I just want to enjoy life

Chapter 753 760 big funds enter the market

"40 billion U.S. dollars?" Anthony on the phone was shocked, silently calculated in his heart, and said in disbelief: "Boss, do you know how much it is? According to the current price, it is at least 50." Tons of copper!"

"Not bad!" Lin Haocang replied decisively: "It's 50 tons of inventory. I want to play a big game in the copper futures market this time."

Hoarding spot goods first and then pulling futures is a practice that futures professionals despise.However, in the history of commercial development, this kind of behavior often appeared. In the Qing Dynasty, Shanxi merchants bet on the second year’s harvest by monopolizing sorghum and sesame oil, which was the prototype of futures.

The reason why Lin Haocang did this was to reduce the risk of entering a new market. After all, he was not familiar with the rules of the London copper market. If a certain delivery day and month cannot be delivered normally, there will be a big problem at that time.

Since the March contract can be bought and sold every day during the trading day, there is no phenomenon of multiple short squeezes, because the short sellers can absorb the spot copper in the market in the early stage and deliver when the main contract expires. After all, the market has every day. Copper delivery now.

After a little struggle, Anthony gave up his idea. Lin Haocang is his boss and a trading genius. He has subconsciously obeyed Lin Haocang's orders. Besides, the current funds are as much as 50 billion U.S. dollars. $40 billion to reserve spot copper.

The remaining funds are more than enough to operate the market with [-] times leverage.

Anthony, who put down the phone, continued to absorb the soon-to-expire copper futures contracts in the market, and then frequently shipped the spot copper from the 1me London warehouse to the warehouse he rented.This process lasted until the end of April, and only absorbed 4 tons of copper. At this time, Lin Haocang called from Scotland and ordered Anthony to stop absorbing.

The economic data for the first quarter of the United States has come out, and the growth rate of 7 fell below most of the glasses in the market, which also made option investors who announced on April 4 that they would give up their right to go long were full of regret.

In the United States, the largest trading volume of futures and options of a variety is often not on the same exchange. For example, the largest trading volume of futures is the Chicago Mercantile Exchange and the New York Stock Exchange, while the largest trading volume of options is the Chicago Board Options Exchange .But in London.Options and options of the same variety are concentrated on the same exchange.Such as 1me's copper options and options trading.

The design of the 1me copper option is roughly the same as that of the futures. The trading volume is also a three-month option. It can be freely traded on any day before the execution month, and the first Wednesday of the execution month is the announcement day.The third Wednesday is the execution day.Keep an eye on the market, usually on the third Wednesday of each month.Because the option executive enters the market, a new short or long position will be formed.

In January and February, the market's expectations for future copper prices were obviously not optimistic, and even the atmosphere of bearishness was very strong.As a result, a lot of bearish options in the market were sold. Although the bears suddenly launched an attack on March 1, the copper price also fell by 2 US dollars, but the bulls stubbornly pulled the copper price up to 3 US dollars on the second trading day. , making the dream of short sellers want to execute empty, and finally forced to give up most of the short options on April 30.

Logically speaking, this should be a good opportunity for bulls to pull up, but some investors who bought bullish options in January gave up their power because the current copper price did not rise to the ideal price. Therefore, even in the first quarter of the U.S. economic data Under the premise of the sharp rise, the trading volume of copper futures is also shrinking day by day. At the lowest point, less than [-] lots were traded a day.

The market is waiting for an opportunity, an opportunity to change the trend.

This opportunity finally arrived on the day when the May option was exercised!
On Tuesday, April 4, the penultimate trading day in April, Lin Haocang was in the library of the University of St. Andrews.

"What's the situation now?" Lin Haocang checked the latest market prices on the computer, while answering the phone call from his agent Wallace.

"The latest quotation is 5915, the US dollar, and the trading volume is still maintained at around 40 lots." Wallace briefly reported the current market and yesterday's trading situation.

On the other phone, Anthony has been listening silently. His task is to follow Lin Haocang's order to place an order. Of course, he uses another brokerage seat. In his account is the funds of Sky Capital, while in Hualai On the other side is the funds of Skyline Capital.

"Buy 10 lots and entrust the June copper futures contract at the market price." Lin Haocang said.Entrusting at market price means making a deal at the latest market quotation, which is the easiest way to make a deal.

"Okay!" Wallace understood, and then switched the line, connected with other traders, and started to match in the market.

"Anthony, you should also start to enter the market and build positions, and pay attention to the changes in the market." Lin Haocang instructed Anthony.For the copper that is matched by off-site telephone, the real-time transaction situation cannot be seen in the market, and the transaction situation of both parties can only be speculated on the computer.

Before Anthony agreed, the phone rang, and Wallace said in a flat tone: "Mr. Lin, the contract of 10 lots has been sold, the price is 5920, and the deal is the contract on June 6."

"So fast?" Lin Haocang couldn't react for a while, and then he refreshed the data on the computer, and found that the current price has risen to 1920 US dollars.

"Open another 10 lots of contracts, and the market price is still in June." Lin Haocang decided to increase his position again. His purpose was to push up the copper price. Naturally, he opened a new copper position to clear the long and short positions in the market.

"10 hands?" Wallace was taken aback for a moment, and then said happily: "No problem, I'll do it right away." Then he switched the line.

"Anthony, you are gradually increasing your position in the July contract to jointly push up the current copper price. Don't worry about operating, don't forget that we have copper in our hands, so we don't have to be afraid of being cornered." Lin Haocang turned to Anthony who had been listening Said.

As May is approaching, the trading volume of contracts on each trading day in May has begun to shrink. Lin Haocang is worried about liquidity, so the contracts he bought are all in June. The second main month of the month.

The reason why Anthony was not allowed to buy and sell the June contract was that Lin Haocang might be taken over by Anthony during the closing process, which would be like changing his left hand for his right hand.Finally, the accumulated positions still have to be liquidated.The risk is much greater.

Five minutes later, Wallace called again: "Mr. Lin, all 5 contracts have been sold, with an average price of $10."

"Close 10 lots and sell at the market price. Those contracts just now." Lin Haocang didn't wait for Wallace to finish speaking.I couldn't wait to issue an order.

"Easy?" Wallace was taken aback.But he quickly reacted and immediately started to act.In fact, brokerage companies can be market makers, and they will match the rest of the orders in the market.Telephone trading is time-consuming and not a good way to trade at all.

A contract of 10 lots appeared on the market and was sold quickly, with the average price still at 5932.After thinking about it for a while, Lin Haocang realized that it was the strength of the bulls, otherwise the market price would definitely be suppressed by one or two levels.

"Continue to buy!" Lin Haocang thought secretly.From this point of view, the market’s view on the market outlook is that optimism has the upper hand, or the bulls want to take advantage of the opportunity to suppress the shorts, or they may have placed a short order in the U.S. copper futures market and come here to hedge.Either way, the trend ahead is up.

But soon, the counterattack of the bears came. Not long after Lin Haocang's 10-lot sell order was placed, the market took a sharp turn. The price of copper 3 plummeted, and soon fell to the position of 5925 US dollars.

"Open another 10 lot buy order, 5925 US dollars, still in June." This time, he is not entrusting with market price, but a limit order, the purpose is to prop up the current falling situation.

What he didn't expect was that only 10 of the 5 orders were sold in the end, and the price of Copper 3 rose to more than $5925. It should be another bull in the market who rushed ahead of him. The short selling order was accepted.

"Don't withdraw the rest of the orders, entrust them at the market price, and see how far the copper price can be pushed up this time!" Facing Wallace's question, Lin Haocang said decisively.

After 10 minutes, the remaining 5 lots were finally sold, and the average price was pulled to $5934, while the current copper price has risen to $5937.

"It seems that the opponent's strength is very strong, and they actually wiped out the empty orders and extra exchanges at this price!" Lin Haocang shook his head, trying to drive away the dizziness. This time is his rest time, because of the time difference. It can only be operated at night, because only at this time, the trading volume of Copper 3 in London is the largest.

"Open another 10 lots, buy at the market price, and it's still the June contract." Lin Haocang took a sip of coffee, and then he felt a little sober.He did this to respond to the other party, but in this case, the other party may not understand what he meant, or take the opportunity to sell at a high position to change positions. In short, Lin Haocang's move was very hasty, and there was a very big risk.

Naturally, Wallace would not remind anything of Lin Haocang's actions. In fact, he wished that Lin Haocang would operate frequently, so that he could get more commissions.

This time it lasted for a long time, and it took 10 minutes to complete the transaction. The average price has been raised to 5938 US dollars, while the market price has reached 5941 US dollars.

The situation just now has attracted the attention of the market, and small follow-up orders gradually entered the market to compete with the big bulls for selling orders, which made it impossible for Lin Haocang's lot to be filled at one point, and it took more than ten minutes for all of them to be filled.

"Sell them all!" Seeing a green line drawn from the computer, Lin Haocang ordered Wallace without hesitation.This is a good time to escape at a high level, just to lock in the follower and other bulls in the market. Now it depends on how many long orders they can absorb, and at what price the short sellers are at.

At this time, the bullish sentiment in the market has been fully mobilized by two large purchase orders of 10 lots, and investors participating in the market are keenly aware of the entry of large customers.When the copper price was raised for the first time, most people were on the sidelines, fearing that this was a trap set by the main bulls. As a result, the price of copper futures fell after a while, but the price did not fall to the previous level.

These people's minds began to become active, especially for short-term funds, and they rushed to enter the market before the price rebounded. However, their funds were limited and they did not dare to place too large a lot. In the end, Lin Haocang changed a lot of long orders when he entered the market for the second time.

The profit-making follow-up orders will naturally not let go of the opportunity to make profits again. When the second long order starts to close, these follow-up orders follow up one after another, wanting to build a bottom position before rebounding again, and wait for the first order of the bulls. Three upswings, all these long liquidation orders were eaten in just 5 minutes. Among them, there were short-term short positions changing hands, and some short-term long positions were newly opened, but they all ignored one point, that is, before None of the main long and short positions that were active in the market appeared.

In the phone market, because the number of entrusted hands and the amount of positions are invisible, both parties to the transaction mostly choose operating strategies based on experience and techniques, except for those funds that can manipulate the market.

The opening of 10 lots is enough to stir up the entire market in a short period of time, especially in the way of market order.

Lin Haocang hung up Wallace's phone after waiting for the news of all positions being closed, talked to Anthony on the other phone for a few words, and then took a rest.

As long as Anthony can clear all the positions in time on the same day, Lin Haocang will not be too worried.And Anthony's main task is to receive the copper sales orders that are on the verge of delivery in the last few trading days, and gradually send the cash copper to the warehouse rented in London.

It's just that what Lin Haocang didn't know was that his rest left behind a large number of followers who didn't know how to operate, so that they suffered heavy losses in the short counterattack shortly afterwards.

……

"Manager? The copper futures in the market fluctuated abnormally last time. It seems that there are big funds entering the market!"

In Yokono Yamashima's office, a young trader speaks hastily.In the past half an hour, they saw all the abnormal fluctuations in the price of copper in the market, but they didn't make a move, they just kept watching.

The trading volume of thousands of hands at every turn requires a margin of millions of dollars, or even tens of millions of dollars, which is not an authority that ordinary traders can have.It is also for this reason that the other traders of Chiba Trading Co., Ltd. were indifferent to the fluctuations in the copper price in the previous market. When the funds calmed down, they hurried over to report.

"Continue to observe, don't let them delay my plan." Yamashima Yokono said in a flat tone with no expression on his face.Now his position on hand has been reduced to the lowest level in history, he has fully released the margin, and is preparing to accumulate funds for the next step to raise the copper price.

(End of this chapter)