The Dahua Industrial Futures Department has already been prepared, and when the order is issued, it will start to close the position at a rapid speed.

In the process of closing positions, the price spread that was expected to converge has a tendency to widen further, because many traders found that millions of barrels of crude oil that should have been shipped to New York were diverted to London, which led to an increase in inventories in London delivery warehouses and a decrease in Cushing's inventories, further lowering prices in London and creating prices in New York.

Taking advantage of this trend, Dahua Industrial has almost completely pocketed the profits of CFDs, with a total of up to 5.2 billion US dollars, far exceeding Qi Xiao's expectations.

In fact, it was also a bit more than Sioux City expected.

Seeing this entry into the account, Qi Xiao, who was busy with everything, also spent three seconds in a daze. And Xu Feng, the fourth sister who was far away in China, immediately called and asked Su Chengdao: "In several accounts of our company, there is suddenly a lot of money...... 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 is not from a professional class, she is diligent and studious, and she is very suitable to do a supervisory position in the finance department of Dahua Industry, and most of the capital flow in the group is under her supervision.

Xu Feng has not seen billion-dollar funds, but it is the first time to say that he has a one-time income of billions of dollars.

Su Cheng smiled bitterly twice, not knowing how to explain. Said: "It's half luck and half preparation, it's a bit beyond my imagination, but there are proper procedures." You also check with the banks of several accounts to see if there are any fees to be paid, and hand them over to deal with them. ”

Some of Dahua's major overseas banks are all large commercial banks with considerable strength, or local snakes with strong local backgrounds, and they are the best at handling government relations.

The disadvantage of a CFD over a pure futures contract is that it has to pay a commission to both exchanges. However, futures exchanges have always had very few fees because they are essentially clubs for members. Although Dahua Industrial has made billions of dollars, the fees it can pay are about the same as those of financial institutions that make millions.

As for taxes. It's pure none. U.S. government in '94. Instead, discussions are underway to impose a tax on futures exchanges to alleviate the current financial predicament, but to no avail. Since Margaret Thatcher's small government and privatization, London has struggled to increase new taxes. At present, the futures trading tax is mainly collected in four regions: Japan, Finland, France and Hong Kong. Among them, Japan is taxed at 2/10,000 of the closing price, Finland is taxed at 5/10,000 of the closing price, and France is taxed at a fixed transaction of 0.05 francs per order. In Hong Kong, it is HK$5 per transaction completed, which varies from region to region. But in general, the futures tax is still a small tax, and no matter how it is levied, the total amount is very small and insignificant.

In contrast, the fees for the exchange vendors and the banks that provide leveraged funds are a little more, but they are only millions of dollars.

Therefore, Dahua Industrial made more than 5.2 billion US dollars in profits through CFDs, and after removing all expenses, there are still more than 5.2 billion left.

And the Dahua Group has always been 100% in the hands of Sioux City.

With this money in his hand, Su Cheng felt a lot more settled.

Qi Xiao was still enthusiastic, and his lips were chapped and he said, "Su Dong, do we want to buy another contract that narrows the price difference?"

Full of gambling, but also a normal idea, in the case of the spread widening to $2.2, the reverse purchase of the contract with the narrowing of the spread is less risky and more profitable.

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

If it goes back to the $1 range, it will be so much profit.

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

However, when Sioux City studied petroleum finance, crude oil CFDs often exceeded $15, and even exceeded $20, and the spread of $2.2 really couldn't make him feel safe, so he decisively refused: "It's okay to speculate once, and now we must close our short positions as soon as possible." What about Sumitomo Corporation?"

Qi Xiao was also relieved, adjusted his mood in an instant, and replied: "Residents don't seem to have any action, and the possibility of quietly selling long orders can't be said to be nothing, but it's not too big." I asked someone to check the long and short trades of the right talents, and if Sumitomo reduced his position, we would find out. ”

Sumitomo, of course, didn't make any moves, and Sumitomo Trading and his allies were already in a stupor.

Just as Pan Asia Fund has a heavy position and cannot easily retreat, Sumitomo Corporation also holds a heavy position and cannot come on a trip.

To add insult to injury, Michio Matsumoto has the support of the trading company's headquarters, and some of the affiliates attached to Sumitomo Trading, as well as allies such as Ito Trading, have been betting heavily on the $15 to $16 range.

Of course, this is also their greed, always feeling that the price of crude oil at $16 or $15 is low enough, and it's a big deal to wait until delivery and ship it back to China...... However, in the $300 billion long-short firefight, waiting for delivery is basically impossible.

For every 10 cents that fall from an average price of $16 to $17, the Pan Asia Fund can earn between $1 billion and $2 billion, which is equivalent to freeing up $1 billion to $2 billion in margin, thereby leveraging another $15 billion to $30 billion in funds.

In contrast, Sumitomo Trading, a multi-party company, and its allies, lose between $1 billion and $2 billion in guarantees for every 10 cents of crude oil prices fall. When that number drops to 50 cents, Sumitomo Trading will need to make a margin call.

Otherwise, once the position is liquidated. All long orders will be sold directly by the system, and no matter how much money is sold, they don't want a cent of margin. It is equivalent to a big loss, a special loss, and a loss.

Therefore, in order to avoid liquidation, Sumitomo Corporation has to constantly invest more funds as margin.

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

Sumitomo Corporation itself is a financial trading company, and in the beginning, they were able to receive a steady stream of financial support from the trading company. Even if it is a big loss, it is no exception.

However, when Sumitomo Trading's banks ran out of money, there were very few banks willing to act as ATMs for them. It is also difficult to replenish the requirements.

This is the opposite of the Pan Asia Fund.

On the one hand, the seven shareholders of the Pan Asia Fund were well prepared and spent several months and through various means. It has won the financing support of banks in many countries. On the other hand, and most importantly, Pan Asia Fund is always winning.

Their margin is not getting less and almost depleted, but more and more endless.

Therefore, in the later stage of the long-short war on the London International Crude Oil Futures Exchange, it basically became a pan-Asian fund with more than 15 times leverage, betting on 10 times the leverage of Sumitomo Corporation and other companies, and even five times the leverage. The funding gap is self-evident.

This is a $300 billion long and short gamble, even if it is leveraged. There have to be banks willing to provide it. Sumitomo Corporation, on the other hand, has a large pool of funds, although it has a large amount of assets.

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

Whether it is Sumitomo Trading Company, which has assets of 300 billion yuan, Ito Trading Company, which has assets of 100 billion US dollars, or soy sauce people with assets of 10 billion US dollars, they also have tens of billions, tens of billions, and billions of dollars of business to do every year, how can they put all their funds on the London Futures Exchange.

The directors will, and the tens of thousands of employees in other departments will not, the employees will, and the Financial Services Agency and the Ministry of Finance will not, and if the Japanese do, the British will probably laugh at Alzheimer's, which is hundreds of billions of dollars out of thin air, and it will not be realized until August, September, October, and November.

Such a large sum of money may be able to help the UK boost GDP by two points.

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

Billions of dollars, billions of dollars, but it won't help.

It is possible in small markets such as agricultural products, and it is basically not feasible in crude oil futures trading, which accounts for one-half of the world.

Michio Matsumoto kept in the office of the exchange, holding the coffee cup in his hand, almost crushing it, and finally did not wait for the moment of rebound.

At 19 o'clock in the evening, the secretary reminded as usual: "There is still half an hour left for the manual market to close." ”

Michio Matsumoto's eyebrows furrowed, and he habitually looked at the big screen: 14:22.

He didn't have to look at the two numbers in the back, the $14 in the front, and he didn't have any strength at all.

"So much money was put into it...... Hirano, this guy. Matsumoto gritted his teeth. Since coming to London, the good window period of $15 has ended, and he just wants to play a role, but he has no chance, but he has invested a lot of money, but nothing has worked.

While he's not sure he'll be able to catch the $15 window, that doesn't mean he won't blame Hidetomo Hirano.

Especially before making a tough decision.

"Minister?" the secretary was worried that Matsumoto had not heard clearly, wasting time, and there was still half an hour, and the manual plate was about to end.

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

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

Closing a position is leaving the market, and there is no chance of turning over the book.

If it's in a casino, it's like not even looking at the hole cards and announcing "no follow".

The secretary has been with him for a while, and he doesn't need to calculate, that is, he said: "The loss is more than $5 billion." ”

$5 billion is one-sixth of the Pan Asia Fund's profits, which seems to be a small amount in comparison, but in a smaller bank, such as the famous Bank of Bahrain, so much money is enough for them to fail.

Michio Matsumoto asked even more sensitively: "Are you sure it is more than $5 billion?"

"Yes. ”

"Will it exceed $6 billion?"

"This ...... Not sure. ”

"Go and make sure. "Michio Matsumoto was sick and rushed to the doctor.

The secretary was stupid and stood still. How to confirm this, the closing of a huge number of long orders, God knows what will happen.

Michio Matsumoto also quickly came to his senses, turned his head and said, "You tell Tanabe and let him prepare for closing the position." ”

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

$6 billion is on the list of huge losses of Japanese financial companies.

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

Matsumoto Mao suddenly got up and said, "Shut up." Go and inform Tanabe and don't tell anyone. ”

When it comes to escaping, where can you take care of your allies.

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

…… (To be continued......)