Rebirth of the Capital Legend

Chapter 249: A trap to lure more people!
"Okay." Qu Zecai responded.

He then ordered the traders to continue short selling standard pound contracts and short the pound exchange rate.

At this time, with the entry of a large number of investment institutions and the change in expectations of many investor groups in the foreign exchange financial market regarding the pound sterling exchange rate, the pound sterling exchange rate has risen from 1.468 when Su Yiling's traders first opened positions to 1.482.

The exchange rate is based on the British pound.

Their $3500 million short position in the first phase has already resulted in losses of more than $2000 million.

However, Su Yi did not care too much about the US$2000 million loss on his holdings.

Before the outbreak of the "British referendum to leave the EU", as funds were gradually invested, he hoped that the pound exchange rate would rebound as high as possible.

In this way, he can lure more long funds to come in and hunt.

Only then can we reap sufficiently rich profits from this "black swan" event.

After all, the foreign exchange financial market is different from the stock trading market. Instead, it is somewhat similar to the futures trading market. Whether you are going long or short, you need a corresponding counterparty.

"Mr. Su, the affiliated trading account we opened at FXCM International has asked us to add another 5000 million US dollars in margin." As Su Yi was staring at the changes in the pound exchange rate, Wang Huaijin walked in and said, "They said that our positions are high risk. If we don't add margin, their risk control system will restrict us from opening further positions."

Su Yi frowned when he heard what Wang Huaijin said.

He injected 1 million US dollars into the 'FXCM International' trading platform.

At present, although the holding account has lost more than 2000 million US dollars, there is still 4000 million US dollars of margin in the account to bear the losses from subsequent account fluctuations.

At this time, the other party requested an additional deposit of 5000 million US dollars.

This made Su Yi very unhappy.

However, at this time he had already opened so many short positions in FXCM International, and the entire plan had already entered the second stage.

At this time, it is no longer appropriate to close the position and withdraw funds, and then change the platform.

Therefore, even though he was unhappy, he had no choice but to inject another 5000 million US dollars into the FXCM International's affiliated trading account.

Afterwards, Su Yi considered the possible extreme short squeeze by the bulls during the fluctuations in the pound exchange rate.

I couldn't help but concentrate my plan to open positions in the accounts associated with 7 trading platforms on 3 trading platforms.

So far, except for the 'FXCM International' trading platform.

Su Yi injected US$1.5 million into each of the other two major foreign exchange trading platform associated accounts, UBS International and Yingxiu Finance, while the remaining US$2.5 million was used by Su Yi as reserve funds and was not injected into the associated trading accounts.

When funds are concentrated...

The company's trading team continued to increase its short positions in the pound in accordance with Su Yi's instructions.

On Monday, May 5, the short positions of the pound sterling of the "Huayi Chengyuan No. 23" fund product totaled US$1 million, and at this time, the pound sterling exchange rate had broken through 5000.

On Tuesday, May 5, the pound short position of the 'Hua Yi Cheng Yuan No. 25' fund product reached US$1 million. At this time, the pound exchange rate reached 7000 and was about to break through the 1.488 mark.

At this time, the British government announced some favorable measures to stimulate the economy.

There is also the Federal Reserve's suspension of interest rate hikes and the Bank of England's continued market operations.

All of these have caused the exchange rate of the pound to rise steadily, and have also accelerated the change in expectations for the exchange rate of the pound, and have led to more and more follow-up institutions entering the market to go long.

On Friday, May 5, the short position of the fund product "Hua Yi Cheng Yuan No. 27" on the British pound exceeded US$1 million. At this time, the British pound exchange rate officially broke through 8000.

Also at this moment.

The loss of Su Yi's 3500 million US dollars short position on the 'FXCM International' trading platform has exceeded 4000 million US dollars.

And the 'Huayi Chengyuan No. 1' fund product holds a total of US$8000 million in holdings.

The total loss has reached 6000 million US dollars.

Faced with the entire fund product's huge short position in the pound and a huge loss of up to 6000 million US dollars.

Trading team manager Qu Zecai stared at the main computer interface that summarized the holdings of all the fund's associated accounts. His heart was tense and he felt under great pressure.

"Boss Su, if the pound exchange rate continues to break through, our position losses will be greatly magnified." Seeing that the pound exchange rate has no intention of stopping, Qu Zecai hesitated for a while, but couldn't help but remind him, "The pressure of 100 times leverage is too great. In this case... I'm afraid we dare not increase our positions any more."

Su Yi's eyes were always sharp as he stared at the huge loss of the open account. There was no tension on his face. He gently patted Qu Zecai on the shoulder and said, "Manager Qu, don't be nervous. It's only a loss of 6000 million US dollars. We can handle it."

"Mr. Su... still wants to increase his holdings?" Qu Zecai was surprised when he heard what Su Yi meant.

Su Yi nodded slightly: "The plan has only just begun. The curtain has just been raised on the shorting of the pound. The so-called luring the enemy in... When the pound exchange rate broke through from 1.46 to 1.49, the loss of our investment was only 6000 million US dollars, which has exceeded my expectations.

In the future, we will definitely continue to increase our holdings.

But..."

Su Yi paused and continued: "The rhythm should be controlled a little bit."

"How does Mr. Su plan to control the pace?" Qu Zecai asked.

The total funds they have are only 7 million US dollars, and they have invested 8000 million US dollars so far, plus more than 6000 million US dollars in losses from their holdings.

Although it seems that there are still more than 5 million US dollars in available funds.

But with a leverage of 100 times, once the pound exchange rate accelerates upward.

Its margin requirements for holding positions will expand exponentially, and the $5 million is unlikely to last long.

Su Yi smiled and did not answer directly. Instead, he called Wang Huaijin and instructed: "Boss Wang, the plan has come to this point. It's your turn to play again. Just like last time... Use the gossip channel to reveal our current situation to other institutions and attract more institutions to go long."

"Boss Su, this..." Wang Huaijin said in surprise, "Will this aggravate our position holding difficulties?"

Su Yi said: "You can't catch a wolf without sacrificing a child. What I want is for them to continue to squeeze out the short position, to expose our predicament and attract more wolves, so as to push the pound exchange rate up a bit, so that we can maximize our short positions at the high point where long positions are concentrated."

"But once the pound exchange rate breaks through the 1.5 mark..." Qu Zecai said worriedly, "We may not be able to withstand it!"

"It's okay." Su Yi said, "Manager Qu, you just follow my plan and trading instructions. Manager Wang, you just do what I tell you to do. While the news of our organization is quickly fermenting in the market and various institutions continue to enter the market, I will go back to the mainland before the pound breaks through the 1.5 exchange rate mark." "Mr. Su is going back to the mainland to raise more funds?" Wang Huaijin guessed Su Yi's purpose and asked.

Su Yi replied: "That is indeed the purpose, and there is no need to hide my itinerary. The more people know about it, the better. In this way... many people inside and outside the venue will think that we are already meat on the chopping board and can be slaughtered at will."

"But in this situation, who would lend us money?" Qu Zecai said, "Whether it's the business owners who trust President Su or the domestic financial institutions, they basically lend us money when it's sunny and take it away when it's raining. They will only add icing on the cake, and will never help us in times of need."

"It doesn't matter." Su Yi said, "This is just a trick to induce longs to squeeze out."

According to Su Yi's past memories.

He knew that in the month before the "British referendum to leave the EU", the pound sterling exchange rate had never broken through the 1.6 mark in history.

In other words, according to historical trends.

The pound sterling exchange rate still has a maximum upward distance of 1000 basis points.

According to their current position size, exhausting the subsequent $5 million margin will be enough to hold on until the pound exchange rate breaks through the 1.6 mark.

So, for Su Yi.

Whether or not you can raise money in the end is no longer important.

"Oh, there is one more thing..." Su Yi thought for a moment and reminded Wang Huaijin, "In the leaked information, it is stated that the available investment funds of our institution are only 4.5 million US dollars. In this way... when we show that we dare not increase our positions rashly, our position losses continue to expand, our capital chain is tight, and we have no spare energy to continue to replenish margin, other institutions will feel at ease to enter the market and force short positions and go long, and encircle and suppress us without any worries."

"Okay." Wang Huaijin nodded, keeping Su Yi's instructions in mind.

After Su Yi gave the two people instructions, he asked Lin Xiaoxiao to book a flight for him back to the Magic City.

Coincidentally, the next two days happened to be weekends and the global financial markets were not open, so he had enough time to raise funds and plan follow-up plans.

After returning to the Magic City...

Su Yi went home first to see his parents and Chu Wan.

Then he expressed his desire to raise funds through the network of contacts he had previously made.

When Su Yi expressed his intention to raise funds, through Wang Huaijin's arrangement, a series of news spread everywhere that the hedge fund "Hua Yi Chengyuan No. 1" headed by Su Yi was deeply mired in the quagmire of short selling the pound, its positions suffered huge losses, it was forced to short sell by international capital, and was facing a margin call. It spread to the financial circles of Hong Kong and the domestic financial circles.

Of course, it has also attracted the attention of many bosses in the domestic business community.

"I'm sorry, Mr. Su, my company's capital chain is a bit tight right now, and I really can't help you!" A business owner in Shanghai, who had vowed to help Su Yi solve any problems he might have in the future when he subscribed to the 'Hua Yi Expedition No. 1' fund product, laughed dryly and refused Su Yi's request, "How about... Mr. Su try Mr. Wang's place, he should have some idle funds."

"No need." Su Yi smiled, "I appreciate Mr. Hu's kindness."

"Brother Su, I support you." Unlike President Hu's refusal, Lin Minghui laughed loudly and said heroically, "I don't have the courage to gamble billions on the pound exchange rate, but this matter...Brother Su dares to do it, then I will definitely support you with all my strength. I will support you with 8000 million funds. If the account is really blown up, this 8000 million will be regarded as my free support to you, and you don't have to pay it back."

"Boss Lin is still very generous." Su Yi said with a smile, feeling a little moved.

He looked around and found that Lin Minghui was the first one to lend him money, which meant...his friendship was not in vain.

"I will definitely pay it back." Su Yi said with a smile, "I invested Mr. Lin's 8000 million in the foreign exchange market. The profits will go to Mr. Lin, and the losses will be mine."

"Haha...Brother Su, it's being too polite to say that." Lin Minghui said with a smile.

And after Lin Minghui...

In the following period of time, Fang Xingyuan also took the initiative to send 1 million yuan in funds.

The rest, Xu Qiao, Lao Zhang, Lao Wu and Brother Chen, four friends from the main group of hot money of 'Magic City Super Short Gang', each supported 1000 million yuan of funds.

In two days, Su Yi raised a total of 2.4 million yuan from his friends through his own connections.

Then, through the introduction of Fu Guoxiang, general manager of the "Huaxin Securities Financial Street Fuxing Road" branch, he obtained a total of 1 million yuan in funds from several large state-owned banking institutions, using the fixed management fee income of the "Huayi Expedition No. 2" fund product as collateral.

So far...

After two days of hard work, he raised a total of 4.4 million yuan.

Such a sum of money seems huge.

But after converting into US dollars, with a leveraged position of 8000 times of 100 million US dollars, it actually does not play a very decisive role.

After all, this is just a small amount of money.

As long as the pound exchange rate jumps up by more than 200 basis points, all the losses will be gone in an instant.

But fortunately, something is better than nothing.

Moreover, after this fund-raising activity, Su Yi saw clearly which relationships can be utilized in the future and which relationships are illusory.

Let him know who he can make friends with and who he cannot make friends with.

"Su Yi... have you returned to Hong Kong City?"

On May 5, when Su Yi flew back to Hong Kong City and just landed, Fang Wanqing called him.

Su Yi didn't expect that she would call him at this time. He was stunned for a moment, then answered the call and said, "I just arrived in Hong Kong City. Miss Fang, is there anything urgent?"

"I heard about your story." Fang Wanqing said, "I know you are short of money now, I can help you."

"Can you help me?" Su Yi was surprised.

"Yeah." Fang Wanqing nodded, quickly said a place, and asked Su Yi to go find her.

Su Yi thought about it and decided to go to the meeting place according to the address she gave.

"This is my aunt." As soon as Su Yi saw Fang Wanqing, she hurriedly introduced him to a middle-aged lady beside her. "A director of Huifeng Bank, she has some relationship with my aunt. My aunt said that she is willing to guarantee you. You should be able to borrow at least 3000 million US dollars from Huifeng Bank, right, aunt?"

As she spoke, Fang Wanqing quickly turned her head to look at the middle-aged lady and winked at her.

"Oh, girl, I will never go back on my promise to you." The middle-aged lady said, looking Su Yi up and down, and seemed quite satisfied. She continued, "However, young man, this money is guaranteed by Miss Fang for you. I don't ask you to pay it back at any time, but you must always remember this kindness in your heart."

(End of this chapter)