Chapter 187: There is no future in cooperating with Li Yuan
After Li Yuan discovered that the situation was about to collapse, he decisively mobilized 200 million US dollars, leveraged it and rushed in directly.
The last wave.
There is no more food to eat.
The initiative is now in his hands.
It’s like a certain special fruit. The fruit farmers don’t have much of it, but there are many dealers who want to buy it. So the pricing power naturally lies in the hands of the fruit farmers, and they don’t have to worry about selling it.
The situation at the moment is that fruit farmers have too much goods, but there are few fruit vendors who can buy them. What’s more, those fruits cannot be stored for a long time, and if they are left any longer, they will rot in the fields.
You don’t want to sell? There are plenty of people who are willing to sell.
The amount of fruit vendors collect is fixed. Once they have collected enough, they no longer want the fruit and it will just rot.
Li Yuan was like a fruit vendor at this time, waiting for quotes from the fruit farmers.
He will buy from whoever offers the lowest price.
If the fruit farmers are capable, they can make some money and then unite all the fruit farmers not to sell to themselves, so that the dealer cannot get the money, and then they can set the price arbitrarily.
After experiencing this incident, will those fruit farmers still dare?
He has been stabbed and is about to bleed to death. Instead of healing his wounds, why is he fighting a tug-of-war?
Wait for their creditors to come and ask for money? If they don't pay, steal his wife or daughter? Kick him out of the house?
After Li Yuan launched the $1.2 billion leveraged short contracts this time, everything collapsed.
If the problem is discovered early, perhaps millions of dollars could be saved.
And those who leveraged will suffer this time, but those who did not leverage still have a way out.
As the stock price returned to a horizontal level, the first wave of selling occurred.
That batch of leveraged funds that were long have already been liquidated.
After the forced liquidation, all the chips were thrown out at once.
No one dared to answer.
The result of no one taking the offer is that the price will drop directly.
The chain reaction caused by the price breaking through is that more leveraged funds will be liquidated, and it will be too late even if you want to replenish the margin at this time.
Because the stock price dropped by more than 20 points at once, the required margin was huge.
With six times leverage, a dozen points means losing everything.
Even if only 30 million US dollars were used to leverage 180 million US dollars of leveraged funds, there has been an amplitude of more than 40 points from the highest point to the present. An additional 100 million US dollars must be added to avoid a margin call.
How many companies can easily come up with $100 million?
So it was a series of explosions.
In almost a very short period of time, the stock price dropped directly to forty-five points below the water level.
"Hurry up and get in and get your chips! We'll take any amount below 40 points."
Li Yuan wanted to eat the meat first and he wouldn't wait any longer.
The longer you wait, the greater the variables.
His short position funds yesterday were 8.5 billion US dollars, with a floating profit of 2.1 billion US dollars, so as of today, he only has 6 billion US dollars of short position funds left.
However, he continued to increase his short positions by $1 billion and finally covered his short positions by $1.2 billion, so the overall amount was still more than yesterday.
Although in theory the longer you wait, the cheaper the chips will be.
But there is always a gap between reality and theory.
Because there are unexpected factors in reality.
What if other funds come in to take over?
What if after reaping a wave of Wall Street funds, another wave comes back to take them?
They can also make dozens of points of profit, and save their allies a little, at least preventing their allies from becoming desperate and ambush them with guns every day.
The number of chips that burst in the first wave was very large, adding up to at least more than 3 billion US dollars.
And at the beginning no one dared to answer the call, but Li Yuan answered it very smoothly.
You have to know that this is $3 billion after a 45% drop, which converts to the opening price, $5.7 billion.
In less than ten minutes, Li Yuan had eaten up all the chips.
Later, a little more money was added and the stock price began to rise, so the total profit was US$3.2 billion.
Converted into the opening price, it is exactly 6 billion US dollars, because the chips eaten up subsequently were around 40 points, unlike the beginning, when the chips were eaten up at 45 points underwater.
This means that part of his profit data today has come out.
Six billion dollars minus three and a half billion dollars.
Because he ate up all the chips that were liquidated, the overall chips were shrunk sharply. Those who did not use leverage became frightened birds at this time, and no one dared to sell.
So, the stock price began to rise, and it rose very quickly, and finally stabilized at about 17 points below the water level.
At this stage, Li Yuan didn't buy much at all because no one was selling.
After all, it's a bargain.
Li Yuan just took advantage of the situation to rob, and the rest would depend on the negotiations.
Negotiations are definitely on the table.
After all, at this time, Li Yuan still had $4.3 billion in short contracts to repay.
How to maximize the benefits of these $4.3 billion depends on the outcome of the final negotiations.
Of this short order of $43, $2.1 billion was yesterday's net profit. Theoretically, as long as the opening price today does not exceed yesterday's, all of it can be obtained.
But now that it has fallen, it is natural to make more money.
Based on the current 17-point drop, the $2.1 billion can earn $2.45 billion.
The reason for this is that this data is only for Li Yuan's convenience in memory, and he forcibly separated out the previous data. In essence, the 2.1 billion US dollars are no different from the previous ones. Now Li Yuan forcibly gives them a profit attribute, and the cost is zero.
In addition , the short orders of US$2.2 billion were opened at an average of 17 points above the water level today. Even at the current position of 17 points below the water level, the profit was still more than 38 points.
That is about 800 million US dollars, and it can be fully repaid by buying 1.4 billion US dollars in chips.
"As for the contract, we are only willing to undertake the work at thirty-five underwater points."
Li Yuan gave instructions to the traders.
Those people were only willing to give up 17 points? He couldn't accept that.
Now he is in a secure position and does not have many short orders.
If they have the ability, they will raise money and drive up the stock price, forcing the customer to add additional margin.
He is too flexible now, with more than 3 billion US dollars in cash and 2.1 billion US dollars in short contracts. The safety line of a margin call would only be broken if the stock price doubled today.
Want him to add margin? Those people on Wall Street, just invest $10 billion first.
Soon, the trader prepared the contract and waited for the other party's response.
There are basically only sporadic transactions now, and I guess it's some retail investors coming in to try their luck.
However, there is no time to delay. If they delay any further, other institutions may discover the situation and directly enter the market to short sell. Wall Street will suffer a great loss, and Li Yuan will also lose part of his profits.
Because there are always people who can see the situation clearly and see that short selling now is a sure-win business.
Li Yuan took over at thirty-five points underwater, so they would take advantage of the fluctuation from thirty-five points underwater to seventeen points underwater.
This is also big meat.
Soon, the other side responded and began to sell a large number of sell orders around twenty points.
Li Yuan didn't want to wait any longer, so he gave the order directly: "Open all our demand contracts. They can sell it or not. We only need a little bit. If you are late, it will be gone."
The trader quickly began to open all the contracts.
According to the position of thirty-five points underwater, he can make another $735 million from his $2.1 billion in net profit.
In addition, the short contracts worth US$2.2 billion at around 17 points above the water level made a profit of about 60 points, or about US$1.3 billion.
emm……
It seems that the remaining 4.3 billion US dollars can almost be earned.
Li Yuan just reacted at this time.
He looked at the trader, who had already finished his work.
"A contract worth several hundred million dollars?"
He asked.
One of the traders immediately said, "Boss, three hundred and forty-six million and five hundred thousand dollars."
"Well, bite this spot."
The data Li Yuan roughly calculated is definitely inaccurate, due to various transaction fees and the huge scale.
The most accurate data is calculated by the trader based on the number of contracts.
Because if the price goes up one point, the loss will not be more than 3 million US dollars, but more than 40 million US dollars.
If it goes up ten points, it will mean a loss of 400 million yuan in profits.
If we take over according to their 20 underwater points, it is equivalent to losing 15 points of profit, which is 600 million US dollars.
His net worth is not that much yet.
After showing that only a few chips were needed, someone gave the chips in almost an instant.
Because if we don’t give it to you, no one will want it.
The situation suddenly became clear.
The stock price starts to rise, and it is impossible for anyone to continue selling at this time.
"Next, I will open short orders slowly. When the stock price rises a little more, I will use 1 billion US dollars to open short orders. I won't use leverage, and I won't open too many at once. I will try to open 200 million US dollars tonight and 300 million US dollars tomorrow night..."
Next he needs to find a new place as this place has been ruined.
But if you continue to open short positions, you will definitely be able to make some profit.
These stocks that had no chance to go up were drained one after another, especially by him, who forcibly took away billions of dollars.
Originally, the total market value of these stocks was only 120 to 130 billion US dollars. At the highest point last night, the total market value may have exceeded 200 billion US dollars, but it was all a bubble. This time, he was not the one who drew the most blood.
The ones who suffered the most blood loss were probably those on Wall Street, who took away at least $13 billion.
The total market value is over 100 billion US dollars, and nearly 20 billion US dollars have been withdrawn. What is left?
It was like a cow with all its meat removed, so that flies would slip when walking on it, but Tang Monk could eat it without breaking any precepts. But when he finally pried open the bone marrow, he found it was empty.
What is left of value?
A cow weighs one thousand kilograms, but actually it only has eight hundred kilograms of meat.
This is the financial bubble. In essence, there is not that much of it. By using a huge framework and some additional parts and functions, the value of 20 billion worth of real materials has been increased to more than 100 billion.
The stock price will inevitably fall next, and we will slowly wait for fresh blood to be injected. If no new funds enter the market, we will all die.
In fact, he was dangerous on several occasions, especially in the early hours of Wednesday morning.
However, Wall Street was also under great pressure at that time. Li Yuan could invest another 60 to 70 billion US dollars later. Even if they tried their best, they did not dare to continue investing as they had already invested hundreds of billions of dollars that day.
Plus there are traitors...
Tonight it was all about their internal turnover, and he actually didn't do much trading.
On the one hand, he smelled a conspiracy, and on the other hand, he had too many short contracts in his hands, which inherently involved great risk.
It was fine at first, but now that the harvest is about to come, it is not worth taking that risk.
He didn't want to stay in the trading room anymore, so he said, "Just do as I say, don't use other funds, I'm going back first."
After saying this, he opened the door of the trading room.
I have been feeling really bad during this period.
I still sleep eight or nine hours a day, but the problem is that I start dreaming as soon as I lie down, and when I wake up it’s as if I hadn’t slept at all.
He was in this state in his previous life, and the only time he slept comfortably was when he was undergoing a gastroscopy in the hospital.
Because I was given general anesthesia.
He was even a little addicted to that feeling.
The mental state after deep sleep is really different from usual, and the whole person has more energy to do anything.
After finishing this issue, take a good rest...
Damn, I'm only nineteen...
Ten days of trading is more tiring than staying up all night in an Internet cafe for a month.
Walking out of the trading room, Li Yuan saw Yao Yingsong looking through some documents, so he said, "Manager Yao, I'm leaving first. I won't be coming to the company for the next few days."
"Okay, boss, take care."
Yao Yingsong saw the fatigue in Li Yuan's expression, which was a very bad sign.
Li Yuan has expanded his business so much, but he just quit. Today, he only traded for two hours and then left. This is also unusual.
Perhaps Li Yuan was not in a good mood, coupled with today's gains...
Anyway, no matter how far Li Yuan has come, he is someone he should look up to.
Even if he loses money, he will definitely make it back once Li Yuan adjusts his condition.
At this time, he had already read the causes and consequences of Chen Jie's case. He would sort out the problems and report to his superiors tomorrow.
Only the leader can step in to deal with this matter, there is still some hope.
…
Late at night, Ye Sheng, who was in the capital, was called over by his father.
He has already fallen asleep.
After all, it’s almost one in the morning.
He has been living a comfortable life recently. He was transferred back to Beijing. Although there are no big projects for him to be responsible for, at least he doesn't have to waste his time outside.
Just slowly gain experience. At most, you can endure another ten years or so, and you can always move up. After all, the Ye family has the background.
Otherwise, ordinary people will not have the authority to be transferred at will, and they have to stay wherever their leaders tell them to go.
He came to the study room feeling sleepy, saw his father, and asked, "Dad, are you working overtime again today?"
Ye Xing is already in his fifties. He is sitting at the desk with a report in his hand.
"Yes, there was a meeting. It was also during this meeting that I saw some data . I remember that when you were in Jiangzhou before, you were responsible for cooperating with Li Yuan, right?"
Ye Sheng was surprised and said, "Yes."
Ye Xing stared at Ye Sheng and asked, "Then why did you leave?"
"I don't think there's any future in cooperating with Li Yuan. Dad, you don't know that Li Yuan is extremely arrogant, and his fame is totally disproportionate to his ability. He is very powerful in the domestic market, but he is weak in the foreign market. I..."
