Rebirth of the Capital Legend

Chapter 257 Further replenishment of funds!
Su Yi glanced at the caller ID and found that it was Qiu Guoyu's call, and a look of surprise was obviously revealed on his face.

"Hello, Mr. Qiu." Su Yi answered the phone and greeted with a smile.

"Xiao Su, you are in Gangcheng now, right?" Qiu Guoyu asked.

Su Yi responded: "Yes, what's the matter? Does Mr. Qiu have anything to ask of me?"

"Not really." Qiu Guoyu laughed and said, "Recently, there have been many rumors about you in the domestic and foreign financial markets. I happened to be in Hong Kong these two days. Are you interested in having a meal together and chatting?"

Su Yi replied: "How dare I refuse Mr. Qiu's invitation?"

Su Yi said, and hurriedly asked which hotel Qiu Guoyu was staying in. Then he looked at the time, left the company, and came to the hotel room agreed with the other party.

"Why did Mr. Qiu suddenly come to Gangcheng?" Su Yi asked after sitting down.

Qiu Guoyu waved his hand, signaling the waiter to start serving the dishes, and said with a smile: "I was bored, so I came out for a walk. I heard that you invested all the money you made in the stock market last year into the foreign exchange market?"

"That's true." Su Yi nodded slightly.

Qiu Guoyu said: "The foreign exchange market is different from the stock market. The bull-bear fight is more cruel. And once you lose the bet or make the wrong decision, there is no way back. There is no room for error."

"I have fully considered the risk issue." Su Yi said.

"Okay." Qiu Guoyu said with a smile, "I know that every time you operate, although your methods are very radical, it is definitely not a whim or a gamble without any guarantee."

"Yeah." Su Yi nodded and continued, "Mr. Qiu called me, it should not just be to remind me of the risks of foreign exchange trading, right?"

Qiu Guoyu laughed and said, "Of course it's not just to remind you."

"That is..." Su Yi asked tentatively.

Qiu Guoyu took a sip of tea and said, "I heard that your current position in the British pound exchange rate has suffered huge losses, and you are constantly being forced to short sell by a large number of bullish institutions in the market, and you are on the verge of liquidation?"

"Although the rumor is wrong, it is generally correct." Su Yi responded.

"It seems that these rumors in the market are all true." Qiu Guoyu said, "No wonder you were raising funds all over the country last week, and even owed the Huo family a favor. But your company's internal control management is too problematic, isn't it? Your main position was established not long ago, and it was completely exposed to the counterparty institution."

Su Yi smiled and said, "To be honest with you, Mr. Qiu, I had someone in the company deliberately leak out the information about the holdings."

"Did you leak it on purpose?" Qiu Guoyu was shocked. He had never expected this.

Su Yi nodded slightly and said, "Yes."

"Why do you do this?" Qiu Guoyu didn't quite understand. "Exposing your positions and strategic intentions too early will give your opponents a chance to launch a precise attack, won't it?"

Su Yi said: "I just want these counterparty institutions to enter the British pound exchange rate market."

"So... you were deliberately spreading the news to lure investors into buying stocks?" Qiu Guoyu was surprised. "If it was a bait, why did you build such a large position in the beginning? Why did you put yourself in the current completely passive situation?"

Su Yi said: "Didn't the ancients say that if you don't venture into the tiger's den, you won't get the tiger cub. If I don't do this, how can these counterparty institutions follow me with heavy positions?"

"Then according to what you mean..." Qiu Guoyu said, "You are sure that the pound exchange rate will go down, and you firmly believe that you can withstand the joint short squeeze of these counterparty institutions, and then usher in the final reversal of the situation?"

Su Yi said: "If I didn't have this confidence, I wouldn't have used hundreds of millions of dollars to gamble, and lured so many counterparty institutions in with large positions."

"Why are you so sure that the pound exchange rate will go down?" asked Qiu Guoyu.

Su Yi replied: "First, the continued deterioration of the EU's economic fundamentals and the sharpening of the internal ideological contradictions between Brexit and non-Brexit in the UK all indicate that the current pound exchange rate is still significantly overvalued. Secondly, the change in the Fed's interest rate hike strategy and the hollowing out of the UK's own economic structure... and other issues all indicate that the pound exchange rate is unlikely to hold up at this level.

Of course, that's what really made me decide to short the pound on a large scale.

It is still about the proposal of "a referendum to leave the EU".

The fact that this bill came into being essentially shows that Britain's national strength is beginning to run out. It is not enough to support the social welfare spending of a number of poor small countries in the EU, and it is unwilling to support them.

In this way, the desire to leave the EU, to live a wealthy life of one's own, and no longer help poor relatives.

As the UK's internal economy becomes hollowed out, social welfare benefits decline, and job opportunities fall, this trend will gradually form and eventually change everyone's expected outcomes.

In general……

Based on my analysis and understanding, I believe that there is no underlying logical basis for the pound sterling exchange rate to rise or appreciate.

So why not go short?"

"Your idea is correct." Qiu Guoyu nodded slightly and said, "But in the financial trading market, sometimes the price trend is not determined by the so-called underlying logic. Just like many stocks, although the expectations and fundamentals are terrible, they can still rise sharply and produce a strong money-making effect under the continuous guidance of the main funds."

Su Yi said: "Although the price trend in the financial market is not only determined by the expected logic, but... in the foreign exchange market, the trading volume and liquidity are extremely large. Even the central banks of various countries cannot rely on their financial advantages to forcibly change the trend and expected direction of the currency exchange rate. Then I believe that the expected logic and the fundamentals are completely biased towards the negative state. At the same time, the market is constantly stimulated by negative news. Even if the counterparty structure that enters the market can temporarily guide the trend of the pound exchange rate and form a short squeeze for me, in the medium and long term, this trend that is completely contrary to the actual fundamentals will definitely not last long, and will definitely be constantly corrected."

"But with your current huge holdings and the remaining available cash flow..." Qiu Guoyu said, "Can you really hold on until the market is corrected and the bulls are exhausted?"

Su Yi said: "I can't guarantee how long it can last, but I know that the pound exchange rate will inevitably go down in the future, which is enough. Moreover, now that the 'Brexit referendum' bill has been approved by the British cabinet, under the corresponding uncertain negative pressure, the bulls dare not push the pound exchange rate up to an extreme level. They can only slowly guide the funds in the market and continuously form a new synergy in the long position.

After all, once the bulls rapidly raise the pound exchange rate, an extreme short squeeze will occur.

Then, investors who currently hold a large number of long positions and have already made some profits will definitely cover their positions in large quantities, thus creating new pressure on the market trend. "

Qiu Guoyu thought for a moment and responded: "According to your logic, once the pound exchange rate continues to rise, many short-term long positions will close and take profits, which will indeed form a situation where more people kill more people to a certain extent."

"So..." Su Yi paused and continued, "In the entire pound exchange rate market, both long and short positions have hit historical highs. After reaching the scale of one million lots, it has become difficult for both shorts and longs to retreat safely and quickly exit and close their positions." In the huge long-short confrontation.

Whether it is the short or long positions, if they give up suddenly, it will lead to the opponent's crazy attack.

As the saying goes, bears never die and bulls never stop.

In such a large-scale confrontation between bulls and bears, unless the opponent's confidence is completely crushed, no one can withdraw from the battlefield safely.

"Indeed." Qiu Guoyu nodded. "As the long and short positions in the pound exchange rate market grow, both the longs and shorts are getting deeper and deeper into trouble. No one can get out safely."

After all, large-scale short-covering would cause a sharp rise in the pound sterling exchange rate.

This will cause additional huge losses to the short sellers who want to exit the market.

Similarly, if a large-scale long position is covered, it will greatly enhance the strength of the short positions on the market, resulting in a tragic situation of longs killing longs in a short period of time, and a comprehensive situation of shorts forcing longs.

Su Yi smiled and said: "The current situation where both bulls and bears are having a hard time getting out of it is exactly what I want."

"Is this exactly the situation you want?" Qiu Guoyu couldn't understand.

Su Yi nodded slightly and said, "If the pound exchange rate is destined to fluctuate downward in the future, then the more net long positions there are in the current market, does it mean that there will be more momentum for future sell-offs? Does it mean that the more short positions I hold, the more excess returns I can earn from the market?"

"I see." It was only then that Qiu Guoyu suddenly realized, "It turns out that from the beginning to the end, you have been digging a hole for the bulls. You are trying to lure the bulls... and the battle line is too long."

"There's nothing I can do about it." Su Yi said, "There are too many smart funds in financial institutions around the world. If I don't take the initiative to jump into the pit and feed the eagle with my own body, how can I let so many institutions enter the market on a large scale to force a short squeeze? How can we form the current situation of millions of long and short positions in the pound exchange rate market?
Now, all it takes is an investment institution with a little foresight.

It can be seen that an epic battle between bulls and bears is brewing in the pound exchange rate market.

Moreover, under the continuous stimulation of news, more and more institutions, retail investors and speculators will be jealous of its potential excess returns in the future and invest in this long-short battle. "

"Famous generals in ancient times could predict the outcome of a war before it began." Qiu Guoyu said, "Xiao Su, you are now... in the British pound exchange rate market, deeply involved in this increasingly fierce battle between bulls and bears, just like the famous generals in ancient times who planned and won battles thousands of miles away!"

Su Yi smiled and said, "Mr. Qiu, you are too kind."

"I was a little worried about you," Qiu Guoyu said. "Now after listening to what you said, I don't have to worry at all. However, as the day of the 'British referendum to leave the EU' is getting closer, the battle between bulls and bears on the market will probably become more and more intense, and the bulls will counterattack more and more fiercely. With the amount of funds you have now, can you hold on to the end?"

Su Yi said: "If Mr. Qiu is willing to support a little bit of funds, then facing the subsequent bad long-short battle situation, my chances of winning will definitely be higher."

"Haha..." Qiu Guoyu laughed, "How much more money do you need?"

Su Yi smiled and said, "Of course the more the better."

"I don't have much money to give you right now," Qiu Guoyu said. "Since you are so confident, I'll give you 2 million US dollars."

"Thank you, Mr. Qiu." Su Yi said with joy on his face.

He knew that Qiu Guoyu came from afar and deliberately wanted to talk to him, definitely not just to discuss ideas with him.

"This is the pension I saved with great difficulty," Qiu Guoyu said. "Please don't let me lose it all. Besides... I'm lending you this money, but I have to pay interest. As for how much interest... that depends on how much profit you can eventually take from the pound exchange rate market."

"That's no problem." Su Yi said, "Mr. Qiu's investment is definitely worth it."

"I hope so." Qiu Guoyu said with a smile.

He took the initiative to provide the funds to Su Yi, and through Su Yi, invested in the British pound exchange rate market. Regarding this idea, he actually hesitated and weighed it for a long time before making up his mind.

After all, this is $2 million in funding.

Although this amount of money is not his entire fortune, it would be a huge blow to him if he lost it.

But...

After carefully weighing the pros and cons for a long time, and realizing that a battle between bulls and bears was about to take place on the pound exchange rate.

He still chose to believe Su Yi.

Because he felt that with Su Yi's character and past operations and investment experience, he would not gamble his entire fortune blindly.

Since Su Yi dares to invest his entire fortune and gamble hundreds of millions of dollars, what is there to be afraid of?
After Su Yi received the $2 million in funding from Qiu Guoyu, he discussed a lot of trading matters with Qiu Guoyu, and then...

The next day, June 6th, Sunday.

With Su Yi's farewell, Qiu Guoyu boarded a flight and returned to the Magic City.

Then, Monday, June 6, arrived.

Su Yi injected the US$2 million into the fund account, but did not immediately invest it into the associated trading accounts of various trading platforms. He simply hid it in the fund account as reserve emergency funds.

And when the amount of funds in his hands became further sufficient.

After two days of preparation over the weekend, the British pound exchange rate once again rose beyond expectations when the Asian session opened on Monday.

With the influx of countless follow-up long investors and the continued increase in net long positions, as well as the stop-loss and liquidation of many short investors, it brazenly launched another attack on the 1.5200 point mark.

(End of this chapter)