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

London Futures Market. Super VIP Room!
Dolson frowned as he listened to Smith reporting the situation. When he learned that Li Yi's people were secretly selling copper and aluminum futures contracts, he was shocked.

"Smith, are you sure they are selling futures contracts? Are you right?"

"Mr. Dolson, the person who directs the order placement is the female supervisor of Xingchen Company. She is fat and easy to recognize. You can't go wrong!" Smith said with certainty.

"This is impossible. Where did they get the contract from? When did they enter the market?" Dolson said angrily.

"This"

No wonder Dolson was so shocked. After Li Yi arrived in London, his people were secretly monitoring this guy.

But what he didn't expect was that in the past month or so, this guy had never been to the stock market or futures market.

The fat manager under him did bring people here a few times, but each time he just came to take a look, and did not take action, nor did he contact any brokers.

Therefore, Dolson and others always thought that Li Yi was waiting for the opportunity to enter the market.

When Li Yi appeared in the futures market today, he thought this guy had finally discovered a business opportunity and was ready to take action.

At the same time, Dolson is also preparing to pool funds to attack Li Yi. He can be said to be like a fish in water during this period. In just one month, he directly earned nearly 8 million pounds, which is a full 136 billion Hong Kong dollars.
Now he can be said to be very satisfied, having swept away the previous decline.

In short, Dolson feels like he's doing well again!
And he also believes that it is impossible for Li Yi to beat him on his home court.

However, what he never expected was that Li Yi was not here to enter the market today. He was cashing out and leaving!

At this time, Dolson finally figured out that Li Yi was not waiting for the opportunity to travel around, but had already quietly entered the scene, but he didn't know it.

"Snapped!"

A delicate coffee cup was smashed to the ground and instantly shattered into pieces.

After a while, Dolson suppressed his anger, and then said to an old man next to him: "Uncle Third, help me find out when this Chinese businessman acquired the copper and aluminum contract, and then find out what else he did. What else have you invested in besides copper and aluminum?”

The old man nodded, then picked up the phone next to him and dialed!
At this time, a blond beauty next to Dolson said: "Mr. Dolson, what should we do now? Do we want to lower the price of copper and aluminum?"

"No, you don't know that guy. Once he chooses to cash out and leave, it means that the price of copper and aluminum has basically come to an end. It makes no sense for us to enter the market to snipe them at this time!"

Then Dolson said again: "Tina, you have been investing in the futures market all year round and have a wider network than me. Help me keep an eye on these people. I have a hunch that things are going to change!"

Although Tina didn't understand why Dolson valued these Orientals so much, she listened to her young master's words and immediately nodded and said: "Okay, young master, I guarantee that every move they make in the futures market will be taken seriously." You can’t escape our eyes!”

"very good."

Li Yi on the other side didn't know that he had been targeted by Dolson. At this time, he was still reading the newspaper in the VIP room and waiting for the news.

Of course, with his character, he wouldn't care even if he knew.

After all, they are now cashing out and it can be said that the overall situation is decided.

Not to mention the mere Dolson, even if the family behind him were killed personally, it would be of no use.

Two days later!
In two full days, Pang Feiyan, Liang He and others successfully sold all 12 copper futures contracts and 17.9 aluminum contracts.

After calculation, their average buying price of copper was 1578 pounds per ton, and the average selling price was 1840 pounds, making a profit of 7.86 million pounds.

The purchase price of aluminum was 1167 pounds per ton, the average purchase price was 1380 pounds per ton, and the profit was 9.54 million.

In other words, by investing in copper and aluminum alone, they made a pre-tax profit of 17.4 billion pounds.At the same time, Zhang Qiusheng and others also submitted an application for spot delivery to the exchange, requesting three short sellers, including Sheffield United Steel Company, to deliver 1280 million tons of steel.

At this point, Li Yi's forced position war has taken the second step!

According to his estimation, the first stage of the squeeze will take at least four steps.

In addition to the first step of withdrawing funds and the second step of applying for spot delivery, there are at least two steps of margin call and contract repurchase or spot delivery!

Sure enough, not long after the application for spot delivery was submitted, people from the Sheffield company found Li Yi and others, hoping to redeem their short contracts at the current market price.

This is also the practice in the futures market. When the short side does not have enough spot for delivery, the contract can only be redeemed at the market price or premium.

However, what depressed Sheffield United Steel Company was that Li Yi, who held the largest order volume, decisively rejected their request, even if they were willing to pay a 5% premium, insisting on spot delivery.

Now, the pressure was instantly on Sheffield Steel Company!
After learning that the bulls insisted on spot delivery, Sheffield United Steel suddenly couldn't sit still.

You must know that their company's contracts expiring in late May include more than 5 million tons, but the company's spot inventory is only more than 1500 million tons.

In other words, if all bulls require spot delivery, they will have a gap of at least 800 million tons of steel.

Fortunately, the company has contacted some institutions and associations, and the other party has allowed them to redeem the contract at the current market price.

But the problem is that although there are many institutions and retail investors, the number of contracts they hold is only more than 200 million tons, and the remaining contracts of more than 200 million tons are in Li Yi's hands.

Knowing that the other party was determined to deliver spot goods, Sheffield Company could only collect steel while contacting the institution and requesting the institution to allow the bulls to increase margin, and for the first time, the margin call was increased to 30%.

You should know that there are generally two situations when margin calls are made in the futures market. One is when investors suffer large losses, and securities firms and financing institutions are worried about the risk of funds, so they will require investors to add margins.

Another situation is physical delivery. The short side is worried about problems with the settlement of the goods and requires additional margin. Sheffield Company belongs to the second type.

However, this type of margin call generally does not exceed 20%, normally only 10%.

Now they are asking Li Yi to directly increase the deposit by 30%, which is considered to be too much, and even a bit of a trick.

But there is no other way. This is London. As the most important partner of the futures market, the exchange readily agreed to the unreasonable request made by Sheffield Steel Company.

I have to say that playing at home is "what the hell" has an advantage!

Soon, Li Yi and others received a notice from the agency: Since the value of the expiring contract was too high, the exchange required Li Yi to add a margin of 30% of the total payment, and the deadline was three days.

If the margin is not in place within three days, their contracts will be forcibly closed by the exchange and re-enter the market.

People at Sheffield United Steel are also betting. After all, Li Yi and others have 1280 million expiring contracts with a total value of more than 40 billion pounds, and the 30% deposit is 12.13 billion.

In other words, Li Yi and others need to raise enough 12.13 billion pounds within three days before the institution will arrange for the short side to conduct spot delivery.

12 billion pounds is not a small amount. Sheffield Company bets that Li Yi and others cannot come up with 12 billion pounds in the short term.

But how could Li Yi, who had already laid a dragnet, let them achieve their wish? When digging the hole, Li Yi had already anticipated all the Sheffield Company's back-up plans, including the margin call.

Subsequently, Li Yi immediately ordered someone to hand over a 30% deposit.

When the news came, the senior management of Sheffield Company were instantly dumbfounded.
(End of this chapter)