The Son of Finance of the Great Age

  Chapter 194 The first positive line (1)

  LME trading rules are not a daily clearing system, and not all positions are cleared by the exchange, some brokerage companies can also settle, so Carl Fund does not need to consider the issue of liquidation for the time being.

   As a short seller, it is natural to hope that the higher the average price, the better, especially in the event of a loss. In the futures market, if there is a loss in the operation of a certain direction, then either stop the loss immediately and leave the market, or continue to increase the position, so as to increase the average price and reduce the loss. The first method is suitable for customers with small funds, while the second method is suitable for customers with large funds and plans to hold them for a long time.

Now Carl Fund has established a relatively large position. Under the situation of rising copper futures prices, Carl resolutely chose the second method. He asked traders to enter a short position of 1000 lots again at the position of 2740 US dollars, making the average price Pulled up to $2720. In this way, as long as the copper price falls to $2720, their position will start to make a profit.

However, the current copper price has soared to 2,750 US dollars. Carl Fund, from the top to the bottom, believes that the price of copper will fall in the opposite direction in a certain period of time in the future, so most of them are not particularly concerned about the current loss situation. care.

  However, Jerry also has his own considerations. He believes that even if the market will fall in the future, he must find a way to reverse the current loss situation. It's just that under the current situation, the fund has not reserved too much funds, because they have also made 500 lots of hedging orders, and the balance on the book can only be hundreds of thousands of dollars.

   "We must close the short positions around $2,700 as soon as possible, and then use the settled funds to buy short positions at a higher price to raise the overall price." Jerry said firmly.

"But..." A trader hesitated for a long time, and finally expressed his doubts, "If we operate according to what you said, then our positions will become smaller and smaller. Because every time we settle, we will lose money." A part of the funds, in turn, will reduce the positions established."

  He is right, because according to the current price, they will lose $750 for every contract they close. The original $10,125 has become $9,375, which is no longer enough to open another short position.

   "If it really doesn't work, we can only raise money through a brokerage company." Jerry thought about it for a while, but he couldn't think of a suitable solution after a long time. In the end, he could only pin his hopes on the brokerage company that provided leverage.

  Hearing that the leverage will be increased again, almost all traders can't sit still. They already felt that the current leverage was a bit too high, but after calming down and thinking about it, they found that there was really no other way to go, and they couldn't help but fell silent one by one.

   "How about we close the current short position and go long with a backhand?" In the dead silence, a weak voice suddenly sounded.

  Everyone was stunned for a moment, and then they all looked at the speaker, and found that he was a junior trader who had just joined the company. They couldn't help shaking their heads, didn't say much, sighed in twos and threes, and then went about their own business.

"Why, am I not right?" The trader named William saw that the traders who were sitting around and discussing had dispersed, and he didn't understand what happened. In front of Rui, he asked very puzzled.

Jerry looked at William with an expectant face, sighed deeply in his heart, and then patiently explained: "If we close all short positions and go long instead, then we have to adjust the entire strategy. This requires a particularly convincing reason to convince Carl, our big boss and senior partner."

   "It's not easy, you don't see that we are losing money now, and will the rising price of copper futures end in a while?" William asked with some wonder, "Isn't this reason sufficient?"

"Didn't you attend the last strategy seminar?" Jerry suddenly felt an unknown anger rising from his heart, and his words became rude, but then he remembered that a junior trader like William was not eligible to participate In this kind of discussion meeting, he couldn't help softening his tone, and continued to explain, "According to the results of our collective discussion, everyone agreed that at a certain point in the future, the price of copper futures will fall. This is an internal consensus, and we also It is operated according to this idea. This is the result of internal analysis, and you must not disclose it to the outside world!" When he said this, Jerry's voice was already stern.

   "But what if our analysis result is wrong?" William couldn't help but become a little embarrassed, but after a while, he changed the subject and asked about a huge heart disease that had been hidden in Jerry's heart.

Jerry's complexion changed immediately. He changed his mild tone before, and reprimanded him severely: "You are just a small junior trader, just do your job well." , and left the trading room without looking back, leaving only a bewildered William.

  …

November 16th, the third Wednesday of this month, this day is the day when November options are executed. Usually, the market will not have a flat market on this day and the next two or three trading days. not excluded.

   "Mr. Zhong, how should we operate?" After experiencing the personal operation yesterday, several traders were completely convinced by Zhong Shi. When they took their seats, they immediately consulted Zhong Shi about his attitude.

   "Of course it is long, and this day will increase significantly, the higher the better." Zhong Shi nodded to them and said without hesitation.

   "What about the magnitude?"

   "The specific price?"

   "What about positions?"

Zhong Shi looked at these people with expectant faces, waved his hand to signal them to stop asking questions first, and then said: "Gentlemen, you should also know that our options are about to be exercised today. One side has to open the other side of the market, because our position is a bit big, so the price of copper futures will inevitably rise. What we are doing now is adding fire to this momentum, understand?"

"5,000 options contracts are converted into futures contracts, and our overall position has reached 30,000 lots. Our goal today is to buy 10,000 lots of bullish contracts, and then close 10,000 lots in the process of pulling up, so as to maintain our The position will not be too large. As for the specific price, operate according to the current market price."

   "Okay, gentlemen, it's time for trading soon, everyone take your place!"

Hearing the operation goal of 10,000 lots, several traders were dumbfounded, but there was not much time left for them to be shocked. Several people sat in front of their seats with dazed heads, trying hard to digest this surprise that surprised them so much. transaction order.

As soon as the market opened, the copper price opened higher at $2,778, which was obviously a positive signal, but then a large number of selling appeared in the market, and the price was suppressed to $2,770 in a few minutes. Neither long nor short Yinxian.

   "What's going on here?" Several traders hadn't had time to get through to their brokers, and the changes in the market had already made them lose confidence.

  If the price of copper futures falls today, it will be very difficult for them to pull up, and the strategy Zhong Shi just decided needs to be changed.

   "Don't worry about it, you continue your own operations, this is the behavior of the bears to confuse the market." Zhong Shi said calmly without looking at the changes on the computer screen.

  In just a few minutes, the price of copper futures will be suppressed to close to 10 US dollars, which will inevitably lead to a surge of follow-up orders. At that time, there will be more buying in the market, and they will take the opportunity to close their positions at this price or lower. This is a trick of the sellers of bullish options. Because they sell bullish options, they must open a corresponding short position in the market. The purpose of making this gesture now is to take the opportunity to close the position and stop the loss at a low position.

Just like Zhongshi’s judgment, a large number of buying orders suddenly appeared at the position of 2770 US dollars, and when the price of copper futures was about to go down, the price was firmly nailed at the position of 2770 US dollars, and all the selling orders gathered here were quickly swept away. Cleared, and then the spot copper price attacked upwards, and all the sell orders below 2780 were also cleared.

   All of this happened within five minutes, and the sudden market situation made most investors unaware. After they reacted, the short sellers had already sold nearly a thousand short positions, which reduced the positions of some short sellers a lot.

   "Sell 1,000 lots, push the price to $2,790, and let the follower market see the situation clearly!" Zhong Shi watched this scene extremely calmly, and ordered immediately after the growth rate of trading volume began to slow down.

   Several traders had just experienced the sudden change in the market, and their minds were still in shock, and they didn't react for a while. Seeing this situation, Zhong Shi couldn't help frowning, and suddenly shouted: "Open 1,000 more lots, order at market price, now! Immediately!"

  A loud noise immediately pulled the minds of several traders back. They immediately picked up the phone, dialed the broker, and quickly issued a trading order.

   It is the right time to enter the market at this time. Followers are still in doubt, and the market volume is shrinking rapidly. The 1,000-lot buy order entered the market, and consumed most of it around $2,780, blocking the bear's intention to suppress copper futures again, and then immediately attacked upwards. At this time, the power of the market price order is displayed. This order method that changes with the fluctuation of the market price immediately clears the limit order orders around here, and the price of copper futures rises to around 2,790 US dollars in one fell swoop, and there is even room for an upward attack. .

   "The price limit of the remaining orders is 2,790 US dollars. Hold this line of defense first." After Zhong Shi saw that the price had risen to the predetermined position, he began to slow down the intensity of the upward attack.

But before he finished speaking, there was another upside buy order in the market, which raised the price of copper to around $2,800 in almost a minute. What was even more surprising was that the short defense of integer points only resisted After three minutes, it completely declared its fall, and the price of copper futures officially rose above $2,800.

"Zhong Shi, how should we operate?" On Peter's side, the option has been completely converted into a copper contract. I believe that other bullish option contracts have also been executed. It goes without saying that the current market changes are the result of this long pull up.

   "Close 1,500 lots, and stop closing positions when the price reaches 2,800 US dollars. I want to see if the bulls can support 2,800 US dollars." Zhong Shi quickly ordered the next second when he saw that the price exceeded 2,800 US dollars.

   Thank you very much for the two monthly tickets of book friends Waiting for the Moored Wind and BJ Fahai! At the same time, thank you for your rewards thousands of times!

  (end of this chapter)