"You must play to death these sons of bitches, you really don't take people like us seriously." Carl said angrily, and he slammed the heavy mahogany conference table with a loud bang, startling the traders who were discussing it, and they all looked at Carl inexplicably.

"We've got to do something...... Karl muttered over and over again, then he got up and walked back and forth frequently. Several traders saw that he had such a big reaction, and they didn't know what to say for a while.

The conference room fell silent for a while, only the sound of Carl's shoes hitting the floor as he walked back and forth, and after a long time, Carl reacted: "What's wrong with you?" Why is no one talking? ”

A few traders, you look at me, I look at you, and I don't know what to say for a while. Jerry was still more bold and said, "Boss, since that's what the main force means, what should we do?" ”

"Short!" Karl shouted hoarsely, "Short, of course!" Jerry, your analysis is not wrong, 100% correct. According to our analysis and judgment, once this part of the bulls close their previously profitable long positions, they will immediately choose to close the long positions in November in the market, and then it will be the time when the price of copper futures falls rapidly, we can't miss such an opportunity, understand? ”

"Understood!" All the traders shouted in unison. But then someone asked: "But boss, what is the specific price, and what kind of position should we operate in?" ”

This data is related to when they enter and exit the market, so traders must ask clearly. in order to operate in the market in a timely manner.

As soon as he heard this, Carl seemed to have been poured a basin of cold water from beginning to end, and his originally hot mind suddenly calmed down. He was originally a proud man, and since he founded the hedge fund, he has been at the forefront of the industry in terms of performance, which has given him a sense of vanity that he is in control of the whole situation, especially after entering the copper futures market, making five million dollars in excess returns in just a few months, which makes him even more arrogant and pompous.

Although he is impetuous, Carl's grasp of the analysis of the disk and the psychology of both the long and short sides is superb, which is why he can see the price changes in the copper market during this period. It's just that he thinks he's an important player. Today, it was discovered that he and his fund were surviving on someone else's strategy throughout the copper futures market. This made him feel extremely depressed and unhappy.

Unhappy is not happy, since he has seen the intentions of both the long and short sides, Carl will definitely not let go of such an opportunity, and his eyes quickly rolled a few times. I made up my mind. Say, "Since you want to go short." Let's make the next biggest. The current price of copper is around $2,700, and it is believed that the price movement in the next few trading days should be around this level. We can consider opening a short position above this position, which can also protect against some of the risks. As for the price at which the position will be closed in the future. My personal estimate is around $2,550, which should be the normal copper futures price. As for positions, eighty percent is a more appropriate figure. ”

"Eighty?" The traders were a little surprised, looked at each other, and were a little dumbfounded, and finally Jerry voiced their doubts: "Boss, is this position too high?" ”

With their current amount of funds, they can open up to 1,500 short positions, and this is if they empty all their current positions. They are already gradually clearing their long positions, and the proportion of cash has now reached 60%, and the remaining positions can be fully liquidated in a trading day or two.

Even so, it is still too risky to operate in a single direction with eighty percent of the total amount, especially if the copper futures market does not rise or fall.

"Not much!" Carl is already determined to go all out this time and is unimpressed by the reaction of the traders, "This time we are going to increase the leverage and borrow money from the brokers. Jerry, with our credit limit, how much money can we borrow? ”

"Our credit limit is low, and the broker gave us two options, one is 30 times leverage, that is, for every one lot we open, the broker will contribute half of the funds, in which case we can open a short position of up to 2,500 lots. In addition, he lent us a lump sum of $5 million, and the interest was calculated according to the market benchmark rate. Jerry said unhurriedly.

In addition to being in charge of trading, Jerry is also responsible for dealing with brokers, so when Carl asks about it, he is able to answer immediately.

Of these two schemes, it seems that the first one can lend more funds, but the manipulation of this scheme is affected by the broker, that is, in the event of a loss, the broker has the right to require the fund to close the position and stop loss. For example, it would take $10,000 to open a short contract at $2,666, $5,000 on the fund side, and $5,000 on the broker side. When the price fell to $2,600, the contract earned $1,650, and excluding the broker's $5,000, the fund made $1,650 on a $5,000 principal, a yield of 33%. Once the price of copper futures rises, for example, to $2,710, although the contract only loses $1,100, it has not yet reached the level of maintenance margin, but for the safety of its own funds, the broker is very likely to require the fund to call the margin or even close the position, because this contract is currently only $8,900, which is close to the level of $8,130 (2,710 * 25 * 0.12) required by the maintenance margin of 12%.

The price rises to $2,740, the contract loses $1,850, and is only worth $8,150, and the maintenance margin reaches $8,220, the contract will be liquidated, and it will be forcibly closed before that. At that time, in addition to the broker's $5,000, there was only a little more than $3,000 left in the fund, and the loss reached 40%.

Increasing leverage, although it can magnify the returns, but at the same time, the risks are also magnified. Another option is to give a lump sum of money. Equivalent to a loan, although the amount of this financing is not large, compared with the first option, the operation of the fund is much more flexible and the degree of constraints is much less.

Karl, of course, understands the advantages and disadvantages of this method of financing, and just when the traders are inclined to the second option, he suddenly gritted his teeth and said a little harshly: "Let's increase the leverage and borrow money in the first way, it will be a big game." ”

"It's not big, is it? The stakes are just too great! ”

"If the market is not what we expected. We'll probably be done. ”

……

The traders hurriedly persuaded. This time is no longer crazy in the eighties, like Joel. In the era of crazy playboys like Belfort who did anything to make money, today's Wall Street financial practitioners pay more attention to taking advantage of the chaotic financial order to make a fortune, but the only constant is their crazy pursuit of money.

Apparently Carl is such a person. He shrugged off the concerns of numerous traders. After smearing your shiny hair. He said to the traders, "Gentlemen, don't think about the risks, because we are now facing a very good opportunity. Do you understand? There are no more than ten people who can see this opportunity in the market, understand? And even if we go in the wrong direction, there's plenty of room to stop our losses. Gentlemen, who are we? We're hedge funds, we're the more leveraged the better, the bigger the returns, the better the industry, we're not those damn investment banks, we're not damn public funds, we're the ones who beat the central banks. ”

Since Soros's interview, people inside and outside the industry have called him "the man who beat the Bank of England", and Karl, who idolizes Soros, often says this phrase. In fact, with his performance in recent years, even Soros is just that, but the scale of his fund cannot be compared with those large hedge funds.

More importantly, these funds are entrusted by customers, and even if there is a huge loss, these managers will not lose much, especially when their own funds are very small. At this time, Carl was already a little crazy, and he couldn't listen to other suggestions. The traders' persuasion was also based on risk, and they, like Karl, were arrogant people who were extremely confident in their analysis and judgment, and after some careful discussion, they finally decided to carry out Karl's decision.

Establish a short position near $2,700, with a position ratio of about eighty percent, and the current copper price will fall to $2,600 and begin to gradually close the position, which is the strategy formulated by Carl. After discussion, the traders finally decided to use the reserved funds to buy some of the long options in December as a risk hedge.

After contacting the broker, they finally calculated that the total number of short positions that could be opened was about 2,400 lots, leaving $3 million for reserve margin.

……

On Zhong Shi's side, after successfully establishing a long bottom position, he is secretly discussing with Andrew to prepare to raise the price of copper futures in the near future.

"Andrew, we already have a long position of close to 30,000 lots, and now we can be regarded as the main force in the market, it's time to do something!" Zhong Shi said confidently.

In the Hilton's luxury suite, there are only two people, Andrew and Bell Stone. Bell Stone was eating breakfast slowly in silk pajamas, while Andrew, who was already fully dressed, was sitting across the dining table and looking at Bell Stone with some confusion.

The rooms in the hotel are covered with scarlet carpets from exotic Arabia with unknown motifs. The furniture is all from Italy, and the fine teak wood is sprayed with shiny paint, which makes people look particularly comfortable. In addition to these luxurious decorations, there was even a Steinway piano in the corner, but Andrew tried it a few times and found that the piano had not been tuned in a while.

Andrew came to pick up Bell Stone, and Bell Stone was very uncomfortable with the habit of driving on the left side of the United Kingdom, so Andrew naturally played the role of a driver. It's just that he was worried when he came on this day, and before Zhong Shi finished breakfast, he asked about Zhong Shi's specific strategy for operation.

"Do something?" Andrew's eyes widened, and his face was full of doubt.

Zhong Shi shook his head helplessly, drank the orange juice in the cup, wiped his mouth, and then said in a tone of hatred: "What to do?" Of course, it's the price of copper during the control period! (To be continued......)

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