Rebirth of the Capital Legend

Chapter 258 The bulls continue to squeeze out!

Faced with the trend of the pound exchange rate once again crossing the 1.5200 point.

At the same time, it is also facing the continued expansion of the holding losses of the main hedge fund "Huayi Chengyuan No. 1".

Even though Qu Zecai, the manager of the trading team, had foreseen this trend before the market opened, he still frowned visibly at this moment.

"Mr. Su, our holding losses have expanded to around 2 million US dollars," Qu Zecai reported.

Su Yi nodded slightly and replied: "Don't worry about the position loss. Just continue trading according to our original plan. When the longs are forcing the market to short and the pound exchange rate rises sharply, we can add some short orders, and then wait for the pound exchange rate to fall back in the short term, and then close the newly added short orders. In short... on the basis of maintaining our current dynamic position balance, we can now conduct grid trading."

"Okay, Mr. Su." Qu Zecai nodded.

Then he turned around and conveyed the relevant trading instructions that Su Yi mentioned to all the traders in the company.

As traders operate...

In the following trading hours, the pound sterling exchange rate continued to fluctuate upward and continued to break through upwards as the short-selling force continued to weaken and the long funds continued to enter the market to force a short.

At the end of the Asian trading session, the pound sterling exchange rate hit a high of 1.5220.

At the end of the European trading session, the pound sterling exchange rate basically recovered all the retracement trends after the passage of the "British referendum to leave the EU" bill, and returned to the short-term high of 1.5240 points.

Then, when time enters the more intense US trading session.

The exchange rate trend of the British pound has once again experienced violent fluctuations, and has been oscillating around the 1.5210 to 1.5240 points.

Throughout the entire day's trend.

The main hedge fund product 'Hua Yi Cheng Yuan No. 1' managed by Su Yi.

All the traders of the company followed his instructions to keep the total holdings unchanged and continuously carried out grid trading of selling high and buying low, gradually reducing the overall holding losses of the fund.

However, no matter what form Su Yi uses to operate.

As the pound sterling exchange rate continues to break upward, the overall loss of the short position of nearly US$1 million held by the "Hua Yi Cheng Yuan No. 1" fund product is still showing an expanding trend.

Moreover, the losses of the hedge fund products he managed continued to expand.

In global financial markets.

Countless investors and numerous foreign exchange investment institutions are completely consistent in their expectations of the trend of the pound sterling exchange rate and their predictions of the results of the "British referendum to leave the EU." They are all completely biased towards the bullish direction.

In the entire global foreign exchange financial market, very few people are aware of the potential risks in the pound exchange rate market.

Very few people think that Britain will actually leave the EU.

After all, in everyone's inherent impression, from the moment the European Union was established, the United Kingdom has been an extremely important role among the EU member states.

Moreover, no matter whether we analyze from the perspective of macroeconomics or future development direction.

Let’s analyze it from the perspective of political impact.

It is the best option for the UK to remain within the EU system.

Therefore, Su Yi used the main hedge fund product "Hua Yi Cheng Yuan No. 1" to short the British pound exchange rate with all his strength. Even now that he has suffered huge losses, he has not reduced his positions to cover long orders to stop losses, or has exited the market on a large scale to stop losses. In the eyes of many people, he has gone too far and has lost his mind, just like a gambler who has lost his mind.

"What is the current position of the main short-selling fund 'Hua Yi Cheng Yuan No. 1'?"

Seeing that the pound exchange rate has returned to the 1.5240 mark, all the long orders of the hedge fund product "Huifeng Universe No. 1" that he manages in the pound exchange rate market have realized profits. At this time, in the trading room of the fund product trading department of "Huifeng Global Asset Management Universe No. 1" in Hong Kong City, hedge fund manager Godfrey asked.

Hearing Godfrey's question, trader Gerald responded, "According to market news, the current short positions in the pound exchange rate market have decreased significantly compared to last Friday, and the net long position continues to increase. At the same time, the short positions of the associated trading accounts of the fund 'Hua Yi Cheng Yuan No. 1', which is the main short position, seem to have not decreased, but increased a lot."

"Instead, it has increased a lot?" Godfrey thought he had heard it wrong.

Gerald nodded and continued, "According to the information we received from FXCM International, this institution is indeed continuing to increase its short positions."

"This is crazy." Godfrey said, "This Mr. Su from Huayi Capital is obviously a gambler!"

"It's really surprising." Gerald said, "Almost all the long positions in the market are waiting for this guy to close positions on a large scale. Unexpectedly... instead of reducing positions or closing positions to stop losses, this guy continues to increase his positions. He wants to recover his previous floating losses from the possible correction of the pound exchange rate by increasing positions at high levels."

"Hey, if he increases his holdings at a high level, once the pound exchange rate continues to break upward, his losses will increase exponentially." Godfrey said, "How much money does this guy have left to use?"

Gerald said: "According to market information, this guy's total liquidity should be around 5 to 6 million US dollars. Now, according to the information we have obtained, this guy's short position is nearly 1 million US dollars, and his floating loss is close to 2 million US dollars.

If you count it this way...

The current liquid funds that this person can use should be around $2 to $3 million.”

"2 to 3 million dollars?" Godfrey pondered for a moment and said, "That means there is a high probability that the pound exchange rate will break through 1.5500 or above. This guy is about to go bankrupt?"

Gerald said: "According to the market intelligence we have obtained, this is about the case."

"There is probably still a range of 300 basis points." Godfrey said, "It seems that Mr. Su can't escape the fate of liquidation. Continue to increase your position and go long. The pound exchange rate will definitely break through the 1.5500 level within a week, forcing Mr. Su to stop loss and close his positions on a large scale."

"Continue to open long positions using floating profits?" Gerald asked.

Godfrey nodded and said, "Yes, there is no reason not to continue to participate in such a good opportunity to squeeze out."

"Okay." Gerald nodded in response.

Then, he continued to direct the traders behind him to increase their long positions and follow other investors who were long in the market to squeeze out the big short position of the 'Hua Yi Cheng Yuan No. 1' hedge fund. At almost the same time...

While long institutions around the world continue to squeeze and go long on the pound exchange rate, and continue to release rumors to the market, affecting market sentiment.

Domestically, in the circle of hot money.

Many of the hot money investors who followed Su Yi to short the pound exchange rate last week are already feeling depressed.

"Fuck, the pound exchange rate can still go up. If it goes up further... Brother Su hasn't blown up his account yet, I'll have to blow up my account first."

Among them, Xu Qiao, who had invested a lot of money in the pound exchange rate market in the main hot money group of "Magic City Ultra Short Gang" where Su Yi was, couldn't help but complain.

"The trend of the pound sterling exchange rate is basically a one-way upward trend." Lao Zhang, who also suffered heavy losses, responded in the group, "Could it be that this time... Brother Su really made a wrong judgment?"

"With such a high leverage, once the position is held in the wrong direction, it is really unbearable." Xu Qiao continued, "I only opened a short position of 10 US dollars, and in a few days, I lost more than 20 US dollars, a double loss. This risk... is really not comparable to the stock market."

Lao Zhang nodded and said, "Indeed, I don't know how Brother Su can hold on with such a strong mentality."

"Brother Su's current positions have losses of more than $2 million, right?" Old Wu in the group also said at this time, "In the pound exchange rate market, these long institutions continue to force shorts. I feel that even if Brother Su has more funds, he may not be able to hold on and wait for the pound exchange rate trend to reverse."

"Alas, I don't see any hope of a reversal," Xu Qiao said. "I feel that the pound exchange rate will continue to break through 1.5500."

Lao Zhang continued, "Didn't the British cabinet just release a proposal for a 'referendum on Brexit'? And didn't they say that the Brexit process has already been initiated? These news should be bad news for the pound exchange rate. Why is the pound exchange rate moving in the opposite direction?"

Brother Chen responded: "The factors that affect the trend of currency exchange rates are far more numerous and complex than we think, and the players in this market are much more powerful than we think. Even major central banks will get involved. It is too difficult to truly grasp the trend of currency exchange rates. So... it is normal to make a wrong move and suffer losses. The trading risks in this market are inherently high."

"Brother Chen, do you not think highly of Brother Su?" Xu Qiao asked.

Brother Chen responded, "It's not that I'm pessimistic, but judging from the current situation, the situation Brother Su is facing is indeed very dangerous. And looking at the trend of the pound exchange rate, regardless of the market news and fundamentals, it is obvious that these long institutions in the market want to use their financial advantages to force Brother Su to liquidate his positions on a large scale, or to leave the market with a margin call."

"These institutional groups that use their financial advantages to force a short squeeze are fucking pieces of shit." Lao Zhang cursed.

Old Wu said: "The rules of the financial market are originally determined by capital. Everyone invests real money and operates according to their own understanding. It cannot be said that they are worthless. For example, when we operate in the stock market, don't we also use the advantage of capital to guide market sentiment and lure retail investors to follow suit and do more? These Western institutions are currently using this routine to harvest Brother Su."

"It's not just about harvesting Brother Su." Brother Chen responded, "It should be said that it is about harvesting all the shorts in the market. After all, the foreign exchange and futures markets are zero-sum games. In the entire pound exchange rate market, in addition to the large number of short positions held by Brother Su, there are also many short positions held by other funds. As long as these short positions can be covered and closed, further stimulating the rise in the pound exchange rate, these long institutions that squeeze out the shorts will be able to make a lot of money."

"The zero-sum game under high leverage is really thrilling at every step." Xu Qiao sighed.

Lao Zhang responded: "It's not just thrilling every step, it's a thrilling test of life and death every moment."

"However, due to Brother Su's call, many people in China turned to the foreign exchange market, and now they are all suffering heavy losses. This is probably a blow to Brother Su's reputation and word of mouth in China." Old Wu said, "Moreover, most people can't stand the stop loss after the loss, which will also increase the support of the longs in the market in disguise. I feel... Brother Su's current situation is really dangerous. Once the shorts in the market stop loss and cover, the upward speed of the pound sterling exchange rate will become faster and faster, and the short squeeze of these long institutions will become more and more fierce."

"The key point is that at this time, it would be difficult to withdraw even if we want to, right?" Xu Qiao said.

"I think he can admit his loss and leave," Brother Chen said. "But from what I know about Brother Su, he will never stop losing and close his position until the very end. Because the situation has developed to this point, it is not just a matter of $200 million in losses for Brother Su. It is also about the reputation of the entire Huayi Capital he runs, as well as its future development prospects."

"Indeed." Old Wu said, "Brother Su really risked everything in this battle."

"But after all this talk, we can't do anything about it at the moment," said Lao Zhang. "In the pound exchange rate market, the long and short positions are already at the million level. Our positions won't even make a splash, and won't have any impact at all."

"We can only rely on Brother Su himself." Brother Chen said, "I hope the market can turn around!"

Unfortunately……

Although everyone has good wishes, the market trend is becoming increasingly cruel.

After continuous fluctuations, on Tuesday, June 6, in the pound exchange rate market, net long positions continued to increase. At the same time, the pound exchange rate continued to break upward, surpassing the 7 point in one fell swoop, setting a new high in the exchange rate in nearly three months.

Moreover, long positions in the pound exchange rate market continue to increase.

Moreover, 90% of the institutions around the world are strongly bullish on the pound exchange rate, and they all believe that the probability of Brexit will be zero after the result of the "Brexit referendum" on June 6.

The Bank of England also began market operations again, selling a lot of US dollars.

After the Bank of England's open market operations.

The pound sterling exchange rate continued to advance upward, approaching the 24 mark in less than 1.5300 hours.

Faced with the continued rapid breakthrough of the pound sterling exchange rate.

The 'Hua Yi Cheng Yuan No. 1' hedge fund product managed by Su Yi suffered losses and was heading towards a loss of US$2.6 million.

At the same time, the available liquidity funds in his hands also decreased rapidly.

And at this time, when bulls were making huge profits and countless people were excited.

The posts that Su Yi published on domestic and foreign investor forums also attracted countless people's ridicule. Even many domestic investors who had followed his lead in shorting the pound exchange rate began to doubt him after suffering huge losses.

Almost in the blink of an eye.

The legend that Su Yi created and the image he established in the domestic stock market have also fallen into collapse.

Countless people began to question his investment ability.

Countless domestic and foreign institutions, as well as the capital that had been harvested by Su Yi in the financial market before, and many speculators who took advantage of the fire, also began to add insult to injury, either criticizing him in the real media or pouring into the pound exchange rate market to force long positions as opponents, hoping to share the leftovers of this long squeeze battle.

(End of this chapter)