and Li Yuan filled a short contract worth 230 million US dollars.
At 4:15 in the morning, nine stocks hit the margin call line of 42 points, and Li Yuan filled a short contract of 200 million US dollars.
At 4:20 in the morning, nine stocks hit the margin call line of 44 points, and Li Yuan filled a short contract worth $200 million.
At 4:25 in the morning, eight stocks hit the margin call line of 46 points, and Li Yuan filled a short contract worth 180 million US dollars.
At 4:30 in the morning, eight stocks, forty-eight points, and one hundred and eighty million dollars.
4:35 in the morning, seven stocks, fifty points, and one hundred and sixty million US dollars.
…
Basically, a round of battle lasts five minutes, and the traders are already exhausted.
Li Yuan was really daring. In a short while, he added another 1.63 billion US dollars of short contracts, and the total number of short contracts had reached 6.1 billion US dollars.
"boss……"
Someone spoke.
"Stop talking nonsense and keep making up!"
Li Yuan looked very serious.
At 4:40, seven stocks hit the margin call line of 51 points, and Li Yuan added a short contract of 160 million US dollars.
At 4:42, seven stocks hit the margin call line of 52 points, and Li Yuan added a short contract of 160 million US dollars.
Four point forty-three, seven stocks, fifty-three points, one hundred and sixty million dollars.
Four forty-five, seven stocks, fifty-four points, one hundred and sixty million dollars.
Four forty-six, six stocks, fifty-five points, one hundred and forty million dollars.
Four forty-seven, six stocks, fifty-six points, one hundred and forty million dollars.
Four forty-eight...
Four forty-nine...
Four fifty, five stocks, fifty-nine points, one hundred and twenty million US dollars.
Four fifty-one...
Four fifty-two...
Four fifty-three...
Four fifty-four...
Four fifty-five... five stocks, sixty-one points, one hundred and twenty million dollars.
Finally, at this moment, the entire trading room fell silent.
Li Yuan forcibly added another 1.92 billion US dollars.
In the end, every second is a battle, and every second is opening a contract.
Both sides entered a white-hot stage.
The traders can only watch as the funds in their hands dwindle.
Of the 1.8 billion US dollars, only 1.2 billion US dollars were left, and 600 million US dollars had been used.
On paper, they have already lost.
As long as those stocks can hold on, it won’t be long before they go bankrupt.
Because each subsequent contract supplement is only one point, and the effect of the contract supplement will be worse as time goes by.
It takes two times to fill up the space for one point.
Although there is still US$1.2 billion, it can be leveraged to get US$7.2 billion in chips.
Li Yuan knew that it would become more difficult as time went on, but he didn't expect that he still overestimated the money he had.
When you make up for it later, it's no longer just making up money, it's completely useless.
The 1.2 billion US dollars in his hand can only suppress the stock price from rising by another 30 points at most.
Much lower than expected.
He thought he could hold out until the stock price doubled, but it turned out to be less than doubled.
The reason is that there are too many short orders at the bottom.
It can also be said that he is not very good at math.
But everyone is holding on.
If the opponent is really strong, he will not pull it up so little by little, nor will he wait for a minute for his short order to eat up his chips.
This is a pure counter-party situation. The more money he invests, the more money will be consumed.
At this moment, more than 3 billion US dollars is indeed a lot, but more than 3 billion US dollars mobilized by the other party is also a lot, and leverage must have been used.
Of the sixteen stocks, only five are still holding on.
The other eleven stocks are basically trading sideways at this time.
At this time, the trading volume began to slow down a lot.
It was the last few minutes and no one seemed to want to argue anymore.
After working hard all day, there’s no point in continuing to fight because everyone can definitely hold on.
At this time, the five stocks that I had been holding on to began to fall sharply.
There was no support from below and the stock price soon fell below the support level.
It had originally risen by 61 points, but in the blink of an eye, it became 36 points.
"Boss, the other party can't hold on any longer!"
Some traders were so nervous that they couldn't help but shout out.
In this trading room, they have almost no right to express their opinions.
"It's not that they can't hold on, but they want to reduce the increase a little bit. There are no chips in the whole market. They have the final say on the stock price. And we will definitely not continue to smash it at this position. They will not let the stock price rise too much and leave enough room for tomorrow."
After all, those people have heavy holdings in stocks, and there is definitely a gap between the funds entering the market today and those with heavy holdings.
Li Yuan invested less than 2 billion US dollars in these five stocks. Combined with his original heavy holdings, even if the stock price dropped to 36 points, the net value today would have increased by at least 20 points.
This increase is enough.
A sudden increase of 40 or 50 points would scare anyone who sees it. For investors, it may even have the opposite effect.
After all, it has risen so much, so just ask for redemption and leave. I have made enough money.
If Li Yuan exchanged identities with them, he would do the same.
An increase of more than ten points is best, which can stabilize the original investors and may also attract funds from outside.
This is also good news for Li Yuan, at least his account looks much better.
A drop of more than 20 points could reduce his paper loss by $500 million.
You don't need to look to know that today's book loss is very ugly.
There are four minutes left until closing.
There were suddenly large sell orders for two stocks that I didn't follow when they were around 20 points at the beginning, and the market below collapsed directly.
"Grass!"
Li Yuan couldn't help but curse. These bastards on Wall Street were really tolerant.
He originally thought that the two stocks should have collapsed long ago, which would have freed up a lot of financial space for him.
As a result, I have persisted until now.
It’s almost closing time!
"You beautiful people should treat your compatriots well... You are so cruel to your own people, aren't you afraid that your children will be blind?"
