super energy power

The futures department of Dahua Industrial Co., Ltd. has already made preparations, and when the order comes down, it will start closing positions at a fast speed. .

In the process of closing positions, the price difference that was expected to converge has a tendency to widen further. This is because many traders found that millions of barrels of crude oil that should have been shipped to New York were sent to London instead. This practice led to an increase in inventories in London delivery warehouses and a reduction in Cushing, further reducing prices in London and giving rise to prices in New York.

Taking advantage of this trend, Dahua Industrial almost pocketed all the profits from the contract for difference, and the total amount was as high as 52 billion US dollars, which far exceeded Qi Xiao's expectation.

In fact, it was a bit beyond Sioux City's expectations.

Seeing this entry, Qi Xiao, who was in a busy schedule, spent three extra seconds in a daze.The fourth sister, Xu Feng, who was far away in China, immediately called and asked Su Cheng, "There has suddenly been a huge sum of money in several accounts of our company...I counted it several times..."

"It's the company's profit. I'll talk about it when I get back." Su Cheng interrupted her with a smile.

"So many?"

"Yes."

"How did you do it?" Although the fourth sister, Xu Feng, did not come from a major, she is diligent and eager to learn. She is very suitable for a supervisory position in the financial department of Dahua Industrial. Most of the capital flow within the group is under her supervision. under.

It's not that Xu Feng has never seen billion-dollar funds, but this is the first time that he has earned billions of dollars at a time.

Su Cheng smiled wryly, and he didn't know how to explain, and said: "It's half luck and half preparation, and it's a bit beyond my imagination, but there are proper procedures. You can also contact the banks with several accounts to see if there is any interest. The paid fees will be handed over to them for processing.”

UOB's main overseas banks are all quite powerful large commercial banks, or local snakes with a strong background in the local area, and they are best at handling political relations.

The disadvantage of CFDs compared to pure futures contracts is that it has to pay handling fees to the two exchanges. However, the handling fees of futures exchanges have always been very small, because they are essentially clubs serving members and do not For the purpose of profit, although Dahua Industrial has earned billions of dollars, the handling fee it can pay is similar to those financial institutions that earn millions.

As for taxes, there are none at all. The U.S. government in 94 was discussing imposing taxes on futures exchanges to alleviate the current financial difficulties, but there was no result.Since Mrs. Thatcher's small political ax and privatization in London, it is even more difficult to increase new taxes.At present, the futures trading tax is mainly collected in Japan, Finland, France and Hong Kong.Among them, Japan is taxed at 0.05/5 of the closing price, Finland is taxed at [-]/[-] of the closing price, France is a fixed transaction tax of [-] francs per order, and Hong Kong is taxed at [-] francs per transaction. The Hong Kong dollar is different in the four regions, but in general, the futures tax is still a small tax. No matter what method is used to collect the tax, the total amount is very small and irrelevant.

In contrast, the fees for the merchants of the exchanges and the banks that provide leveraged funds are higher, but they are only in the millions of dollars.

Therefore, after deducting all the expenses, Dahua Industrial earned more than 52 billion US dollars in profits through CFDs, and there is still more than 52 billion US dollars left.

As for the Dahua Group, it was 100% controlled by Sioux City from the beginning to the end.

Taking this sum of money into his hands, Su Cheng felt much more at ease.

Qi Xiao was still full of enthusiasm, and said with chapped lips, "Su Dong, do we want to buy another contract that bets that the price difference will shrink?"

Gambling is full of surnames, but it is also a normal idea. When the spread widens to 2.2 US dollars, the reverse purchase of contracts with narrowed spreads has small risks and high profits.

After all, where can the price difference of $2.2 be expanded?Whether it is an increase in crude oil prices in London or a decrease in New York prices, the difference between the two will be narrowed.

If you go back to the $1 range, that's that much profit again.

Now, it is estimated that there are not a few financial institutions that do this kind of contract.

However, when Sioux City was studying petroleum finance, crude oil price difference contracts often exceeded 15 US dollars, and even exceeded 2.2 US dollars. The price difference of [-] US dollars really did not make him feel safe, so he resolutely refused: "It is enough to speculate once. Now we need to close out our short positions as soon as possible. What is the situation with Sumitomo Corporation?"

Qi Xiao was also relieved in the shock, adjusted his mood in a flash, and replied: "Sumitomo doesn't seem to be doing anything. The possibility of quietly selling long orders can't be said to be non-existent, but it's not too big. I'll ask someone to check the long and short positions just now." It's traded, and if Sumitomo reduces its position, we'll find out."

Of course, Sumitomo didn't take any action. Sumitomo Trading Company and his allies have fallen into a sluggish state.

Just as the Pan Asia Fund holds a heavy position in empty positions and cannot easily retreat, Sumitomo Corporation also holds a heavy position in long positions, so it is impossible to come and go on a trip.

What's more troublesome is that because Matsumoto received the support of the headquarters of the trading company, some affiliated companies attached to Sumitomo Trading Company, as well as allied companies such as Ito Trading Company, made heavy bets in the range of US$15 to US$16.

Of course, this is also due to their greed. They always feel that the price of crude oil at US$16 and US$15 is already low enough. The big deal is to wait until the delivery and ship it back to China... However, in the long-short exchange of US$3000 billion Among them, waiting for delivery is basically impossible.

From the average price of US$16 to US$17, Pan Asia Fund can earn US$10 billion to US$10 million every time it falls by 10 cents, which is equivalent to liberating a margin of US$150 billion to US$300 million, thereby prying up [-] billion US dollars again. $ to $[-] billion in funding.

In contrast, Sumitomo Corporation and their allies in various parties lost $10 billion to $10 million in guarantees for every 50 cents in crude oil prices they saw.When this number is reduced to [-] cents, Sumitomo Corporation will need to keep adding margins.

Otherwise, once the position is liquidated, all the long orders will be sold directly by the system, and no matter how much they sell, they don't even want a penny of the margin, which is tantamount to a huge loss, losing everything.

Therefore, in order to avoid liquidation, Sumitomo Trading Co., Ltd. will continue to invest more funds as margin.

And when the price of crude oil fell below $15, there were very few banks willing to give Sumitomo Corporation sufficient financial guarantees.

Sumitomo Trading Co., Ltd. itself is a financial trading company. In the initial stage, they can get a steady stream of financial support from the trading company, even if they suffer big losses.

However, when Sumitomo Corporation's bank funds were exhausted, there were very few banks willing to act as ATMs for them, and the amount was difficult to replenish.

This is the exact opposite of Pan Asia Fund.

On the one hand, the seven shareholders of the Pan-Asia Fund were fully prepared. It took several months and through various means to win over banks in many countries as financing support. On the other hand, and most importantly, the Pan-Asia Fund Always win.

Their margin is not getting less and less almost exhausted, but more and more continuously.

Therefore, the long-short battle of the London International Crude Oil Futures Exchange has progressed to the later stage, and it has basically become that the Pan-Asia Fund uses more than 15 times leverage to bet against the 10 times leverage of Sumitomo Corporation and other companies, and even [-] times leverage. The gap is self-evident.

This is a $3000 billion long-short bet. Even if it is leverage, a bank must be willing to provide it.Although Sumitomo Corporation has many assets, it does not have such a huge pool of funds.

Now, not to mention holding long orders until the delivery day, holding a huge amount of long orders overnight can scare the old men of Sumitomo's board of directors out of Alzheimer's.

Whether it is Sumitomo Corporation with assets of 3000 billion yuan, Ito Corporation with assets of [-] billion dollars, or soy sauce companies with assets of tens of billions of dollars, they also have business requirements of tens of billions, billions, and tens of billions of dollars in transactions every year. How could it be possible to put all the funds on the London Futures Exchange.

The directors are willing, but tens of thousands of employees in other departments are not willing; the employees are willing, and the Japanese Financial Services Agency and the Ministry of Finance are not; if the Japanese are willing, the British will probably laugh at Alzheimer. However, hundreds of billions of dollars have been added out of thin air, and they will not be realized until August, September, October, and November.

Such a large amount of money may help the UK boost its GDP by two points.

In the final analysis, such a huge futures transaction can only be empty-to-empty forever.

Waiting for delivery?Billions are fine, billions are fine, but it doesn't help.

Squeeze?It is possible in small caps such as agricultural products, but it is basically not feasible in crude oil futures transactions that account for one-half of the world.

Matsumoto kept guard in the office of the exchange all the time, holding a coffee cup in his hand, almost crushing it, but he didn't wait for the moment of rebound after all.

At 19 o'clock in the evening, the secretary reminded as usual: "The manual trading still has half an hour to close."

Michio Matsumoto raised his eyebrows, habitually looking at the big screen: 14:22.

Don't look at the two numbers at the back, the $14 in front makes him feel powerless.

"So much money has been invested... this guy Hirano." Matsumoto gritted his teeth.Since he came to London, the wonderful window period of 15 US dollars has ended. He just wanted to play a role, but he had no chance. He invested a lot of money, but there was no effect.

Although, he is not sure that he will be able to seize the wonderful $15 window period, but this does not mean that he will not complain about Hidetomo Hirano.

Especially before making a tough decision.

"Minister?" The secretary was worried that Matsumoto didn't hear clearly and wasted time. There is still half an hour before the manual trading is over. Unlike Pan Asia Fund, which signed three dealers in advance, Sumitomo Trading Co., Ltd. has always only had one dealer of its own. seats, the efficiency is relatively low.

The decision on whether to hold a heavy position for another night should be made in the next ten minutes or so.

Matsumoto couldn't help pulling his hair, and asked in a low voice, "Do the math, how much will you lose if you close the position now?"

To close a position is to leave the market, and there is no chance of making a profit.

If it is in a casino, it means not even looking at the hole cards and declaring "no follow".

The secretary has been with him for a while, so he doesn't need to count, and said: "The loss is more than 50 billion U.S. dollars."

The US$50 billion is one-sixth of the profit of the Pan Asia Fund, which seems relatively small in comparison, but if it is placed in a smaller bank, such as the famous Barings Bank, so much money is enough for them to go bankrupt.

Doo Matsumoto asked even more sensitively: "Are you sure it exceeds US$50 billion?"

"Yes."

"Will it exceed $60 billion?"

"This...can't be sure."

"Go and make sure." Matsumoto went to the doctor in a hurry.

The secretary was dumbfounded and stood still.How to confirm this, God knows what will happen if a huge amount of long positions are closed.

Michio Matsumoto also came to his senses very quickly, turned his head and said, "Tell Tanabe to make preparations to close the position."

Although the previous plan could not be realized, he did not want to become a "famous person".

60 billion US dollars will be on the list of huge losses of Japanese financial companies.

The secretary didn't fully understand, and reminded self-righteously: "Do you want to inform other trading companies?"

Matsumoto got up all of a sudden, and said, "Shut up. Go and inform Tanabe, don't tell anyone."

When escaping, how can you care about your allies.

How can the friendship between companies be measured in billions of dollars.

... (To be continued.)