Germany's surprise move exposed the contradictions between the EU countries and intensified the market's worries about the euro. However, in Asian trading, the euro variety has never been the mainstream, so even if it makes a lot of money, Zhongshi still has to shift its main force to the European market.

The foreign exchange market of the euro is mainly concentrated in Europe and the United States, and the exchange rate fluctuations between these two strong currencies determine the direction of the world economy, so most of the world's financial institutions are involved in the trading markets of the two.

"What happened to the euro in London?"

After reaping some of the profits in the Asian market, Zhong Shi quickly asked the traders, "What is the trend of the spot EURUSD, the March forward EURUSD, and the short euro option prices?" ”

These three correspond to the spot, futures and options markets, and the linkage between the three is very close, generally fluctuating along the same trend, but once there is an abnormality in the three, it means that there is a big difference in the view of the market.

The London foreign exchange market is the world's largest foreign exchange market, and the daily trading volume is larger than that of the New York foreign exchange market. The world's 100 largest commercial banks all have branches in London and provide foreign exchange services to customers around the world. In addition to multinational banks, there are about 300 designated foreign exchange banks with UK licenses, countless foreign exchange brokers, and non-bank financial institutions operating foreign exchange business.

In the London foreign exchange market, the most traded variety is the British pound against the US dollar, followed by the British pound against the yen, and the euro to the US dollar is only the third most traded volume. However, in recent times, the trading volume of the euro against the US dollar has increased by leaps and bounds, and has overtaken the pound against the yen to become the second largest trading instrument in the London foreign exchange market.

In the world's second largest foreign exchange market, the New York foreign exchange market. The volume of trading between the euro and the US dollar is the largest. However, due to the time difference, the peak trading time on the US side has not yet arrived.

"Spot 1.2377, futures 1.2154, short option price is 0.0047 instantly, and it is still falling."

A trader snapped out a flurry of numbers, "as the euro exchange rate on the Asian side hit a new low in nearly four years." This sentiment also affects the European side. Just now, the euro had a small rebound, but it may have fallen again due to the influence of the Asian side. ”

"Okay, let's enter the London market now!"

Zhong Shi gave the order, and soon traders changed their channels, entering the European brokerage channel one after another.

"1.2368, sell a billion euros in spot, test the market's reaction first!"

For the European market, which is much deeper than Asia. Zhong Shi's strategy is not to test slowly, but to drop a bombshell directly as soon as he comes up to test the reaction of all parties.

Although the trading volume of the London market can reach hundreds of billions of dollars every day, it is only about 100 billion dollars per instrument. So a single billion euro deal is a lot of money even in the London market.

Traders immediately picked up the microphone, looked for their familiar counterparties, and asked about the possibility of trading.

There is no fixed trading venue in the foreign exchange market, and this is because the main institution of foreign exchange trading is not a commercial bank. If it is not a non-bank financial institution, it is done with each other through telephone and foreign exchange trading systems. Ordinary people and institutions in general are not eligible to participate.

Of course, these are the main forex markets. The OTC market has no threshold, but it does not play a decisive role in foreign exchange pricing due to the issue of trading volume.

Through the inquiries of its own traders and the matching of foreign exchange brokers, the news that Tianyu Fund wanted to sell 1 billion euros quickly spread throughout the London market. But Zhong Shi waited for a long time. However, many people asked whether it was possible to raise the price, but there was no real opponent.

However, Jongshi was not in a hurry, because the price of the euro against the dollar was still falling, and soon the real-time exchange rate of the euro against the dollar came to around 1.2370.

"There it is!"

Just then, a trader shouted loudly. "Royal Bank of Scotland, at a price of 1.2368, wants our billion euros!"

"Sell it!"

Zhong Shi replied without hesitation, "It seems that today's downward trend has been formed, and we are ready to prepare more funds, and we want to replicate everything we have done in the Asian market." ”

The amount and volume of transactions soon appeared in the foreign exchange system, which naturally caused quite a stir, and under the influence of this large order, the exchange rate of the euro against the dollar soon fell below 1.2368.

"Another 2 billion euros, a price of 1.2360."

After the completion of the transaction, Zhongshi struck while the iron was hot, ready to sell another two billion euros of spot.

"Oh no!"

At that moment, a trader who was watching the forward contract shouted, "Look, everyone, the forward exchange rate is rising!" ”

Everyone hurriedly switched to the futures interface and found that, as he said, a forward long contract of up to 1.5 billion euros directly raised the exchange rate of 1.2110 to the position of 1.2140.

The market is divided on the future trend of the euro!

"Someone took our sell order!"

Soon, another piece of bad news came that Santander from Spain had decisively eaten 2 billion euros of the Tianyu Fund's spot at a price of 1.2360, a news that stunned the traders of the Tianyu Fund.

When the news reached the foreign exchange market, both sides of the transaction felt overwhelmed for a while.

Although Santander is a large commercial bank, it is difficult to do a single transaction of more than 2 billion euros with the authority of the trader alone, which must reveal the meaning of the upper echelons. This means that Santander believes that the current exchange rate of the euro against the dollar is low, and they buy at a lower price, and in the future they will inevitably make a profit by buying at a higher price.

But why do they think it will rise in the future?

For two consecutive times, the spot of Tianyu Fund went down by more than half, and seeing that this momentum from Europe still had the ability to continue to eat, he decisively stopped the next transaction, and Zhong Shi fell into deep thought.

"What the hell is going to happen?"

Jiang Shan also walked over and said to himself. He also saw something strange about the plate. After scanning the news surface and making sure that there was no abnormality, he found Zhong Shi.

"I don't know, but there must be something weird!"

Zhong Shi shook his head frequently, "I feel that something is wrong, but I don't know what the problem is. This feeling makes me very uncomfortable. ”

Thought and thought. In the end, Zhongshi still had no clue, but what is strange is that the exchange rate of the euro against the dollar still shows no signs of reversal, and is still slowly falling, but the trading volume has suddenly shrunk a lot.

In contrast to the spot market, in the forward market, the exchange rate of the euro against the dollar began to rise slowly, not by a large margin, but very solidly. The price of short selling options is also slowly decreasing, showing the same trend as futures.

This is where market divergence remains. There is even an enlargement of the performance.

"No matter!"

After thinking hard for a long time, Zhong Shi still couldn't find a reasonable reason, so he simply gave up his useless considerations and made up his mind, "Convert the battlefield to the American market, and at the same time, together with Paulson, Dario and others, I need to convene an urgent meeting." ”

Soon, these people were all online. Because of the time difference, the peak of trading is slowly shifting from London to New York. It was the time when they started work, so Jiangshan easily found them.

"Guys, have you noticed any anomalies in the euro exchange rate?"

Zhong Shi was the first to ask, "The market is very weird, I don't know if you have found it?" ”

"Yes!"

Paulson was the first to reply, "Forward markets and immediate occurrences of conflict. And there's a tendency to expand gradually, which is a bit wrong! ”

The others did not reply, but there was a crackling sound. They did not notice the current dynamics of the euro, so they hurriedly checked the market after Zhong Shi's speech.

After five minutes, the sound stopped. There was silence for a while, and naturally there was no doubt about Bell Stone and Paulson's opinion.

"I've checked all the news surfaces, and nothing out of the ordinary!"

Zhong Shi continued, "In addition, I will not tell you that I am the one who operated the euro crash that happened in the Asian market. Just appeared in the London market, two sell-offs of up to 3 billion euros, also made by Tianyu Fund. Originally, I wanted to replicate the success of the Asian market in the European market, but unfortunately the European consortium took it over. ”

"You know, my counterparty in Asia is the central bank!"

"One of my biggest deals in the Asian market was to the Central Bank of Thailand. But they soon realized that something was wrong, and I got lucky enough to make some money from them. But in Europe, without waiting for the central bank to intervene, I ate all my spot money, which is far more than the Asian market. ”

"So who is your counterparty?"

Dario, who had been silent, asked, "This is very important!" ”

"Royal Bank of Scotland and Santander."

Without hesitation, Bell Stone replied, "One is from Scotland and the other is from Spain, and they should have nothing to do with each other. I also checked their previous trading records, and the average lot size was only about 50 million euros. It was quite surprising to be able to eat billions of euros this time. ”

“……”

Dario also fell into deep thought.

"What do you mean?"

Paulson asked, "Mr. Chung, what are you going to do now that you have summoned us?" ”

Naturally, in this case, Zhongshi would certainly not summon them for no reason, so when Paulson asked this sentence, the others' eyes lit up.

Yes, the reason can be investigated later, and now Zhongshi must have a plan that needs to be completed by everyone.

"That's how I think about it!"

After pondering for a moment, Zhong Shi said slowly, "I want to gather everyone's strength to do a short-term attack today to see who is supporting the market and what they represent?" ”

"What do you mean?"

Paulson's reaction was swift, and he was immediately startled and asked, "You mean, someone is working against us?" ”

None of the others spoke, but the visibly bold wheezing spoke for itself.

"It shouldn't be against us, it's about the whole market!"

Zhong Shi thought for a moment and dismissed Paulson's claim, "Based on the current situation, they should be targeting the side that sells the euro." I mean, we're going to pool a bunch of money and hit the euro to the dollar to a low level in a short period of time, to expose the big buyers in the market, and then we'll see what they're going to do. What do you think, gentlemen? ”

"How much money are you going to pool?"

For Zhong Shi's method, everyone was noncommittal, but on the issue of the amount of funds, everyone inevitably had to bargain, and Ackerman, who had the least wealth, was the first to ask.

"10 billion euros in stock!"

Zhong Shi said decisively, "Tianyu Fund will give 3 billion euros, and you will divide the other 7 billion euros, and sell it at the market price today for a short-term test." ”

"I have 2 billion euros here!"

Paulson did not hesitate to say, "This leaves only 5 billion euros, and if it is only for the short term, you should easily scrape together that much money." ”

He was afraid that others would refuse, so he said such things as soon as he opened his mouth.

Naturally, these funds borrowed large sums of euros before shorting Europe, and now it is simply impossible to say that there is no spot. (To be continued.) )