I inherited a family fortune of 5000 years

Chapter 639
In Shanghai’s exchange rate market, the market has only opened for 5 minutes today, and dozens of huge short-selling orders were dropped without warning.

What is the concept of short selling or short selling?

For example, the current exchange rate of Huaxia currency is 7, and you predict that it will fall to 7.1 soon, and then you exchange 100 US dollars for 700 Huaxia currency. During this period of time, you can get the interest of the 700 Huaxia currency.

Then the exchange rate successfully dropped to 7.1 according to your estimate, and you can use 700 Huaxia coins to repurchase $100. The 10 Huaxia coins plus additional interest are your net income.

As for doing more, it is an opposite operation.

But this short-selling operation is not easy to do. If the exchange rate of Huaxia currency starts to rise during your short-selling period, then you will lose money. The more Huaxia currency rises, the more you will lose. more serious.

This requires you to have a strong enough operation and strong enough economic strength to suppress the exchange rate, then the money is almost equivalent to free money.

But if your capital is not strong enough, and your trader does not have such a powerful operation, then whether you owe money or make money depends on the face of the market and the face of other traders. Only "prophets" can earn this kind of unknown money.

A few years ago, this kind of short-selling operation was prohibited in the Huaxia market, but because the transaction is becoming more and more flexible now, this kind of operation was also opened up a few years ago. Some institutions will use this method to make a little money. But their power is not strong enough, whether to rise or fall is still the country's final say.

So even if they really made money, it was just a blind cat meeting a dead mouse, which happened to conform to the currency policy of Huaxia currency.

"Someone sold short orders as soon as the market opened?" A trader skillfully checked those orders, but the terrifying amount of these orders made his hands tremble violently.

A total of 24 short positions, each of which exceeds 10 billion US dollars!
24 strokes is 240 billion US dollars!
This market conducts foreign exchange transactions in almost the whole country, with an average annual total transaction volume of about 30 trillion US dollars, and an average daily transaction volume of about 1000 billion US dollars.

But the total transaction volume of this 1000 billion US dollars is the mutual exchange between various currencies. What is the total transaction volume?You sell to me, I sell to you, not a one-way transaction!
These 24 short orders, worth 2400 billion U.S. dollars, have already exceeded the daily foreign exchange reserves of their exchanges. After all, under normal circumstances, who would suddenly place an order of 2400 billion U.S. dollars in a single order?Their reserves of tens of billions of dollars are enough to meet their daily business

"Everyone, come here, there is a problem with these orders!"

Such a huge short order means that the other party has a lot of dollars, otherwise it is impossible to place such a large order casually. In the trading market, the upper limit of leverage is 10 times, even if the other party uses If you operate with 10 times leverage, then the other party will have at least tens of billions of dollars in their hands!
Tens of billions of dollars of liquidity, even a country can not easily come out!
"It is possible that large international hot money is doing something!" Some experienced traders immediately developed a sensitive sense of smell.

"To be able to spend such a large sum of money to attack our foreign exchange market, this is definitely not ordinary international hot money!"

"Liu Xingyao, go and report, we may apply to use the bank's foreign exchange reserves at any time!"

"Team leader, is it necessary to be so nervous?" someone questioned.

"I suspect that these funds will definitely not be all the funds in the hands of the other party!" said Wang Chendong, an experienced team leader. He is close to 50 years old this year and has been in this industry for 25 years. He has experienced many economic crises. Is very sharp and most importantly he has a lot of experience!
"Under normal circumstances, if the other party has only so much funds on hand, they will definitely choose to do this kind of operation when the market is about to close, because at that time everyone's attention is often the loosest, whether it is foreign exchange or stocks, at this time the When the price is suppressed, it is difficult to make timely remedies on the same day.”

"But they directly revealed such a large amount of funds when they came up, which means they are telling us that this is just an appetizer, and they still have a larger amount of funds behind!" Wang Chendong showed an excited smile on his face. I haven't encountered such an opponent for a long time.

The $2400 billion short-selling order directly smashed today's Huaxia currency exchange rate by 500 basis points!
At 9:30, many foreign exchange investors were directly awakened in their sleep.

Many rich people make money through the exchange rate market, and usually there is a dedicated team to help them manage this wealth. They only need to contribute money, and all the money-making can be handed over to those professional institutions.

But just today, they had just logged into their accounts, and the shocking numbers made them panic.

"What's going on? Why did it drop 500 basis points at the beginning today? Millions of dollars in labor and capital just evaporated?"

"How does your organization work? I handed over my funds to you to operate. Tens of millions of dollars of funds only earned 200 million dollars a year, and now I lost all my money in one morning?"

"Mr. Zhang, don't worry. I'll call right away to inquire. It might just be an adjustment for today's opening. Maybe it will stabilize in a while!"

The account owners became anxious, and the exchange suddenly became full of enthusiasm. Calls came in one after another asking what was going on, and some people even opened their mouths to cancel the order and stop the loss. The scene became a mess.

The initial 500 basis point exchange rate decline was just the beginning and only a signal.

For example, if a company's stock market value declines, it largely means that the company's operations have problems and it is losing money. Anyway, it is right not to be optimistic about its development.The foreign exchange market is also a similar situation.

The way to deal with short selling is to go long. To perform such an operation, money is also needed!

Since the opening of the market, the current exchange rate has fallen to more than 800 basis points!The exchange rate market is not the stock market. There is a so-called limit up and down. As long as the momentum does not stop, it can keep falling!

In some countries, the exchange rate fell by as much as 40% in one day, which shows how serious the fighting in the foreign exchange market is.

"Immediately apply for foreign exchange funds from above, and start to go long, and we can't let them kill the exchange rate!"

"Yes!"

Dozens of traders in the group started working immediately, and dozens of long orders were also placed, and hundreds of billions of dollars of funds flowed directly into the foreign exchange market.

Sure enough, the downward trend of the exchange rate stopped quickly, rebounded to a drop of about 600 basis points, and began to rebound slightly.

Everyone breathed a sigh of relief, but they knew very well that the opponent's attack had just begun, and the next thing was the real war without gunpowder!

"Team leader, the Huaxia people have started to go long to counter our short-selling orders. It is 200 billion US dollars, and the exchange rate has begun to rise."

"They are starting to take the bait!" The head of the European branch smiled, "Although the order of 200 billion US dollars is not much, it is not bad to have a bite as an appetizer. Let's eat your billions of dollars first, and we will continue to play." Go!"

"Their authority can only use tens of billions of dollars at most. If they want to continue to increase, they will have to use the foreign exchange reserves of major banks. This can't be done in a few minutes, enough for us to do a lot of things!"

He immediately ordered, "Keep smashing!"

"Team leader! They smashed more than 20 short selling orders!"

"Continue to do more, if we don't have enough people, we will transfer from other groups!"

"Team leader, the total amount of these short selling orders has exceeded 5000 billion U.S. dollars. Our exchange reserves are not enough U.S. dollars!"

Wang Chendong's face changed suddenly, what a big deal!

(End of this chapter)