Chapter 182 I know you are in a hurry
The profit from arbitrage is actually not high. Li Yuan and the others sold the chips at about two points, and took over five or six points underwater.
Not many were sold, and not many were accepted.
In about two hours, I probably earned around 10 million US dollars.
As Li Yuan took on more and more, the funds inside seemed to be unbearable. No matter how much Li Yuan asked for, they would give him as much as he wanted.
However, Li Yuan only took 500 million U.S. dollars in chips in the end, and never took any more.
If you eat it again, you will trap yourself.
Five hundred million U.S. dollars, on average, is equivalent to 20 to 30 million U.S. dollars per ticket. These funds are not enough to allow the institutions in those tickets to escape.
If they continue to eat chips, those institutions may directly let Li Yuan take over, and the result will be...
Of course, Li Yuan didn't have that much money to take over.
Li Yuan currently holds long orders of US$1.4 billion and has more than US$300 million in reserve.
Plus more than $400 million in leveraged short orders.
Seeing that the other party did not respond, Li Yuan decisively gave the order.
"Continue to open short orders at this position, follow the previous process, and open today's first round of short orders."
The pain point on Wall Street is that they have to face the problem of investors withdrawing their capital. They must make the data look better, and no matter how bad it is, they cannot suffer too big a loss.
If Li Yuan is willing to fully take over the deal, they can cash it in. Even if the discount is 20 points, it will be worthwhile for them to get cash.
Because their own capital bubble is more than twenty points.
If someone promotes it, they can accept it.
What I'm most afraid of is that I can't get out my funds and the stock price is still falling.
Today, if Li Yuan takes over US$500 million, there may be an organization that throws all the chips in his hands to him.
They really don't want to compete with others now. Yesterday was just an experiment, and each company paid millions of dollars to test the waters.
There are hundreds of institutions associated with these stocks, each with several million dollars, which is not a small amount in total, but for a single institution, it is really not a big investment.
As Li Yuankong came out, they were completely stunned.
It has become a consensus yesterday that the new guy is not easy to mess with, but you are almost done with it, you have to chase him and bite him, right?
They watched the stock price drop a few points and decided not to enter the market because they thought the book was ugly.
Come in, you don’t know when it will end.
From yesterday's test, it was already clear that the opponent was determined to pull the lever. Unless the opponent could pull the lever in one go, it would be useless.
Because the opponent does not have many chips and has greater flexibility.
They even realized that the other party might be hedging and being very bold, making it even harder to pull off the blow.
Seeing that the stock price was about to drop ten points, they felt entangled in their hearts.
But this is far from the end, just a beginning.
At two o'clock in the morning, Li Yuan saw that those people were silent and decisively opened the second round of empty contracts again.
This time the attack was more thorough because the force of the attack was weaker.
Twenty to thirty million dollars were spent on each stock, but in the end no one took the deal.
It directly penetrated the bottom line of twenty points.
At this time, as long as it is pulled from twenty points underwater to two points above water, all of Li Yuan's short orders will be liquidated at this time.
The more immobile the enemy is, the greater Li Yuan's chances are.
"Opening a long contract backhand will also increase the leverage by six times."
Li Yuan gave the order again.
There were twenty points of chips under the water. Since no one took them, he took them himself.
It's equivalent to taking the securities firm's bargaining chip into your own hands. Although you don't make any money, you may even lose money in handling fees.
He only takes over at about 20 points underwater, and does not use any chips at other positions.
On Wall Street, many institutions were unable to eat at noon. The cigar cabinets they usually used for celebrations gave me a headache when they saw them.
Twenty points is definitely the bottom line for Wall Street institutions.
Will investors take a look tomorrow? Good guys, you lost more than ten points to me in one night?
redemption! redemption!
Asking you to manage funds is not as good as my dog.
So after breaking through the twenty-point underwater position, the people and institutions on Wall Street couldn't sit still.
Although they are all small institutions, hundreds of such institutions go bankrupt in the beautiful country every year, but they cannot be bullied like this...
Just because they don't have much money doesn't mean they don't have money.
Where did the name capitalist country come from?
After all, they can be regarded as small capital, and they can also be regarded as the owners here.
They don't know who is causing trouble this time, whether it is a foreign institution or a domestic colleague, but they have been bullied to their faces, and they will not tolerate it forever.
For those who play with capital, every money they earn is filled with blood.
After trying it before, I felt it was not a good deal, but now...
As some phones gradually started ringing, around 3:30, the entire market began a major counterattack.
…
When Li Yuan saw funds entering the market and began to violently increase the price, he knew that the other party could not bear it any longer.
At the same time, he had only opened long contracts of less than one billion US dollars, 50% of which were taken from himself, and the other 50% were scattered chips attracted from the market.
The current situation is that we hold long orders of US$2.4 billion, of which US$1 billion are leveraged contracts.
Holding billions of dollars in short positions, all of which are leveraged contracts.
The remaining funds are only US$180 million.
When the stock price started to rise, Li Yuan immediately issued an order: "The remaining 180 million US dollars are on the water surface, and all of them are placed in short orders!"
He is not allowed to liquidate his position.
As long as you can continue to open short orders of 180 million US dollars at that position, after adding up the leverage, you will have short orders of more than 1 billion US dollars, which is enough to push your liquidation line up by about eight points.
In that case, the stock price will have to rise to ten points before you can liquidate your position.
From twenty points underwater to ten points above the water, a full thirty-two points were waiting for them.
Perhaps overall it is not that difficult for them to promote.
But if each family does not come up with US$10 to 20 million, it will definitely not be possible.
If you can come up with one or two million US dollars, then it shouldn't be a problem to come up with one or two hundred million US dollars, right?
Can’t take it out?
oh……
Wall Street's counterattack was surprisingly unanimous.
Li Yuan smiled after seeing it.
It shows that the information behind them is completely shared, even if it is not shared in full, at least it is shared in pairs.
And those people also realized that their opponents were the same.
But they don't have the authority to check Li Yuan's background.
Moreover, no foreign funds have ever specifically targeted them, so they subconsciously believe that some big capital in the beautiful country wants to drain their blood.
This is law of the jungle, and financial markets around the world must abide by this rule.
Either resist, or watch others cut your flesh.
McPherson is a little guy on Wall Street. His company's management scale is only one billion US dollars. This billion US dollars was created through years of increasing bubbles.
In fact, if we had to liquidate the stocks we held, we wouldn't be able to realize even $500 million.
The funds he has to pay to investors at this time are US$700 million.
This is a game of spreading flowers by beating the drum. As long as investors continue to come in and the previous investors don’t withdraw together, he can maintain the bubble and maintain the scale of his company earning tens of millions of dollars every year.
But once a run occurs, his company will go bankrupt.
There is no financial company that is not leveraged, and it is impossible for those who play securities to de-bubble.
Bubbles are profit points, but bubbles are also life-threatening.
The bigger the bubble, the more money you make.
In the same way, the bigger the bubble, the more desperate the death will be when it kills people.
Now he is faced with a situation. If he allows the other party to suppress him, his bubble will be burst and the company will definitely go bankrupt. After the run, even if he can apply for bankruptcy protection, he will never be a billionaire and become a poor man. , this situation is unacceptable to him.
In this beautiful country, it is impossible for poor people to turn around even if they spend ten more lifetimes.
The descendants of the poor do not enjoy high-quality educational resources. Even if they work hard and have good academic performance, it is almost impossible to get a letter of recommendation from a prestigious school.
Once you have lowered your class status in this beautiful country, and you want to cross over again, the chances are likely to be the same as asking, "Do you believe I am Qin Shihuang or do you believe he can cross the class?"
Therefore, after McPherson saw that his heavy stock position was hit by someone by twenty points, he couldn't sit still.
If this performance is taken out tomorrow, investors who request redemption on that day will break the company's threshold.
And from then on, his company was doomed.
Not just him, many people are like him.
In the current fragile economic environment, we cannot afford this kind of loss.
Investors are like monkeys who work all day and night. They can change the allocation plan or reduce it a little bit, but they can never change from a day and night to a day and night. They cannot bear the price.
They decided to fight back. Even if the opponent has large funds, they can mobilize a large amount of funds to enter the market as long as they are willing.
This time, they will not give their opponents a chance.
They must defeat their opponents so they can survive.
It can also allow the market to continue to rise and maintain superficial prosperity.
On the surface they still have a choice, but in fact they have no choice at all.
Between bankruptcy and desperate efforts, no one would choose bankruptcy.
As their funds came in, stocks were visibly pulled up.
In the U.S. stock market, such violent fluctuations are very common, but many small stocks are buried in the broader market and are not known to anyone.
From twenty points underwater to five points above water, it took less than five minutes.
The funds on the market are very consistent. This time each company spent ten to twenty million US dollars, and only a few million US dollars have been spent now.
Soon, the stock price touched ten points above the water.
This is a warning line, and a liquidation situation may occur.
However, McPherson's expectations were ultimately met with failure.
A large number of chips fell directly at this position.
McPherson's heavy holdings of stocks resulted in a total loss of nearly $50 million.
If they want to eat such a large amount of chips, they will consume a lot of ammunition.
I don’t know how much of the US$10 to 20 million we have prepared will be lost.
Fortunately, they are not fighting alone, but as a group of people.
They had already been mentally prepared, so they did not flinch this time.
He quickly ate the chips thrown by the opponent and continued to counterattack.
This time, chips appeared again...
It is still ten points above the water.
What does this mean?
It means that the chips sold by the other party for the first time are not short contracts. If so, then the liquidation line will be pulled upward.
"Man, the other party has added a short order again, and the other party has lost its hedging chips. He is already a lion without its claws. We can definitely try our best!"
Without hedging, those short orders are just decorations. The enemy can only keep adding margins or keep opening high short orders for hedging, which is equivalent to drinking poison to quench thirst.
The more the other party raises, the greater the loss will be when the position is finally liquidated.
This is a road of no return!
"Evan, this is yesterday's drama, we will be treated as clowns!"
"Yes, we are clowns, but isn't it always like this?"
"I want to take off this mask."
"You'll be beaten to death!"
McPherson didn't expect that his old buddy didn't want to play anymore at this time.
"Evan, we can't compete with big money. Just like we don't dare to look directly at a goddess at a cocktail party. As long as she glares at her, we will shit our pants."
"Fuck! What are you talking about, you bastard! You want to be a traitor! Not only will you go bankrupt, you will also lose your life!"
The so-called traitor is in this position, giving away the chips in his hand.
After all, it has already risen ten points. Whether it is a light position or a heavy position, it is easy to run away in this environment.
The price is to become a traitor to the entire group and let other funds bear greater pressure.
"Hey, Evan, I was just joking. I will continue to stick to our defense line, just like I will not secretly date the young woman next door. My character is worthy of everyone's trust."
When McPherson heard this statement, his doubts were not dispelled, but he became more and more uneasy.
because……
He wants to run too!
He is over 50 years old, and as long as he can cash out at a high level, the chips in his hand will not be discounted.
After receiving more than one billion U.S. dollars in cash and cashing in 700 million U.S. dollars to those investors, he still had several hundred million U.S. dollars in hand.
You can buy an island in Hawaii for a vacation...
If he doesn't come out for the rest of his life, it's impossible for those damn poor people to find him.
Soon, even under the suppression of a large number of short orders, the position of ten points was still broken through, and it quickly rushed towards the fifteen points on the water.
There is no difference from yesterday, it is nothing more than a shift of the liquidation line.
McPherson is excited!
Very, very excited.
This may be his only chance, the only chance to control his own destiny.
At other times, he can only be a clown, but now he can control his destiny.
As long as you sell a few of your heavily held stocks at this position, your redemption crisis will be lifted, and you will only have to face pressure from your peers.
How can anyone not be selfish?
He called his old buddy and said: "Old buddy, I know you are in a hurry, but you'd better not be in a hurry. You have to think about the price of your betrayal. Even if you take the money to buy an island in Hawaii, , someone will blow up your island!"
And he is not afraid, because he does not have to go to Hawaii...