Chapter 841 Capital Game

"Aluminum futures rose 1.9 cents last week, with a floating profit of 475 yuan, and we held 6,500 lots, with a floating profit of $3,087,500 last week......"

In the U.S. futures market, advanced copper and aluminum futures trade lots of 25,000 pounds, and the quotation rule is cents per pound, with a minimum change of 0.05 cents/pound and a daily limit of 20 cents/pound.

One dollar is worth one hundred cents.

It seems that the limit is 20 cents/lb, but if you look at the opening of the New York Mercantile Exchange this morning, the price of advanced copper futures is $0.5890/lb, and aluminum futures are $1.2125/lb.

If the price can be increased every day, the price of advanced copper futures can double in three days, and aluminum futures can double in about six days.

If the futures price skyrockets, it will promote the spot premium, and the impact will ferment if the price does not fall for a long time.

Therefore, under normal circumstances, it is difficult for large-scale industrial metals such as copper and aluminum to touch the stop.

After everyone present looked at the investment situation last week, Song Yang said to everyone: "Everyone has seen the situation, what do you think?"

Xue He took the lead in saying: "Based on the market in the past two months, last week's senior copper futures and aluminum futures rose rapidly, and the frequency of trading rose by more than 20 percent, the reason for the increase has been analyzed, the United States Southern Counter Company has news that copper production fell by 4.5 percent in the second quarter, and Peruvian Copper Company's copper production fell by 5.2 percent in the second quarter, and some media estimate that the global supply of copper metal will shrink, and copper prices will rise further." “

"Metal aluminum is similar. ”

"We've been a lot late, so there's now more capital speculating on senior copper futures and aluminum futures. ”

"We currently hold $117.8 million worth of senior copper futures and $197.03 million worth of aluminum futures. ”

"The boss once told us that in the coming year, senior copper futures and aluminum futures are an upward trend, after a few months of verification, the boss's guidance has been fulfilled, I personally suggest that there is no need to hesitate, you can let go of a large amount of investment in senior copper futures and aluminum futures. ”

After Xue He finished speaking, Ma Kai also stood up and echoed: "I agree with Xue He's analysis, from the very beginning of entering the senior copper futures and aluminum futures, our total floating profit has exceeded 25 million US dollars, at the beginning of the year gold futures and silver futures plummeted has been several months, capital has eased up, but has been wait-and-see, now copper and aluminum prices are about to rise, the capital will enter again, in the field of rare metal futures, advanced copper futures and aluminum futures are the most suitable incubators." ”

Immediately afterwards, Wang Gang, Li De and others, as well as several elites recruited by the Galaxy Fund after taking root in New York, also expressed their opinions, although some people had different opinions, but the minority obeyed the majority, and finally discussed and decided to let go of their hands and feet to follow up on a large scale.

It's no wonder that they are really too energetic for Philip Brothers, not only to speculate on futures, but also to use their connections to greet mining companies, and let the media come forward to spread the news, making it the same as the real thing.

With mental calculation or unintentional, it is impossible to prevent it at all, and it is inevitable that Song Yang, Xue He and others will be recruited.

......

After the meeting, Song Yang made a phone call with Xia Yu to ask for instructions, and Xia Yu didn't care too much about it after learning about it, and directly approved Song Yang and others' plans.

After getting the approval, Song Yang and the others were like chickens, and they all geared up, and then a large amount of money poured into the New York Mercantile Exchange.

Song Yang and others frequently opened positions and traded, all of which fell in the eyes of those who were interested.

Philip Brothers' Rare Metals Investment Division.

General manager Albert Rafael walked around the trading bench and received reports from Harlan Dryden and Sean Andrew, and the corners of his mouth couldn't help but curl up after listening to it.

"Very good, the big fish has taken the bait!"

Hearing this, Haaron Dryden, senior copper futures department manager, and Sean Andrew, aluminum futures department manager, laughed at the same time.

"Yes Boss, it seems that the Galaxy Fund has made up its mind at present, faster than we expected, it seems that they are not slow to react!"

"So shall we execute the next step in advance?"

Albert Rafael shook his head and said: "No, we need more patience, and in the next few days, continue to speculate on the price, leaving us more room to short, while continuing to deliver a part." “

"Of course, there are too many smart people on Wall Street, and our plan is not complicated, so it has to be implemented as soon as possible, otherwise it will be us who are unlucky. ”

"If the plan goes well, the short order will be officially placed on Thursday. ”

"Okay Boss~"

"Then give them some more fodder and let them get a little fatter, hehe. ”

After saying that, Harlan Dryden and Sean Andrew immediately went down to set it up.

Over the next few days, senior copper and aluminum futures on the New York Mercantile Exchange (COMEX) were trading higher.

Not only that, but the relevant supporting means have also not fallen, not only Song Yang and others believe it is true, but even other capital and retail investors also believe it is true, and a large amount of money has poured into high-grade copper futures and aluminum futures, which has further pushed up prices.

Song Yang and others have made up their minds to double the total investment in just three days.

And the floating profit of nearly 10 million US dollars just after investing is even more supportive of their analysis.

As soon as Thursday arrived, Albert Raphael gave an order and began to use the small vest of Philip Brothers to hang out short orders to sell contracts, which were very slow at first, and very cautious, and the short orders thrown out were also the kind of ten or twenty lots, and as soon as they were thrown into the hot market, they were drowned without a single bubble.

Immediately afterwards, the number of short orders gradually increased, and they were all eaten by the surging bulls.

Unconsciously, the Galaxy Fund has become the majority of the senior copper futures and aluminum futures markets.

At first, Song Yang, Xue He and others didn't feel wrong.

After all, the futures market is different from the stock market, and shorting in the futures market is all too common, and it is much simpler than shorting the stock market.

In the stock market, if you want to go short, you must first borrow the stock from the bet, then sell the stock, and finally buy it back at a low price and return it to the bettor.

In this way, the stock market is a gambling table, and the two sides of the gambling are very clear, that is, the two sides of the bet.

However, the futures market is different, the entire futures market is a large gambling table, which can be bought by gamblers, and there is no clear opponent at the beginning, or the opponent is too extensive, so as to divide the long and short.

The bulls believe that the price of the futures contract will rise, so they keep taking a position to buy the contract.

On the other hand, bears believe that the price of the futures contract will fall, so they sell the contract they hold.

And unlike the stock market, shorts can be shorted "out of nothing".

What does it mean to "make something out of nothing"?

That is, I don't have a futures contract, but I want to sell short to make money, what should I do?

Then "borrow" from the exchange, "borrow" it, sell the futures contract, and then wait until the price drops before buying it back and returning it to the exchange.

Although borrowing futures contracts from the exchange, what is actually earned is not the money of the exchange, but the money of the longs, and the exchange is just equivalent to a platform.

But what if a short or long position fails?

At this time, it is necessary to wear down the margin placed on the exchange, and the amount of margin is different.

For example, for a certain variety of an exchange, when the contract position in a single month is less than 200,000 lots (long and short combined), the margin ratio is 5%, when 200,000 to 300,000 lots, the margin ratio is 8%, when 300,000 to 400,000 lots, the margin ratio is 10%, when 400,000 to 500,000 lots, the margin ratio is 15%, and when the margin ratio is 500,000 to 600,000 lots, the margin ratio is 20%....... And so on.

Theoretically, as long as the margin is sufficient, it is possible to open unlimited positions.

In the final analysis, the futures market is a more pure capital game than the stock market, and it attaches great importance to the hard power of shorts and bulls.

A seesaw, it's up to who's heavier!

Of course, in addition to the efforts of people on both sides of the seesaw to gain weight, there are also uncontrollable external factors that can influence.

In the futures market, strength and luck are equally important!

It's Monday again.

It's only been seven days, and it's all Monday.

However, Song Yang and the others were not as relaxed and comfortable as last week.

As a result, the situation for mid-to-senior copper and aluminum futures on the New York Mercantile Exchange seems to be a bit bad for them.