We agreed not to date, so why are you crying now that I've become the richest man?
Chapter 134 Knowing the answer is called picking up money.
In mid-September 2010, the global commodity market was in a strange period of calm.
Cotton futures prices fluctuated between 80 and 90 cents per pound for a long time.
The market is flooded with research reports on supply and demand balance.
No one anticipated that a massive global cotton short squeeze would unfold in the next three months.
India's export restrictions, Pakistan's floods, and natural disasters in mainland China—a series of negative news items will push cotton prices to a historic high of over 200 cents.
A more than 100% increase in spot prices means countless stories of overnight riches in the futures market.
"Mr. Ye, the contract has been retrieved."
Li Zhiwei had his hands on the keyboard, and he was in a highly focused state of work.
"Spread all funds out and gradually absorb the sell orders on the order book. Go all in on long positions." Ye Chen's voice came from behind.
Li Zhiwei opened the trading panel.
"Mr. Ye, should we go for a medium- to long-term investment or a short-term one?"
Regarding risk control, what percentage of the portfolio should be allocated to margin? Should we use 5x leverage or 10x leverage?
In the foreign exchange and futures markets, leverage mechanisms, with five times leverage being a standard practice for institutions, can both amplify returns and mitigate certain downside risks.
Ye Chen picked up the glass on the table and took a sip of water.
"One hundred times."
These three words landed.
Li Zhiwei's hand on the keyboard jerked violently, knocking the mouse over with the back of his hand.
He jumped up from the chair in a flash.
Her face, which had initially held a hint of ingratiation, instantly turned deathly pale, and even her breathing became erratic.
"Ye Sheng! This is impossible!"
Li Zhiwei disregarded workplace etiquette and raised his voice several octaves.
"A full-position long position of ten million US dollars, with a leverage of 100 times?"
"Even a tiny one percent pullback in the market could wipe out our margin instantly!"
"There's no chance to even average down; the system will force liquidation, leaving nothing behind!"
Li Zhiwei's mind was buzzing.
This isn't investing, it's pure suicide! A one percent pullback isn't even a sneeze in the futures market!
Ah Cheng and Ah Ken, who were standing nearby, were also terrified and turned pale.
The two withdrew their hands from the keyboard, no longer daring to look at the screen.
They thought they had encountered a dragon crossing the river, but it turned out to be a crazy rich second-generation who took his family's money and came out to seek excitement!
Putting ten million US dollars all on tables of all sizes is just absurd.
"Mr. Ye, this operation violates risk control guidelines. We will be held responsible if something goes wrong." Acheng stammered and took half a step back.
Ye Chen placed the glass on the table with a soft sound.
He didn't get angry, nor did he explain any theories about macroeconomics or supply-demand imbalances.
With long strides, Ye Chen walked up behind Li Zhiwei.
He placed both hands directly on Li Zhiwei's shoulders, forcefully pushing him back into the chair.
"I'm paying for your time, not your brains."
Ye Chen rested his hands on the back of the chair, quietly watching the three of them.
"Do as I say."
"If you get liquidated, it's on me."
His tone was calm, yet every word struck the hearts of the three men.
"If you can't even manage a few keystrokes, you can leave right now."
"There are plenty of traders downstairs in Central who need to work, and I can replace them with a new batch of people willing to listen to me within ten minutes."
Li Zhiwei swallowed hard; his back was soaked with cold sweat.
The two younger men next to them were even more trembling.
This job pays twice the market rate as a base salary, and marginalized people like them simply can't find a better job.
Li Zhiwei gritted his teeth.
The boss has put it this way; to resist would be to ruin one's own livelihood. After all, it's just a test with other people's money; at worst, one can watch that ten million vanish into thin air.
"clear."
Li Zhiwei gripped the mouse again, his voice trembling.
"Acheng, Ken, open the 100x leverage interface, split the orders, and go all in on long positions!"
The crackling sound started again, this time much faster than before.
The sound of keyboard typing became the only noise in the room.
The massive sum of tens of millions of US dollars, amplified by a hundredfold leverage, transformed into a capital behemoth with a market value of one billion US dollars, silently infiltrating the deep waters of NYBOT cotton futures.
The scattered orders on the order book were being swallowed up one by one.
The average price is locked at 85 cents per pound.
All positions have been established.
Due to exorbitant fees and spreads, the floating profit and loss indicator in the upper right corner of the account page displayed a shocking green negative number, indicating losses of up to hundreds of thousands of US dollars.
Li Zhiwei slumped in his chair, feeling as if he had just escaped death.
Ye Chen walked to the floor-to-ceiling window.
Outside the window, the dazzling lights of Victoria Harbour and the neon lights of the financial center intertwine in the darkness to form a vast arena of fame and fortune.
He had one hand in his trouser pocket, his face calm.
To others, this was a high-stakes gamble that could lead to certain death.
Gambling is about not knowing the answer.
Knowing the answer, it's just a matter of bending down to pick up money from an ATM.
Time passed second by second.
In the quiet conference room, the computer fans whirred.
The candlestick chart on the computer screen is fluctuating wildly up and down.
Just after the massive $10 million position was completed, cotton futures prices immediately began a slight downward correction.
It's just a pullback of a fraction of a percentage point.
With a leverage ratio of 100, it becomes a disaster that could cause anyone's heart to stop.
"Mr. Ye, the odds are falling!"
Sweat dripped from Li Zhiwei's forehead down his nose and landed on the keyboard.
"Large sell orders are dumping shares; they're trying to shake out the long positions!"
Acheng stared at the numbers on the secondary screen, his voice trembling: "The account loss has already exceeded one million US dollars, and it's still going down!"
One million two hundred thousand US dollars.
One and a half million US dollars!
The three traders were drenched in cold sweat.
A 100x leverage means that if the market continues to fall by even a fraction of a percent and hits the liquidation line, that 10 million US dollars will vanish in an instant.
Not even a crumb was left.
The atmosphere in the conference room was extremely oppressive, and the buzzing of the fan was irritating everyone's nerves.
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