Rebirth of the Capital Legend

Faced with the sudden and continued flash collapse of the pound sterling exchange rate, the long and short trading volumes in the market once again broke out.

Countless speculative long position holders reduced their positions and stopped losses at a rapid pace, while the huge number of speculative short position holders continued to invest large amounts of funds to force the liquidation.

"Mr. Godfrey, this trend is wrong. It's absolutely wrong."

Noticing that the pound exchange rate was already in jeopardy at the 1.4500 mark, in Hong Kong, in the trading room of Huifeng Global Asset Management's Universe No. 1 main hedge fund, Gerald, the head of the trading team, felt his heart in his throat. He nervously held the keyboard, slid the mouse to the button option for one-click closing of the trading account, and quickly reported to Godfrey.

At this moment, Godfrey was staring at the trend of the pound exchange rate, and the expression on his face was extremely ugly.

The final voting results of the Swindon polling district, as well as Northamptonshire, Southampton and South Tyneside, which were announced one after another, were almost all lower than the expectations of global institutions when the votes were first counted, and the number of people supporting Brexit completely exceeded previous market forecasts.

This has caused the bullish and bearish sentiments in the market to completely tilt towards the bearish direction.

And in an instant...

As a result, the floating loss of the main fund product he was in charge of expanded to nearly US$8 million.

This huge loss has never happened since he took charge of the main fund product "Huifeng Huanyu No. 1".

However, what is more critical is that the flash crash in the market trend has completely deprived them of the opportunity to calmly reduce their positions, close their positions and cover their positions to control their losses.

"Mr. Godfrey, the market sentiment has completely turned to the short side. Now that the result of Brexit has not been finalized, and while there are still some long positions on the market..." Ernest, the head of the market research department of the asset management business, also urgently proposed at this time, "Why don't we concentrate our stops on a large scale here? It's still in time to stop losses now. If we hesitate any longer, as more referendum voting districts announce the results, as more and more referendum voting districts lean towards Brexit, the pound exchange rate will continue to plummet, and the long position support will weaken rapidly again. Then... I'm afraid we won't be able to complete the concentrated stops quickly."

At this moment, even though the pound exchange rate has fallen to the 1.4500 level.

It was down nearly 400 points from before the referendum polling stations opened the votes.

However, the amount of unclosed long positions accumulated in the market is still as high as 400 million lots.

This means that there are still too many long-position funds in the market, who have not covered their positions and have not had time to stop losses and retreat.

If the subsequent market conditions continue to move in the direction of bearish expectations.

If the huge group of long position funds in this market further concentrates on covering their positions and stopping losses.

Then, it is easy to foresee that there will be an extreme bull stampede in the pound exchange rate market that is even more serious than it is now.

A more tragic situation of more killings will definitely occur.

What's more, when a large number of bulls' confidence collapsed and they all covered their stop losses.

There is also continued short-selling capital and countless new groups of short-selling speculators entering the market, who are increasing their short positions on a large scale, continuing to suppress the market trend.

That is to say, if the number of people who support Brexit is announced in the subsequent referendum voting district results.

There was no decisive turning point.

The current level of the pound exchange rate can never be the end of this round of decline.

While Ernest was speaking, the pound sterling exchange rate had already broken through the 1.4500 mark without any hindrance in the fierce trading, and continued to plunge more than 50 points rapidly, falling straight to around 1.4445 points, once again setting a new low in nearly three months and a new low in three years.

At the same time, when the pound exchange rate hits this point...

A large number of long institutions whose holding costs of long positions in the market are above 1.5000 points, especially those with insufficient reserve funds or whose positions are too high, have begun to face the situation of margin calls.

"Mr. Godfrey, our fund's floating loss is about to exceed $9 million." Gerald continued to report urgently, "Based on the number of short positions we currently hold, we are only less than 300 points away from the forced stop loss and liquidation line set by the system."

Godfrey was silent for a moment when he heard Gerald's words.

He gritted his teeth and kept his eyes on the trend of the pound exchange rate. He was silent for about half a minute before turning his gaze to Jeremy, the head of the company's intelligence department, and asked, "Is there any latest important news from the Bank of England? And what about the voting results in the more important core areas such as London, Manchester, Leeds, Glasgow, etc. What are the latest results? Can we know in advance?"

Jeremy quickly replied: "There is no latest important news from the Bank of England. It seems that the Bank of England and the Central Bank Committee have given up the original plan to strongly support the pound exchange rate and also gave up the plan to attack Wall Street short capital on the pound exchange rate.

As for the voting results in core areas such as London, Manchester, Leeds, Glasgow, etc.

We currently have no way of knowing in advance.

After all, this is a live public vote count, and all voting areas count and announce the votes independently. The relevant counting results are synchronized around the world and cannot be revealed to us in advance.

Based on the large number of voters in the region.

It is estimated that the voting results of these core regions, which are of the greatest concern to everyone, will be announced at 9:30 a.m., or after 10 a.m., Yanjing time."

"The Bank of England has abandoned its original strategic plan?" Godfrey was shocked, his head buzzing. It was unbelievable and he couldn't help cursing, "These guys are just like UBS back then. They fled at the last minute. They have no vision and no credibility at all."

"Mr. Godfrey, we have to make a decision as soon as possible!" Ernest urged hurriedly.

"The lead of 80,000 people is actually very small in the population of 50 to 60 million." Godfrey gritted his teeth and said, "As the vote count results of the major core regions are announced, there is still a high probability that the number of people supporting staying in the EU will surpass us."

"We can't rule out this possibility," Ernest said, "but we don't have time, and we don't have the margin for error. Once the pound sterling continues to drop by more than 300 points, even if the final referendum result can be reversed, after our fund is fully liquidated and stopped, it will have nothing to do with us.

Therefore, no matter what the subsequent vote counting results in the core areas will be.

At this time, we must focus on reducing positions and covering positions to reduce the risk of holding positions and increase our tolerance rate. "

"Alas..." Hearing Ernest's voice, Godfrey could only sigh helplessly, even though he was unwilling in his heart. He ordered all trading teams to immediately reduce one-third of their long positions, reduce the extreme risk of concentrated positions, and increase the fund's reserve capital flow to prevent the risk of sudden liquidation of the fund caused by another flash crash of the pound exchange rate. "At this position, we are forced to stop loss and close the positions. What a pity."

Unconsciously, he couldn't help but swear.

Ernest finally breathed a sigh of relief after hearing Godfrey's final decision and seeing the pound exchange rate had fallen to around 1.4430. Gerald did not dare to hesitate at all.

One-third of the long positions in the account were quickly closed at the market price, and the relevant trading instructions were also conveyed to the remaining traders.

Just when Godfrey had no choice but to make a partial position covering and stop loss operation on the main hedge fund "One World No. 1".

The two investment managers, Sato and Gu Chijiang, who were originally linked with the main hedge fund 'Universe No. 1' on the pound exchange rate, 'Mitsui Yoshitomo Hong Kong City Investment Company' and 'Tianhe Capital', are now looking at their fund trading accounts that have suffered extremely serious losses, and their confidence in going long has collapsed across the board.

As the pound sterling exchange rate continued to fall, Gu Chijiang reduced his positions and stopped losses all the way, but the losses in his trading account continued to expand, causing his belief in going long on the pound sterling exchange rate to completely collapse.

As for Sato...

At this moment, apart from the forced stop-loss reduction and covering operations, there was only despair on his face.

The main fund product he is in charge of has already lost more than $5 million in the pound exchange rate market.

A loss of this level basically spells the end of his career.

Of course, in addition to the confidence in holding positions, the confidence in going long has collapsed among several major long institutions such as 'Huifeng Huanyu No. 1', 'Mitsui Jiayou Hong Kong City Investment Co., Ltd.', and 'Tianhe Capital'.

Worldwide...

There were previously heavy long positions on Wall Street and a number of European long positions.

For example, the confidence of major global long-term institutional groups such as the United States' Vanguard Capital, the United Kingdom's Pacific Capital, and BNP Paribas Investment Bank in their holdings and going long are collapsing at this moment. Fund managers within each institution who realize that something is wrong are also continuing to reduce their positions and stop losses.

The concentrated reduction of long positions and stop-loss covering of capital, as well as the concentrated influx of speculative short-selling funds.

As a result, when the pound exchange rate fell to 1.4400 points, the open long positions in the market quickly dropped to more than 390 million lots, while the open short positions climbed to around 520 million lots.

As the number of net positions in the market increases, the overall situation is biased towards short positions.

As bulls panic and stampede.

As the core main long institution in the market.

The managers of relevant main fund products within institutions such as Citibank, BNY Mellon, Goldman Sachs, Blackstone, Aberdeen Asset Management, Huayin International, Huayi Capital, as well as the numerous traders in various trading groups participating in this round of transactions.

At this moment, I feel extremely excited and thrilled.

Among them, Humphrey, the foreign exchange hedge fund manager of Blackstone Group, made an international call at around 8:1 p.m. American time at this extremely tense moment in the market, and informed Frederick, the main fund product manager of Aberdeen Asset Management Evolution , of his joy.

"My old friend, your strategy for shorting the pound this time is truly perfect." Humphrey laughed over the phone. "At this moment, my institution's floating profit has reached $4.8 million, and I can conclude that this is not the end, but only the beginning."

Frederick received Humphrey's call and responded with a smile: "Congratulations. It is not something that ordinary people can do to see through the nature of the market and turn from long to short at the critical moment."

"Haha..." Humphrey continued to laugh and said, "It's all thanks to your reminder. I'm afraid your organization has made a lot of money this time. When you return to the New York headquarters, I will treat you to a meal."

"Fortunately, the current floating profit is more than 19 billion US dollars." Frederick smiled and said.

"Fuck..." Humphrey was shocked when he heard the number Frederick reported. "You are really willing to use ruthless force. It seems that your shocking battle will completely shake Wall Street."

Frederick smiled and said, "In fact, I was not the first person to discover this huge opportunity for short-selling speculation in the pound exchange rate market. I just copied someone's homework. The real initiator of this round of long-short battle in the pound exchange rate market should be Mr. Su Yi, the manager of the Chinese-funded institution 'Hua Yi Capital', the main hedge fund product manager of 'Hua Yi Cheng Yuan No. 1'."

"Hua Yi Capital?" Humphrey was stunned for a moment, then replied, "I haven't heard much about it, and... who is Su Yi?"

Frederick said: "It's normal that you haven't heard of it, but... after this round of British referendum, this institution will probably become famous in the international financial circle."

As the two of them talked...

The market has announced the final voting results of several voting districts in succession.

What continues to be surprising is that the voting results of several polling districts that have been announced one after another still tend to support Brexit, and as soon as the data from these districts were released.

This directly led to the number of people supporting Brexit further exceeding the number of people supporting remaining in the EU.

Moreover, the gap in the number of people between the two has widened to more than 10.

Faced with such a result, the exchange rate of the pound sterling has basically continued to fall without stopping, breaking through the two defense lines of 1.4400 and 1.4350.

In an instant, it continued to set a new low of 1.4339 points.

At this moment, the pound exchange rate fell to 1.4339.

The main fund product "Hua Yi Cheng Yuan No. 1" managed by Su Yi has a short position of up to 30 lots, and the total floating profit has just exceeded the 15 billion US dollar mark, completing the goal of doubling the profit of all invested capital and achieving the investment goal of billion Chinese yuan.

Facing the day's floating profit figure in the fund summary account on the main computer.

Su Yi was able to remain calm and composed.

Qu Zecai, the manager of the trading team, was so shocked that his jaw dropped. He was in a state of extreme excitement.

At the same time, off-site, Hong Kong City's 'Aberdeen Asset' company venture capital department.

Fang Wanqing, who was at work, stared at the pound exchange rate, which had completely formed a long-killing-long situation and a unilateral short trend. She was also extremely excited, with a smile on her face. (End of this chapter)