Rebirth of the Capital Legend

Su Yi heard what Frederick said and replied with a smile: "In my strategic plan, this is not the perfect take-profit point. I think that in trading, the point of taking profit and stop loss has no direct relationship with the floating profit and floating loss of the position. It is more related to the changes in market trends and the formulation of trading strategies."

"I agree." Frederick nodded slightly and said, "Mr. Su's understanding of transactions is quite profound."

"Mr. Frederick, don't you plan to gradually close your profit positions at this position?" Su Yi paused and asked back.

Frederick replied with a smile: "Wait a little longer, just like what you said, Mr. Su... At this time, the expected referendum result has not been realized. Many speculators and investors in the market are still hoping that the referendum result can be reversed. They hope that after the voting results of many core regions are announced, the number of people who support staying in the EU will exceed the number of people who support leaving the EU again.

Since the potential selling force has not yet been fully released.

You can wait a little longer until the final momentum of the sell-off is released, and then gradually reduce your positions and take profits.

At this time, a unilateral short-selling trend has basically formed in the market. The funds for continued speculative short selling continue to increase, and the long funds for covering stop losses are also increasing.

In this situation, even if we hold a huge short position.

When the bearish trend is one-sided, it is very easy to quickly cover your position and exit the market to lock in profit.

So, naturally, there is no need to be too anxious. "

"Mr. Frederick has great self-control." Su Yi couldn't help but praise him after listening to his analysis. "He is indeed worthy of being called a great general. Under Mr. Frederick's leadership, the main hedge fund product 'Evolution No. 1' will surely achieve greater success in the future and become a world-renowned hedge fund product."

Frederick laughed and responded, "Thank you for the compliment, Mr. Su."

While the two were talking...

The pound sterling exchange rate has further fallen below the 1.3800 mark and dropped to around 1.3780.

At the same time, global investors and all the people around the world who are paying attention to the Brexit event are most concerned about the voting results of the core voting area, London, which has the greatest impact on the results of this referendum. At this moment, they are finally announced.

Just look at the voting results for the London region that were announced.

The number of people who support remaining in the EU accounts for 52%, while the number of people who support leaving the EU accounts for 48%.

Although overall, the majority of people supported remaining in the EU in the voting results in this important region, this result was still lower than the expectations of major institutions.

After all, before the results are announced...

Major mainstream institutions around the world have their expectations for the final voting results in London, the core voting area.

It was believed that in this voting area, the number of people supporting Remain in the EU could reach more than 60%, but now... let alone more than 60% support for Remain in the EU, there is not even 55% support for Remain in the EU.

Moreover, at the same time as the voting results in the core area of ​​London were announced.

The voting results in the two core voting areas of Leeds and Manchester were also announced in a timely manner.

The voting results in these two core areas were even worse than those in the London area in terms of support for remaining in the EU.

Even Manchester's support for remaining in the EU is below 50%.

This means that after the voting data from several core regions with the largest populations, such as London, Leeds, Manchester, etc., were released, the gap between the number of people supporting remaining in the EU and the number of people supporting leaving the EU did not narrow significantly during the entire referendum.

After the final vote count is completed in these major core voting areas.

The number of people who support Brexit is still more than 20 more than the number of people who support remaining in the EU.

This means that the expectations of those in the venue that after the voting results in core urban areas such as London, Manchester and Leeds were announced, the number of people supporting staying in the EU would exceed the number of people supporting leaving the EU, were completely dashed in an instant.

"Oh shit, another voting result that is far below expectations."

After seeing the voting results of several major core areas such as London, Leeds, Manchester, etc., many disappointed long-term speculative retail investors in the market expressed helplessness and emotion.

“The previous predictions of the vote count by major institutions were really outrageous.”

"How is it possible that the support rate for Remain is only 52%? Didn't all the major institutions generally expect the support rate for Remain to be above 60%? Damn... I've been tricked by the institutions again. Sigh... If the voting data of the major core voting areas cannot surpass the number of people who support Brexit after it is released, then there will be no hope for the number of people who support Remain to surpass the number of people who support Brexit in the future."

"Has the voting district that announced the voting results reached more than half?"

"There are still 176 that have not announced the final referendum results, but... most of the voting districts at the back were previously biased towards Brexit in institutional forecasts!"

"It's over, the bulls in the market are completely finished!"

"Cut your losses. The Brexit referendum is basically a foregone conclusion."

"No wonder many long institutions in the market, and even the Bank of England, are desperately trying to stop losses and reduce their long positions. Damn it... the news must have been leaked in advance!"

"Fuck! The institutions that were generally bullish on the pound exchange rate before really have no conscience."

"I closed my position with a stop loss. I lost 70% on the pound exchange rate this time."

"Alas, I should have cut my losses earlier and shouldn't have had any illusions. Otherwise, I wouldn't have lost so much."

Just as the confidence of countless speculative long retail investors in the market completely collapsed, the result of this round of referendum was expected to be completely biased towards Brexit.

The pound exchange rate changed after the voting results in core areas such as London, Leeds and Manchester were announced.

It also once again saw a sharp drop in volume.

It only took one minute.

The pound sterling exchange rate plummeted nearly 1.3780 points from the previous brief fluctuation around 400 points to around 1.3400 points.

And the pound sterling exchange rate once again plummeted rapidly.

The main fund product "Hua Yi Cheng Yuan No. 1" managed by Su Yi holds more than 40 short contracts on the British pound exchange rate.

The floating profit at this time has skyrocketed and exceeded the scale of 56 billion US dollars.

"Boss Su, our fund's floating profit has surged to about $56 billion," Qu Zecai, the fund's trading manager, quickly reported. "At the same time, after the voting data from core regions such as London, Leeds, and Manchester were released, the market's overall expectations have completely tilted toward the Brexit result."

"Yeah." Su Yi nodded slightly, "The confidence of the bulls in the market has finally collapsed completely."

"The pound has fallen more than 1500 points this morning from its opening high." Qu Zecai continued, "Isn't it time for us to take profits?"

Su Yi watched the pound exchange rate trend as the volume continued to explode and the bears were venting their anger. He was silent for a moment, nodded, and said, "Continue to close positions and gradually take profits and exit!"

With the one-sided market expectations, the last bit of momentum for selling has been triggered.

In other words, the situation of many killing many in the market is reaching its climax at this time.

Continuing on from this point in time...

The market's momentum of selling will gradually weaken.

By then, the situation in the market will be that a large number of short positions will be covering their profits, the negative news will come to fruition, and the exchange rate will turn into a weak rebound and repair after the momentum of the sell-off is exhausted.

So... now is the right time to take profits.

After receiving Su Yi's instructions, Qu Zecai nodded quickly and conveyed the corresponding trading instructions of gradually closing positions and taking profits to each group of traders in the trading room.

Just when Su Yi issued the trading instructions to gradually take profits.

Almost at the same time, several major institutional trading departments in Hong Kong, including Mitsui Yoshitomo Investment Company, Tianhe Capital, and Huifeng Global No. 1 Main Hedge Fund.

However, they are all carrying out the unified operation of clearing positions and stopping losses.

Moreover, each of these three institutions suffered losses of more than 10 billion US dollars on the pound exchange rate this time.

Among them, the institution holding the most long orders on the British pound exchange rate, 'Huifeng Global No. 1 Main Hedge Fund', had a total loss of more than 30 billion US dollars.

A loss of $30 billion...

This made Godfrey, who was in charge of the main hedge fund "Huifeng Huanyu No. 1", so angry that he almost vomited blood.

Even with his qualifications, he would not be able to explain a loss of this magnitude to the group or even to the investors.

Of course, it is not just these three major institutions that are clearing their positions and stopping losses at this moment. Almost all long institutions in the world are stopping losses on their last long positions after expectations become clear.

"Fortunately, we immediately switched from long to short. This trend... is really terrible."

Seeing that all the bulls in the market had collapsed, the situation of longs killing longs was too tragic to watch. At this time, late at night in London, Alex, head of the fund market research department of the hedge fund trading department of Barclays Investment Bank's Lion International, sighed with fear in his heart.

"Yes, we avoided a huge loss." Fund manager Claude said with a smile.

"The results of this referendum are completely opposite to what the major institutions expected," Alex said. "This is truly the biggest 'black swan' event of the 21st century."

"Fortunately we avoided it." Claude said.

Alex smiled and said, "Not only did we avoid it, we also made more than a billion dollars in profits from this 'black swan' event. I estimate that after this investment is completed, the entire hedge fund investment business department of our group will be handed over to you for management."

"I haven't thought about it that much." Claude laughed, "I'm just managing this fund product out of a responsible attitude towards investors."

"I heard that in this referendum, our central bank also established hundreds of thousands of long positions in the secondary market in order to maintain the pound exchange rate." Alex said, "With the complete collapse of the pound exchange rate, I'm afraid the central bank's losses are also extremely heavy!"

"The central bank should have stopped losses before market expectations turned to consensus," Claude said. "However, in this round of referendum, millions of long positions concentrated in the market were harvested by short sellers, and the major long institutional groups around the world did suffer heavy losses."

"Many of these are local institutions in our country!" said Alex.

Claude nodded slightly and responded, "That's true. Due to the general over-optimism before, many financial institutions in our country did not make sufficient risk assessments for this referendum and rashly entered the market to go long, resulting in a large number of long positions being harvested by short sellers in the market. From this perspective... if the final result of this referendum is Brexit, what our country will lose is not only the EU economic system, but also the huge amount of funds invested in the financial market to go long."

"Yes," Alex said, "The people's choice will cause unpredictable losses to our country's economy and finance."

"But the result is basically certain now." Claude said, "There is nothing we can do."

"Sigh..." Thinking of this, Alex couldn't help but sigh heavily again.

And as he sighed...

The pound sterling exchange rate has broken through 1.3270 in a series of sharp declines, setting a new 1975-year low since 40.

And also at this moment.

The wealth of countless long-term capital institutions around the world has evaporated.

There was a huge amount of long trading in the market, and countless speculators and investment traders who held long positions suffered margin calls.

“The moment of the avalanche was so beautiful!”

Seeing that the British pound exchange rate has not stopped falling after breaking through a 40-year low, at this time in Shanghai, Su Yi is in the main hot money group of the Shanghai Ultra Short Gang.

Xu Qiao, who has already earned more than 200 million US dollars and tens of millions of Chinese yuan in profits, said excitedly.

"I never thought that the final referendum result would really be towards Brexit." Old Wu smiled and sighed, "This time, Brother Su bet all his capital on this referendum and shorted the pound exchange rate on a large scale. He really won the bet again. Brother Su's courage... I really envy him from the bottom of my heart!"

"Indeed." Lao Zhang responded at the right time, "I wonder how much Brother Su made this time?"

Brother Chen responded: "Based on the short positions announced by the main fund 'Hua Yi Cheng Yuan No. 1' managed by Brother Su, if there is no early closing of positions to stop profits, the profit should be at least 100 billion Chinese yuan by now."

"Holy crap, a profit of 100 billion?" Old Zhang smacked his lips. "That's really scary!"

"Brother Chen said at least 100 billion, so it must be more than 100 billion." Xu Qiao said, "After this battle, Brother Su is truly famous in the domestic financial world."

"It's not just the domestic financial sector," said Old Wu. "It's the first time in history that our country's capital has made such a huge profit by investing overseas."

"The key is... the source of funds for the hedge fund product 'Hua Yi Cheng Yuan No. 1' seems to be basically Brother Su's own funds, right?" Lao Zhang said, "After this battle, Brother Su's personal wealth is probably going to be in the tens of billions. He will definitely be ranked high on the domestic rich list."

"Need I say that?" Xu Qiao said with a smile, "Brother Su went back to Shanghai to raise funds before. Those bosses who rejected him must be regretting it now."

"Haha...it's time for them to regret." Old Zhang laughed.

As several people discussed...

When the pound sterling exchange rate hit a 40-year low, it was confirmed that the Huayi Capital, headed by Su Yi, would make a fortune in this round of short-selling investment in the pound sterling exchange rate.

In Shanghai and Hong Kong, there are many people who have connections with the institution "Hua Yi Capital".

Emotions are also affected.

They all began to pay close attention to Huayi Capital and Su Yi's next move. (End of this chapter)