The Rebirth of the Financial Hegemon

The next day.

Since Hongxiaodou has reached its daily limit for three consecutive times, all positions in the Hongxiaodou 9602 contract were forced to be liquidated according to exchange rules.

Rules for forced liquidation.

When a short position reaches the daily limit for three consecutive times, it can close its position at the daily limit price.

If there is no transaction on that day, as long as there is a liquidation buy order on the third daily limit board, the exchange will be responsible for finding the long position with the most profit and force settlement and liquidation according to the daily price limit.

The same goes for closing long positions.

This is considered a protective measure.

The first is to protect the relevant futures companies from suffering too heavy losses, and the second is to protect the failed party from suffering too tragic a death.

Because according to the trading rules, the funds for customers' short-term liabilities temporarily need to be advanced by the futures company.

Subsequent liabilities to customers belong to the futures company.

During the forced liquidation of administrative intervention by the exchange, the open interest in the Hongzhongdou 9602 contract dropped sharply.

But this also means that it is time for the bulls to reap the fruits of victory.

Closing in the afternoon.

The four main bulls gathered together.

In addition to celebrating this big victory, they are also discussing their next steps.

Forced liquidation does not mean that the position will be liquidated completely. Based on the current trend of Hongxiaodou, there is still a lot of room for growth in the future.

As long as it is done properly, it is not a problem to raise the price to 6,000 to 7,000.

Now the short sellers in the market are in a state of panic.

Whether they are spot traders or retail investors, they are like young generals whose courage has been broken.

Even the three major short sellers have been killed, and these short sellers will definitely become frightened birds.

In this case, as long as there is a slight change in the market, anyone who dares to short-sell later can be killed without leaving a trace.

No one in Wei Zexi's group is good at it.

This kind of opportunity to pursue victory,

How could he let it go?

"We will keep the price near 4,500 for a while, and then slowly close it after new shorts come in."

"Now, all the short sellers inside are probably dead, and they will probably have to survive for a few more days."

"Don't worry, the market will never lack fresh blood. After it has risen so much, those who should be short will still be short."

Suddenly, Wei Zexi suggested.

"How about we dig another hole, dump the spot stocks in our hands first, suppress the market, and then clean up the retail investors inside?"

Futures are bilateral transactions. As long as you have enough funds, you can kill all the shorts and all the longs.

The method mentioned by Wei Zexi can be said to be a very good method.

As long as you use the spot goods in your hands to impact the market, you can drive the price down again.

Now the bulls inside are full of momentum.

As long as it hits it, it will kill a series of people who follow the trend and do long.

With the cooperation of several major forces, it is easy to eliminate those stragglers.

With the current control of the spot market by the four joint players, if they want to impact the market, they only need to sell tens of thousands of tons of spot goods at low prices.

It can knock the price of the spot market into pieces.

Coupled with their positions in the futures market, these guys can completely control the rise and fall of red bean prices.

The spot is in hand and there are a large number of positions in futures.

That’s not to say that if you want to kill the longs, you can kill the longs, and if you want to kill the shorts, you can kill the shorts.

After killing the bears, kill the bulls, and after killing the opponents, kill the teammates.

If you want to go short, you only need to hit the market with spot stocks, open a few more short positions, and then close some of the long positions in your hand, and you can kill the long positions in pieces.

When the long positions are almost wiped out, you can continue to collect cash and close the short position to go long.

Under Zhao Jiangchuan's lock-up trick, it was like a new world of making money was opened to the other three.

With the funds in the hands of a few people, they can do whatever they want in the market.

"Xiao Wei is right. As long as we four brothers join forces, then the entire capital market will not be dominated by the four of us."

"Haha... Lao Tang is right. Brothers work together to break gold. The world in the future will definitely be our world."

The huge gains in red beans made Wei Zexi, Ye Tan and Tang Wannian very high-spirited.

But they didn't notice that Zhao Jiangchuan's eyes were somewhat disapproving.

For this guy, the country is simply not the soil for capital growth.

If they dare to keep playing like this, they will be destroyed sooner or later.

No matter how powerful the means, no matter how huge the funds are.

If someone wants to destroy them, it won't be a matter of minutes.

If it grows too fat, it becomes a pig.

New Year pigs can be slaughtered at any time.

It only takes three or five big characters to turn them into gray.

However, Zhao Jiangchuan didn't say anything. These guys were in the mood, so there was no need to ruin their mood.

"We four brothers were successful when we united for the first time. How about we take a group photo as a souvenir? It will be so interesting when we look back in the future."

"Okay, what Lao Tang said makes sense. When we have good times and bad times in the future, we will look back at today and see how beautiful it was."

"……."

At Tang Wannian's suggestion, Wei Zexi actually ran to get a camera.

This gave Zhao Jiangchuan an extremely weird feeling.

He really didn't expect that the major tycoons in the future domestic market would gather together on this day.

I never thought that one day I would be on the same page as these guys.

It's just that everyone is in high spirits right now, and it's really hard for Zhao Jiangchuan to disrupt the situation.

He could feel that at this moment, the words of these people were coming from the bottom of their hearts.

The smile on Ye Tan's face, Tang Wannian's eyes narrowed in laughter, and Wei Zexi's unabashed enthusiasm.

There is no intrigue, no conspiracy.

Some are just comrades who have fought together, and some are just the most sincere sincerity.

A bit ridiculous.

But Zhao Jiangchuan couldn't help but reveal a smile on his face.

This feeling is actually quite good.

"Miss Ouyang, can you take a photo for us?"

"OK!"

Ouyang Lan took the camera Wei Zexi handed over and began to play the role of photographer.

Polaroid, point-and-shoot operation.

Zhao Jiangchuan and Wei Zexi are younger and in the middle. Tang Wannian and Ye Tan, who are a bit older, are on each side.

When the four people got into position, Ouyang Lan shouted.

"Remember to call me Eggplant later."

The little secretary's words made the others laugh to no end.

But he nodded in agreement.

"eggplant."

"eggplant!"

"Click."

Ouyang Lan pressed the shutter in her hand.

In the flash, time seems to be frozen in the picture.

After filming four consecutive chapters, Wei Zexi started to boo.

"Jiangchuan, don't you get along with Miss Ouyang?"

"Yeah, you two want one too."

Zhao Jiangchuan didn't show any pretense, he hugged Ouyang Lan into his arms domineeringly.

Ouyang Lan was extremely shy, and she was very embarrassed to be teased by so many people in public.

But after being embraced by Zhao Jiangchuan, she blushed like the quietest cat.

That broad embrace made her infinitely nostalgic.

"Click."

After a flash of lights, a photo of the two was saved.

"One more, and this time I want to kiss it."

"Kiss, kiss..."

"Ha ha…"

Amid the cheers of the crowd, Zhao Jiangchuan did not hesitate, hugged Ouyang Lan and kissed her as she wanted to run away.

"Click."

"Ha ha…."

The forced liquidation of exchanges is a harvest day for bulls.

But for the shorts, liquidation means that the longs celebrate the New Year in advance. They act like pigs and are slaughtered.

Including short sellers and hedging spot traders.

Zhou Xiaobing is from Hubei.

In his early years, he was a second-rate dealer in the purchase of grains.

Driving a tricycle in the countryside, collecting some agricultural miscellaneous products such as peanuts, corn, sesame, peppers, and soybeans.

With his hard work and hard work, Zhou Xiaobing's business is booming.

In addition, people are bold enough to play with fake scales and cheat on goods.

Over the past few years, Zhou Xiaobing's business has grown bigger and bigger.

Big business is no more important than going to the countryside to fool farmers. It requires credibility.

So later Zhou Xiaobing changed his ways and Zhengerbajing opened a agricultural and miscellaneous purchase station.

Traveling around a lot when he was young, Zhou Xiaobing made many business friends. With this network, Zhou Xiaobing's agricultural and miscellaneous purchase station opened smoothly.

Grain is relatively large in quantity. It costs just a few cents per kilogram, but it cannot hold tens of thousands of tons of goods at a time.

After a long period of exploration, Zhou Xiaobing cut down the capital-intensive varieties such as corn and peanuts.

Specialized in red bean business.

Only by being dedicated can you build a reputation.

Sure enough, Zhou Xiaobing's approach was correct.

A few years later, Zhou Xiaobing became the largest red bean trader in central China.

But business is a mouthful of honey and a mouthful of shit.

No one knows whether the price will rise or fall.

When the price goes up, you will naturally make money by collecting and squeezing goods. However, when the market is not good, you will accidentally have to invest your capital.

By chance, Zhou Xiaobing heard about something called futures, which could avoid losses caused by falling prices.

After having an in-depth understanding of futures hedging, Zhou Xiaobing gave it a try.

Once I tried it, it really happened.

As long as the price reaches a point where you can make money, you can lock in the profits through futures.

This is simply specially prepared for spot dealers.

If the price falls, you can make money on futures.

When the price rises, the spot goods in hand can be delivered, or sold at a high price to offset losses in futures.

No matter how you calculate it, it's a sure profit.

With the hedging tool of futures, Zhou Xiaobing no longer has the worries he had before.

This year, he collected more than 30,000 tons of spot goods.

But Zhou Xiaobing didn't expect that the price of red adzuki beans would plummet this year.

It has been falling steadily since the beginning of the new year.

Fortunately, Zhou Xiaobing took a short position in futures early to prevent risks.

So, there is no big loss.

Even when the price of red beans dropped to 2,000, Zhou Xiaobing didn't lose much money.

This made Zhou Xiaobing secretly happy.

The drop in prices caused many spot dealers to suffer huge losses.

Some spot dealers had to sell the goods they received at a high price at a low price after their capital chain was broken.

Some even had to close their doors because of losing money.

Not every spot dealer understands finance. There are very few people who have heard of new things like futures.

Those who did not hedge their positions would only lose money as prices plummeted.

Having fewer competitors is naturally a good thing for a business person.

But Zhou Xiaobing never expected that with complete risk defense measures in place, he would not be able to avoid bankruptcy in the end.

At the end of November, Zhou Xiaobing opened 10,000 short futures orders to hedge his spot holdings.

Everything is the same as before.

But since the last few days of December, the futures market has suddenly changed dramatically.

It didn't take long for the crazy prices to skyrocket.

But that’s okay, as futures rise, prices in the spot market rise simultaneously.

When the delivery period arrives, Zhou Xiaobing can still make money after the registered warehouse receipts in his hand are delivered in accordance with the rules of the exchange.

However, Zhou Xiaobing's plan failed.

Around New Year's Day, prices in the futures market suddenly soared continuously.

In just a few trading days, the price of 9602, the main futures product, soared from 3,000 yuan per ton to 4,577 yuan per ton.

An increase of up to fifty percent.

Amid such a violent rise, Zhou Xiaobing's futures position was filled.

Not only did he lose all of his 35 million deposit, he was also in debt of nearly 70 million.

In futures contracts, Zhou Xiaobing suffered a huge loss of more than 100 million.

But this is just the beginning of the nightmare.

After the three-board daily limit, Zhou Xiaobing's futures positions were all liquidated.

However, on the second day after the position was closed, the Hongxiaodou 9602 contract fell to the limit twice in a row.

A sharp rise must be followed by a sharp fall.

Everyone knows this.

But this has nothing to do with Zhou Xiaobing.

In addition to losing all his principal of 35 million, he still owed the futures company 70 million.

Because his position has been closed.

What made Zhou Xiaobing even more depressed was that the price of red adzuki beans also plummeted in the spot market.

In just a few days, the price of red beans dropped from 4,300 yuan to 2,900 yuan per ton.

Zhou Xiaobing went bankrupt.

In just over a month, he lost all his wealth.

Not only that, he also owed a debt of 70 million to the futures company.

The only thing left by Zhou Xiaobing is the 30,000 tons of spot goods in various warehouses.

But for Zhou Xiaobing, it was meaningless.

Among the 30,000 tons of cargo, the current market price is more than 80 million.

One-third of the more than 80 million yuan in stock is on credit.

Even if all the spot stocks are cleared, it will not be enough to repay the futures company's debt.

"Lingling..."

The cell phone in Zhou Xiaobing's pocket was ringing.

He took out his cell phone in a daze and pressed the call button.

"Hello Mr. Zhou, I am Mo Chongming, the manager of South China Futures Company. Due to the position of your account number 1233214 on the Hongzhongdou 9602 contract, the position has been exceeded.

"boom…."

Zhou Xiaobing threw his phone on the ground indifferently.

The quality of Nokia's mobile phone was very good. Even if Zhou Xiaobing threw it to the ground, he could still hear the sound coming from the phone.

"Please replenish sufficient deposit within seventy-two hours. According to the terms of the contract you signed... Hey, Mr. Zhou, are you listening? Hello. If you do not replenish the deposit, we will have the right to sue you. Hello, Mr. Zhou..."

Sue me.

hehe…

Zhou Xiaobing stood on the 16th floor of the Exchange Building and smiled, then took a few steps to the edge of the balcony.

"Hey...Mr. Zhou, Mr. Zhou, are you listening?"

The cold wind blowing upstairs brought a biting chill.

But no matter how biting the chill was, it couldn't overcome the coldness in Zhou Xiaobing's heart.

Zhou Xiaobing only had one idea.

He's finished.

Everything he had worked hard for his entire life was over.

The feeling of falling from heaven to the clouds filled Zhou Xiaobing with despair.

Zhou Xiaobing closed his eyes.

Seeing no hope, he jumped into the vast sky.

"Mr. Zhou...Mr. Zhou..."

On the roof, the Nokia phone was still ringing.

But there will no longer be Mr. Zhou in this world.