章節 862: Chapter 862: Huge Floating Profit
'The opening price of advanced copper futures is US$0.8325/lb!'
'The opening price of aluminium futures is US$1.6815/lb!'
Song Yang said happily in the Galaxy Fund Operations Room.
Although the boss himself is also here and can see the data as well, he still likes to read it out.
These cold data seem so lovely to him, and his heart seems to fluctuate with them. Every time the data jumps up, his mood becomes more excited.
'Compared to last weekend's closing price, high-grade copper futures jumped 5.98% at the opening, and aluminium futures jumped 5.78% at the opening.'
'It's quite reasonable for it to explode after being suppressed for two days. Calm down, it's still early!'
Xia Yu said with a faint smile on his lips, speaking neither hurriedly nor slowly.
His voice seemed to have a kind of magic, soothing Song Yang's somewhat agitated mood. The latter's smile slowly faded, and he took a deep breath and nodded: 'You're right.'
After a few seconds of silence, Song Yang couldn't help but ask curiously, 'Boss, so when do we start withdrawing?'
Xia Yu's gaze returned from the ever-rising data, glanced at Song Yang, and after a moment of thought, said, 'There's no rush. Wall Street capital is still entering the market. They won't leave without making a profit. Let's wait and see for another two weeks, and then act when the opportunity arises.'
Although the market was in chaos, Xia Yu's mind was clear as a mirror. His gaze saw through the somewhat chaotic market and saw the most essential thing.
The capital market is a game of big fish eating small fish, with players of all sizes filling the market. Generally speaking, it is the big fish that eat the small fish, and the small fish that eat the shrimps, but nothing is absolute, and it is hard to guarantee that the small fish will not suddenly turn into a shark.
In the early stages, the bulls led by the Milky Way Fund and the bears led by the Philip Brothers Company had already filled the gambling table with mountains of US dollars.
Now, various financial institutions have poured in, making the US dollars on the table even more numerous.
No one can tell when the game will end. Perhaps everyone is hoping for a lucky break and trying to be the last one standing to reap the biggest profits.
As the prices of high-grade copper and aluminium futures continue to rise, some conservative institutions will surely withdraw, while others who were initially calm will become envious and jump in.
In this game of passing the baton, the losers will be the short sellers who lose their positions and the last ones to buy in, while the winners will be the institutions that withdraw in the early or mid-term.
However, the institutions that exit in the early and mid-term will definitely not make as much money as those that exit in the mid-term and late-term.
If you want to make more money, you have to take greater risks. Risk and profit are always proportional.
However, no matter how these institutions play, they cannot avoid Xia Yu's side. The initiative has always been in Xia Yu's hands.
Only when he started to liquidate his positions did the game start to falter, and it was only when a stronger banker came along that the game was able to continue.
According to statistics, the Jiuding consortium, which includes Galaxy Fund, Island Kingdom Jiuding Securities Company, and London Guangming Fund, already controls more than 50% of the copper and aluminium futures contracts in the market.
Together with the Howard family and their ally Sumitomo Corporation, Xia Yu's camp already controls more than 65% of the futures contracts in the global market, and it may even reach 70%.
Although it is not comparable to the Hunter family's peak data of controlling 90% of the global silver futures contracts, combined with the amount of spot goods controlled by Xia Yu, the influence is not inferior at all, and it is even better.
Previously, when the Hunt family manipulated silver futures, they were limited by capital and mainly played low-cost futures contracts. The proportion of control over the spot market was quite low, only a few percent, so when the spot market later became chaotic, they lost control and destroyed the futures market.
With this as a warning, Xia Yuke is much more cautious.
Just buying the spot market has already cost him more than 5.5 billion US dollars, with 1.12 million tons of copper and 1.34 million tons of aluminium purchased.
Although the metals are still in the warehouses of various mining companies, the spot trading contracts have already been signed, and the metals already belong to him. No company would dare to take the risk of facing the threat of huge liquidated damages.
Time flies. Two weeks have passed in the blink of an eye.
On Monday, the stock and futures markets opened on time.
As expected, the prices of high-grade copper futures and aluminium futures jumped at the opening bell, reaching 1.2145 US dollars per pound and 2.4680 US dollars per pound respectively.
The prices of these two futures have more than doubled since Xia Yu went long, and the market has become extremely crazy.
The futures market is often leveraged ten or even dozens of times. An institution that successfully entered the market two weeks ago and spent 20 million US dollars as margin would now have a floating profit of at least 90 million US dollars, which is more than a fourfold profit!
There are not many financial institutions with annual profits of over 100 million US dollars, even in New York.
Think about the Philip Brothers company, which originally had a market value of over 4 billion US dollars, but its annual net profit was less than 300 million US dollars.
Therefore, in the face of such crazy profits, not many institutions can remain calm.
It's a wolf pack frenzy!
It's just that the short positions led by Phillip Brothers are going crazy. With the futures prices soaring, they have to keep replenishing their margin, and at the same time join the scramble to forcibly close out positions.
The shorts were previously selling contracts, and now they need to buy back an equivalent amount of futures contracts in order to close out their positions.
Although it is said to be forced liquidation, in the face of the already crazy market, every sell order thrown out is like a piece of delicious meat, attracting countless wolves to scramble for it. It is difficult for Phillip Brothers to grab the contracts even if they want to close the position.
Phillip Brothers has sold too many contracts before, and now it is difficult to close the position.
In view of this situation, Philip Brothers had to adopt other methods, such as buying spot contracts and then looking for institutions that want to convert cash into futures to convert spot contracts into futures contracts to close out positions.
This method further promotes the soaring spot price.
Although major mining companies are still producing copper and aluminium, they are still in short supply in the face of broad market demand.
Monday morning break.
When Xia Yu saw that the share price of Philip Brothers was fixed at 8.25 US dollars a share, with a market value of 1.2375 billion US dollars, he smiled.
Although Philip Brothers had been covering up the lid to prevent the outflow of real data, there were too many elites on Wall Street, and they had already estimated Philip Brothers' losses.
A conservative loss of one billion US dollars!
This was the estimate of many institutions for Philip Brothers, and this estimate was unanimously approved by the majority of institutions.
With such a huge loss, the stock of Philip Brothers has become a junk stock. There are only sell orders in the market, and no one dares to buy.
Even if the market value has fallen from the peak of 4.173 billion US dollars to the current 1.2375 billion US dollars, and the market value is about to evaporate by more than 3 billion US dollars, the downward momentum is still unstoppable.
If you do the math carefully, Jiuding Securities has made a profit of 630 million US dollars shorting Philip Brothers!
And this is not the end. As long as the stock price of Philip Brothers falls, the greater the profit for Jiuding Securities.
However, Xia Yu is not too greedy and knows when to stop.
'Toby, when the market value of Philip Brothers falls below one billion U.S. dollars, we will start. Just buy enough shares to repay the institutions that we have bet against. There is no rush to buy at the bottom price.'
Xia Yu commanded Toby Morton, who was standing next to him, after taking his eyes off the fixed price.
Toby Morton was taken aback. Looking at Xia Yu's deep gaze, his mind raced with a thousand thoughts, and he nodded in response, 'Yes!'
'I'll go first, and you can probably go off duty as well.'
With that, Xia Yu turned and left.
Watching the figure of his boss Xia Yu leave, Toby Morton contemplated, trying to figure out his boss's true thoughts.
'Didn't the boss want to acquire the Philip Brothers Company? Has he changed his mind again?'
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