Rebirth 1980: Marrying my sister’s best friend at the beginning

Chapter 589: Position opened!

The company has a major customer with an investment of more than 20 billion U.S. dollars, which naturally attracts the attention of Sharp Pixley's management.

After all, it is really rare to see customers with such a high investment amount, not to mention foreign customers, so they must be treated with caution.

If the cooperation is pleasant, it will be a living advertisement, which will bring many benefits to their company.

But this involves a huge amount of US$80 billion. Although there is a forced liquidation system, the risk is not great, but it does not mean that there is no risk.

For example, take the long position as an example. The originally set liquidation price was 10, but because the price suddenly plummeted by half, it passed the warning price in an instant. So the liquidation price they set at this time cannot afford it. It works half way.

At this time, of course, investors will lose all their money, and brokers will also be unlucky. One order may plunge the company into an abyss of no return.

Because of this, they must conduct strict review for such large customers with extremely high financing amounts.

If the qualifications are not good, they will never cooperate with you.

But after all, the customer in front of him is a large customer with an investment of more than 20 billion. If there is an opportunity, neither Billy nor the senior management of Sharp Pixley Company will miss it.

Therefore, company executives immediately held a meeting to discuss the matter.

After some discussion, they decided to first review the financing application submitted by Li Yi and others, mainly to review the identity and other qualifications of their team.

But when they saw the company behind the team, Sharp Pixley executives breathed a sigh of relief.

Far East Stock Exchange!

One of the four major exchanges in Hong Kong, behind it is the famous Li family in Hong Kong, and the young man leading the team this time is not only the brother of Li Fukiao, the founder and major shareholder of Far East Exchange , his only son Li Yunbao and his close assistant also came.

More importantly, the US$20 billion in funds for the team's operations has been dispatched here through formal channels and can be called at any time, and there is a certificate from Morgan Bank.

Because Li Yi and others were very well prepared, the relevant departments of Sharp Pixley Company directly gave excellent evaluation results after strict review.

The company's executives immediately approved the cooperation after reading the results of the internal evaluation.

Subsequently, Sharp Pixley sent a high-level vice president to come forward and formally signed a financing cooperation agreement with Li Yi.

According to this agreement, the Far East Stock Exchange used US$20 billion as a margin and borrowed US$5 billion worth of gold futures contracts from Sharp Pixley Company with 100 times leverage. The annual interest on the funds was calculated at 6%, and the interest calculated on a day-to-day basis.

After signing the agreement, Li Yi quickly transferred the funds into the designated account, and then waited for Sharp Pixley's futures contract to be in place.

There is no doubt about the strength of Sharp Pixley Company. In just one night, gold futures contracts worth tens of billions of dollars were already in place.

The reason why it is so fast is not that Sharp Pixley Company really has tens of billions of dollars worth of gold, but because they are professional in doing this and their strength is there.

Of course, the more important thing is that this is New York, which has the world's largest gold futures trading market. In this huge market, the average daily transactions are about 3, and the trading volume is about 70 tons of gold.

Moreover, most investors are not pursuing the actual delivery of gold at maturity, but rather making profits through short buying and selling of contracts. The market only needs to maintain a certain amount of inventory to cope with a small number of people accumulating a large number of contracts and running on gold.

For example, last year's New York and Chicago gold market accounts showed a total of 800 tons of property transactions, but the actual inventory was only 79.3 tons. Although it was less than one-tenth, it was enough to meet the needs of the market.

Because of the huge number of gold futures transactions in New York, the gold price in the New York market is sometimes more valuable than the pricing in the London and Zurich gold markets. On the morning of November 11, after receiving a call from Billy, the investment manager of Sharp Pixley Company, he learned that they had borrowed all the gold futures contracts. Li Yi immediately took Li Yunbao and Lan Xinyi with him. The others and George's team drove to Wall Street!
In the VIP room of Sharp Pixley Company, Li Yi met Billy again.

Compared with yesterday, the Billy in front of him was more capable and serious, because now he and his team are also serving Li Yi.

After signing the cooperation agreement yesterday, Li Yi designated Billy and his team as their execution team for this transaction. This is his right as a customer.

In other words, counting Billy and others, Li Yi now has a total of three teams: the Hong Kong team headed by Lan Xinyi, Cai Bingyan and others, the George team of Green Brothers Company, and the Sharp Pixley Company Team Billy.

Among them, Lan Xinyi and others are mainly here to learn. Their task is more to serve Li Yi himself. In addition, they are responsible for communicating with the local team.

George and others were invited by Li Yi to provide service consultation and supervise the team of Sharp Pixley Company, while Billy and his team were the ones actually responsible for the capital operations.

The reason why two local teams were hired to serve them was not because they had too much money and no place to spend it, nor was it for ostentation. It was mainly because Li Yi couldn't trust these ghosts.

This is a sneak attack on someone else's territory, and they still have such a large sum of money in their hands, so they can't be careless!
The most important thing is that neither Li Yi nor Lan Xinyi, Cai Bingyan and others are particularly familiar with local trading rules.

And futures trading is a very risky investment method. If you are not careful, you will really lose your money, especially gold futures.

We must know that the current pricing power of gold in the world is mainly dominated by the Thieves and European markets.

After all, even the main formation of international gold prices comes from gold contracts on two major exchanges: gold futures on the New York Mercantile Exchange, and spot gold prices on the LBMA London Bullion Market Association.

Among them, gold on the New York Mercantile Exchange has the strongest influence on world gold pricing.

As for gold exchanges in other places, the trading volume of spot gold is not low, but their say in pricing is almost zero and can be ignored.

Under such circumstances, Li Yi wants to invest in gold futures here, whether it is short or long, there are risks.

If such a large sum of money enters the market and is targeted by some financial giants who specialize in blocking it, the consequences will be disastrous.

Because of this, when choosing brokers, Li Yi only chooses those with good reputations, not those with high financing leverage and low financing costs.

He didn't want to lose his coffin for a lollipop!

The purpose of inviting two teams is to allow them to supervise and restrict each other to better complete this investment.

After confirming that all funds were in place, Li Yi immediately issued the order to open a position.

Opening a position is a key step in futures short selling and an important process in futures trading.

When opening a position, investors must determine the futures contract to buy or sell based on their own analysis results, and issue a quotation in the futures market to complete the transaction.

At the same time, during the process of opening a position, you must determine the investment amount based on your own risk tolerance, and reasonably control the number of transactions to avoid exceeding your risk tolerance.

In fact, this is similar to the previous short selling of the Hang Seng Index. It is the same recipe and the same routine. First sell the borrowed futures contract, wait until the international gold price drops, buy it back at a low price and return it to the broker.

But when Billy, George and others heard Li Yi's exit price, everyone was stunned.
(End of this chapter)