The dream is beautiful, but the truth is quite cruel!

When the time for the opening of the United States arrived, the price of gold began to fall wildly from $1,110, and its speed can be described as a thousand miles, the market was filled with long closing orders and short orders from all over the world, and the scale reached a stunningly large level, with more than 10,000 short orders being hung out at the moment of opening.

In this case, there is simply no way for the bulls to stop the decline, because this is the trend of the market. For now, they can only avoid the edge for a while, let the price of gold go into free fall.

1110, 1105, 1100, 1095 and other integer points were rushed away by the bears like a bamboo, and the market had no ability to resist at all. And this decline has intensified the amplification of panic, and the institutions that have abandoned many orders in hand have become more and more crazy.

The bears went crazy, the bulls dodged, and the price of gold was out of control, all the way down, and there was no sign of the main bulls until it fell to $1065.

"That's more than 4%!"

Cologne. Stitchon closed his eyes in pain and whispered to Jack beside him. Mullen asked, "How many did we flat?" ”

“……”

Jack. Ma Lun didn't speak for a long time, he didn't dare to tell his boss that from the opening to the present, they had only closed hundreds of long orders, because they couldn't make a deal at all. Even if their traders were quick to put the order up and fill it successfully, the number was very small, because the next moment the price fell beyond their imagination.

Compared with KS&JR's 8,000 long positions, the closure of hundreds of long positions is only a very small part, and because the positions were increased at a high level two days ago, even if these orders were closed, they were also losses.

"Wait......"

Right here in Cologne. Stetson is still waiting for Jack. Mullen answers when Williams. Roger shouted suddenly. "Is there something wrong with the system? Why is the number of positions displayed here reduced by more than half at once? ”

"What?"

Jack. Malen suddenly felt a shock in his heart, and hurriedly looked at the screen again, but was stunned to find that in the column of the total number of positions, KS&JR had reduced by as many as 5,000 lots. At present, there are only more than 2,000 odd lots left on the books.

"Who is it? Who exactly? ”

He was immediately ecstatic, stood up and shouted to the traders, "Who made the match?" God, you've done a great job! I must reward you, now! ”

He looked at Jack blankly. Mullen, followed by Cologne. Stexon's eyes stayed on the screen, and this look made him equally ecstatic, "Oh my God, we actually closed so many singular numbers?" ”

He shouted in disbelief.

But in response to both of them. The traders looked at each other even more blankly.

"Who? Who the hell is it? ”

Jack. Mullen shouted anxiously, "No matter who it is, don't be in a hurry to identify yourself first, anyway, you will find out who it is according to the transaction records later." Now, I need you to keep working hard and close all your long positions! Remember, it's all closed! ”

The traders reacted quickly, and they thought a little. Just understand what the hell is going on. The traders exchanged glances and looked at Jack again. Mullen's time. There was an indescribable meaning in his eyes.

"Stop shouting!"

Williams. Roger seemed a little overwhelmed and walked over and patted Jack. Mullen's shoulder, whispered, "That's not the trader's doing, it's the broker!" ”

"What? Brokers? ”

Didn't understand for a while, Jack. Mullen subconsciously asked rhetorically. Then the expression of joy disappeared from his face in an instant, like the water at low tide, and then his voice became trembling, "You mean, we ...... Liquidated? ”

"Not bad!"

Williams. The corners of Roger's mouth twitched slightly. After hesitating for a while, he couldn't help but explain, "Our leverage, which triggered the minimum insurance ratio, has been actively triggered by their program to close the position." Because the rate of decline was so fast, they didn't even have time to make a margin call! ”

"This ...... It can't be, right? ”

Jack. Maren was dumbfounded.

When operating in the futures market, because futures itself has leverage, it is generally around 10 times to 20 times, depending on the amount of margin of the trader and the real-time futures price. However, if they are not satisfied with this leverage, investors can still increase the leverage through the broker.

Of course, for brokers, they can lend leverage, there must be some risk aversion measures, just like a futures exchange, there is a minimum margin rate to maintain a position. For brokers, when there is a problem with their leveraged positions, the risk is also equivalent to being transferred to their funds, so internally, they also have a risk control position for forcibly closing the positions that are leveraged again.

This position is much higher than the regulations of the exchange!

KS&JR currently has 8,000 long positions, of which nearly 4,000 lots are leveraged by brokers, and the average price of these positions is around $1,100, and the gold price has fallen by 4% so far, and 2 times the broker leverage plus more than 10 times the leverage of the exchange itself means that this part of the position has lost more than 80%. In this case, the broker made a quick decision and decisively chose to force close the position.

The reason for adding another part, more than 4,000 lots, is the broker's consideration based on market liquidity. In the event of a further drop in prices, the closing of 4,000 lots will not make up for the funds they have released. So on their side, they chose to close more positions.

In fact, they also left a part of the position for KS&JR, which is already benevolent. Because according to the current loss ratio, the entire KS&JR position has been blown up.

So far, the price of each gold contract has fallen by $45 on the market, which is the real $4,500. And for 4,000 contracts, that is, a loss of $18 million. And that's not even counting KS&JR's other losses. For a fund of less than $100 million, that number is nothing short of devastating.

The worst thing is that the average price of those positions, which at one time earned more than 50% profit, was also above $1,065. That is, this part of the position has also suffered losses to varying degrees. In other words, KS&JR's losses so far have been much higher than that.

"Why can't it be?"

Williams. Roger was still calm, but the corners of his eyes twitched rapidly, and it was clear that his heart was quite unsettled. "From the moment we were closed, we were completely finished! Unless there is a miracle, we will still be involved in debt disputes! ”

The current situation in the market is such that there is a lack of liquidity, and further declines are not ruled out. If the final broker's closing price is much lower than the current one, then not only will all KS&JR's positions not be guaranteed, but if the money from the liquidation is not enough to compensate the broker for lending funds, then in the end the two parties can only go to another way to solve the problem, and even do not rule out a lawsuit.

"Can only hope for a miracle?"

Jack. Mullen looked at Coren with great sympathy. Stitchon glanced at it. Shaking his head helplessly, he repeated to himself, "I can only hope for a miracle!" ”

As an employee, even if the KS&JR Fund does go bankrupt, it will be just a place for him to change his job. And for Cologne. For Stexon, it was the end of the world. Because of the different positions, Jack. Mullen after an initial period of frustration. The mood soon improved.

"Did a miracle really happen?"

It was at this time that Cologne. Stitchon shouted as he pointed to the screen. "Oh my God, is this all true?"

Jack. Mullen and Williams. Roger was stunned for a moment, and the next moment they immediately got busy, and kept tapping on the keyboard to refresh the page, only to find a scene that shocked them.

The buy order of 30,000 hands is neatly hung on the five gears below 1065. 6000 hands per gear, an absolute big deal.

"It seems that there is a main force to enter the market and hold the current price!"

Williams. Roger touched his chin and said thoughtfully.

"I just don't know if they have the ability!"

Jack. Mullen smiled bitterly, a little not very optimistic about the other party. "The bears have already formed momentum, and in this case I don't know how much to invest in order to stop the decline. I'm afraid that this bull doesn't have this strength! ”

Generally speaking, when the price falls to a certain stage, there will be funds to enter the market to buy the bottom. Because maybe by this time, the price has met their expectations, maybe there will be a rebound in the future, or they may think they have the ability to stop the market from continuing to fall, in short, an inexplicable bullish main force has entered the market so unabashedly!

The bears in the market finally have an opponent!

With the opponent, it means that there is a chance to be taken over, and countless bears in the current market have poured out again, which is a good opportunity for them to escape, and the two sides began to trade quickly at the position of $1065, and the words such as multi-exchange, double-open, and multi-open frequently jumped out. It didn't take long for the first line of defense to be exhausted.

Immediately after that, the second line of defense was also lost, followed by the third and fourth......

Five minutes later, five lines of defense were broken, and gold prices continued to fall, quickly falling below $1,062 and now on the verge of reaching $1,060 and below.

At this time, there was once again a scene that shocked the entire market.

On the five gears of 1060.6, 1060.5, 1060.4, 1060.3 and 1060.2, there were once again sky-high buy orders. This time it is not evenly arranged, but an inverted pyramidal array. Among them, at the highest level of 1060.6, there are 30,000 buy orders, at 1060.5, 20,000 buy orders, and below are 15,000, 10,000 and 5,000 hands.

The total size reached 90,000 lots.

That's an insane number!

You should know that the average daily trading volume is only about 300,000 lots. That is, if this buy order is really filled, at least 90,000 lots will be swiped in terms of volume, which is close to one-third of the average trading volume.

In the face of huge pay orders, many people began to hesitate.

You must know that when this happens, it is definitely the main capital that appears. This means that there is a huge divergence in the market's perceptions. For the followers, there is now an opportunity to re-choose.

And for the main bears, they don't care about these, holding huge profits hostage, and they rush in as soon as they can. At the position of 1060.6, a frantic fight with the main force of the bulls began.

Despite setting up a line of defense above, the bulls do not seem to have changed the direction of the market much, and short and long open orders are still pouring out like a tide. Even if a large number of buy orders are thrown again now, the formation of the inverted pyramid seems to tell the market that if you can break through this line of defense, the main bulls will give up completely.

Naturally, the bears are also well aware of this, and they know very well that as long as the first line of defense is breached, the defense line below is basically like a void. So the bears barely left the market any time to think, and launched a tough battle against the bulls' defense.

The buy order of 30,000 lots hung there, disappearing at a speed visible to the naked eye, one moment it was more than 28,000 lots, but the next moment it jumped to 27,000 lots. This rate of consumption is carried out at a rate of almost 1,000 hands every five seconds. Soon, about ten minutes or so, the first line of defense of the bulls was swept away again.

But when it comes to the second line of defense, things are immediately different.

The followers and liquidations in the market have basically achieved their purpose. Among them, the liquidation order, successfully closed the long position on hand, at this time they want to make a profit as soon as possible and earn back the original floating loss. As for the followers, the new short positions they finally opened have steadily earned the floating profit in their arms by this time, so what to do in the future has little to do with them. In this case, they will choose a direction that will win.

There is no doubt that the bulls are valued by them for their strong financial strength.

For the main bears, they managed to break the first line of defense, and their own losses were huge, because the newly opened positions required a lot of money. Originally, they still planned to rely on the power of the follower, but they soon found that the follower fell to the opponent's side.

The most important thing is that on the next line of defense, there are 20,000 buy orders, which is not much less than the line of defense just now. However, at this time, the bears can only continue to attack downward.

Obviously, the bears' attack was almost the end of the crossbow, and after ten minutes, the winner was truly decided. I saw that this line of defense was as stable as Mount Tai, and although the bears invested a lot of troops, they still could not shake the bulls.

The day's market set the tone.

Then there was an interesting scene, the bulls did not seem to have any intention of attacking upwards, but the followers who bet on the right direction began to eagerly attack upwards. As a result, the main force of the bears who were waiting for him was taught a hard lesson, and in the end, the price of gold only rose slightly by $3, and it no longer went up.

On this day, the COMEX gold contract fell by a full $49.1, or 4.41%. It's a dark day for many funds, with a massive drawdown in their net worth. And for some other funds, they feel very fortunate because this decline has brought them quite a bit of wealth.

In the process of transferring wealth, many small institutions have disappeared forever, including small but aggressive funds such as KS&JR. But for Cologne. For Stexon, the final closing price was also a boon for him, because he still had a surplus of several million dollars after the forced liquidation of his position, and it was not a total loss.

So much so that after the closing, he said happily: "No need to go to court!" ”

In short, in the history of gold trading, it was nothing more than an uneventful day! (To be continued.) )

PS: Thank you book friends Sonn Tianzi, hhr111, and dickvcxz for voting for the monthly ticket! Thank you electromagnetist for your continued tipping! I am glad to see new faces voting for it, the author expressed his gratitude, and hopes that more and more book friends can actively vote, and the results of this book need everyone's joint efforts!