Rebirth of the Capital Legend

"Mr. Godfrey... I also think we should continue to close our positions to stop losses and further reduce our long positions in the pound." Ernest's voice had just fallen when Gerald, the head of the trading team, said hurriedly in the trading room, "The current rapid rebound in the pound exchange rate is just a technical rebound caused by short covering, not a trend reversal caused by news or fundamentals.

Once the short positions are covered with profit taking measures.

At the same time, the voting results in various districts are further inclined to support Brexit.

Then, I am afraid that the pound sterling exchange rate will face an even more tragic plunge.

Although there are still more than 200 polling districts that have not announced the final referendum results, the gap of 20 people is difficult to make up.

Mr. Ernest is right. We cannot gamble on low-probability events in such extremely volatile market trends.

Moreover, based on the previous two times when the pound exchange rate plummeted.

We found that under this kind of unconnected market trend, it was impossible for us to cover our positions in a concentrated manner at the market price.

Therefore, if we miss this good opportunity to close and cover our positions.

The subsequent market trend took another sharp turn downward, and I am afraid that our fund will not even be able to stop loss and close positions. "

"Okay!" Seeing Ernest and Gerald both saying so, Godfrey thought that he should decisively reduce his positions and close his positions to stop losses. After hesitating for a while, he finally nodded and said, "Then let's do as you said and close the positions and stop losses accordingly."

The entire fund lost more than $20 billion in this round of long-term pound exchange rate strategy.

Such a huge loss.

It was the biggest loss in his career and also the biggest blow to his confidence.

However, after hesitating, he actually made the decision to close the position and stop the loss, his originally extremely stressed and tormented mood actually calmed down significantly.

And, involuntarily...

In his mind, the image of the young man who he thought was ignorant and openly provoked him at the Huifeng Offline Investment Strategy Conference began to flash through his mind.

It was not until this moment that he suddenly discovered.

It seems that the other party's provocation was intended to lure him into the game and make him go long on the pound exchange rate.

As Godfrey was thinking, Gerald turned around without any hesitation and issued trading instructions to the traders to close their positions and stop losses.

And when the corresponding transaction instructions are issued.

When a large number of long orders from the main fund "Huifeng Huanyu No. 1" fell on the pound exchange rate market.

The pound sterling exchange rate, which had been rising vigorously and continuously breaking through the rebound, suddenly stagnated and instantly slipped from the 1.4300 point line to around 1.4260 points.

However, it is different from the instant stop loss correction of the main fund trading department of 'Huifeng Huanyu No. 1'.

Europe, England, London at this moment.

The headquarters of Pacific Capital Group, which is also a major long-term institution in the market, and Yabuk, the group's main hedge fund product manager, are still increasing their positions in the opposite direction and firmly believe that the result of this referendum will definitely lean towards a referendum supporting staying in the EU.

As for UBS International and Barclays Bank, both based in London, they had already turned from long to short before the referendum day.

The main hedge fund trading departments of these two institutions.

Both Andrea and Claude were continuously adding short positions in the British pound exchange rate, preparing to make up for the losses caused by their previous long positions.

In addition to the bullish institutions in the market such as Japanese capital, Hong Kong capital and European capital.

Wall Street at this time.

Previously, it was within the institution "Leading Capital", which had been aggressively long on the British pound exchange rate and held hundreds of thousands of long positions in the British pound exchange rate.

Cedric, the fund manager of 'Amanda Hedge Fund' trading department, comprehensively assessed the risks of his positions and the probability that the referendum results would eventually be reversed.

Finally, he gritted his teeth and ignored the huge floating loss of more than 22 billion US dollars in the fund account.

Decisive decision was made to cut positions and cover losses.

And at this moment, all kinds of long capitals and major long institutions in the market are basically reducing their positions to stop losses when prices rise, or concentrating on closing their positions to stop losses.

There are a large number of retail investors in the market.

The pound sterling exchange rate rebounded due to a large amount of short covering in the market.

However, they still hold the view that the referendum result may be reversed and that it may be profitable to buy at the bottom, so they buy at the bottom on a large scale, continue to take over the market, and continue to open long positions in the pound exchange rate.

As the main forces of the entire market, including long and short parties, as well as countless capital institutions, retail investors, and hot money groups around the world.

Common focus objects.

At this time, the Bank of England, including the Bank of England's Foreign Exchange Markets Department, passed an emergency Monetary Committee resolution.

A group of leaders had no choice but to give up the previous support plan and cut the large number of long positions they had established before. They were ready to let the pound exchange rate fall freely during the announcement of the referendum results, and then enter the support market to maintain the pound exchange rate after completely clearing out both long and short positions.

After all, at this time, market sentiment is completely biased towards the short side.

Insist on going long to maintain the stability of the pound sterling exchange rate.

It is too expensive and a waste of money. Of course, the most fundamental reason why everyone gave up the previous pallet strategy is that under this kind of sentiment and market situation, no matter how much money is invested to maintain the exchange rate trend and to take over the market, it will not play a big role. They cannot eat up all the short orders in the market.

It is also impossible to hedge all short-selling forces in the market by relying solely on US dollar foreign exchange reserves.

What's more, compared with the central banks of other major countries.

Their central bank's foreign exchange reserves in US dollars are not abundant. If they easily play this trump card at this time, the subsequent short selling of the pound by Wall Street capital will appear more unscrupulous, and the pound exchange rate trend after the referendum will face a more tragic situation.

By that time...

What may be affected is not just the exchange rate, but also the foreign exchange market results.

It can be said that the entire British national economy, all financial institutions within the UK, and national wealth will be looted by countless short-selling capitals and will face immeasurable losses.

Therefore, after the trump card is played, extreme systemic financial risks are very likely to occur.

After careful consideration, the main leaders of the Bank of England finally made the decision to completely abandon the pound sterling exchange rate at this time.

However, the Bank of England's intervention measures at this time were lower than market expectations, as well as its decision to abandon its overall strategy.

This directly led to the fact that as market trading time went on, more and more long-term major institutions in the global capital field began to lose confidence and quickly cut their positions to cover their losses.

"Boss Su, the long and short positions in the market have been reduced by nearly 50 orders within half an hour."

Noting that a lot of the open long and short positions in the market have been covered, and also noting that the pound exchange rate seems to be difficult to break through the 1.4300 point mark, at this time in Hong Kong, inside Huayi Capital Company, in the main fund trading room of "Huayi Chengyuan No. 1", fund trading manager Qu Zecai quickly reported.

Su Yi nodded slightly and responded: "The open long and short positions are all decreasing significantly, which shows that the short and long covering in the market are very strong, which is expected."

"A large amount of short-term short-selling capital and speculative short-term short-selling funds should have completed a lot of profit-taking operations in the past half an hour." Qu Zecai paused and continued, "And the main long positions in the market are estimated to have also stopped losses and cut positions a lot."

"Yeah." Su Yi nodded slightly, then turned his gaze to Frederick, who was in contact with his own organization on the instant messaging interface, and asked, "Mr. Frederick, is there any important latest news from the UK and Wall Street?"

In terms of market intelligence and information channel acquisition.

As a newly established institution, they cannot be compared with global capital giants such as Aberdeen Asset Management.

So, after the two major institutions carried out coordinated operations.

To get the latest market news, Su Yi always asks Frederick.

Frederick chuckled and responded, "The referendum results of each district were announced live on television networks, which counted and broadcast the results in real time. So our agency is not much ahead of Mr. Su in this regard. As for the Bank of England, no more news has been leaked yet. However, Wall Street is making more and more moves. Just now, the 'Amanda Hedge Fund' of 'Vanguard Capital' has carried out a centralized position closing and stop loss operation."

"We can't let these big institutions in the market stop losses and leave safely." Su Yi heard the news about 'Wall Street' that Frederick said, and said hurriedly, "As long as the bulls are alive, the bears will not stop. These main long institutions holding huge long orders are a potential huge short-selling force in the current situation.

In order to further seize huge profits in the market, and in order to enable these main bullish institutional groups to create greater profit margins for us.

We can't let them leave safely in this position.

At present, it seems that the short-term bearish groups in the market have almost taken profits.

In addition, market news, especially the referendum data in various regions, continue to support Brexit, which provides us with enough motivation to continue shorting and the motivation for the pound exchange rate to continue to fall..."

Hearing Su Yi's words, Frederick didn't wait for Su Yi to finish, and hurriedly said in surprise: "From what Mr. Su said... do you want to continue shorting on a large scale?"

"That's exactly what I mean." Su Yi's eyes flashed with a sharp edge, "Mr. Frederick, you shouldn't be satisfied with just a profit of more than 20 billion US dollars, right? If this battle... can take away more than billion US dollars in profits from the pound exchange rate market, I believe that today's battle will become the most brilliant investment record and the most glorious moment in Mr. Frederick's career."

“Profits in the tens of billions of dollars?”

When Frederick heard this number, he was still shocked even though he thought he had seen big storms before.

Su Yi nodded with a smile and said, "If we use the profits to continue to invest large amounts of money in short selling, with the help of the already fragile bullish nerves of the market, the basically one-sided bearish sentiment, and the continuously expanding number of people supporting Brexit, I think it is not impossible for us to achieve this result."

"No, Mr. Su... Didn't you say before that using floating profits to increase positions is an extremely dangerous behavior in foreign exchange transactions?" Hearing the conversation between the two, Meng Shengfei, who only had one-third of his short positions left, said hurriedly, "Why are you proposing such an extremely dangerous strategy now?"

Su Yi replied: "This kind of trading behavior of using floating profits to increase positions is indeed very dangerous in foreign exchange trading, but in the face of a great opportunity, especially when we have already taken the initiative in the market, I think this dangerous behavior is still worth a gamble."

"Using more than 20 billion US dollars in profits to gamble on the uncertain results of the follow-up?" Meng Shengfei thought Su Yi was really crazy.

Su Yi smiled and said, "The Brexit referendum in the UK is not only a gamble for us, but also for the country itself and the many long and short capital giants involved in this round of the pound exchange rate market. Since it is a gamble, when the winning rate is on my side, there is nothing I dare not bet on."

"Haha..." Frederick couldn't help but burst into laughter when he heard this, and said, "Mr. Su's vision is really admirable. Okay... I'll bet with you on this one."

After saying that, Frederick was ready to immediately let the various trading groups in the trading room.

Taking advantage of the huge amount of unrealized profits in the account, he continued to short the British pound exchange rate.

Su Yi's eyes were sharp. He scanned the trend of the pound exchange rate, which had lost its momentum of rebounding and was falling again. He said hurriedly, "In addition to continuing to invest huge amounts of money in short selling and suppressing the market, I also need Mr. Frederick to use the influence of your Aberdeen Asset Management and Mr. Frederick's connections on Wall Street to publicly publicize the news that the Bank of England has abandoned the pound exchange rate to the market."

"Haha, great!" Frederick replied, "Mr. Su's strategy is really ruthless. The market trend and news are coordinated with each other, and the news of 'the Bank of England abandoning the exchange rate' is used to completely destroy the underlying logic and confidence of the market's long position, so that the bulls in the market will really have no hope.

As long as the subsequent referendum results data from polling areas can ensure that the number of people supporting Brexit continues to maintain a corresponding advantage.

So, the nearly 300 million long positions trapped in the market have nowhere to escape, and can only scramble to stop losses, or even face the fate of liquidation. "

Su Yi smiled and said, "We have to make the bulls in the market completely desperate and cause a tragic self-trampling. Only in this way... can we form a more extreme market trend for the pound exchange rate, and only in this way can we grab more lucrative profits in the market. Today... many people and many major institutions that are long are destined to go bankrupt!" (End of this chapter)