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Chapter 421 Huge Numbers

But Lei Hao also knows very well that this time, he cannot be 100% sure. If the funds are small, it depends on the price, and if the funds are large, it depends on the trading order.

If you use a large amount of funds to eat up the buying and selling orders that originally belonged to others, it will cause the original long or short positions to operate in reverse, which may also make them lose their willingness to enter the market, and may also scare other participants.

This time, Lei Hao is also learning. He is learning to use future information to conduct large-fund operations, test the mentality of other market participants, and accumulate experience for the future.

Throughout Monday, Lei Hao only made one ultra-short-term operation. It wasn't that he didn't want to do more, but the daily limit was blocked again.

With one ultra-short-term operation, Thunder successfully made an eight-digit profit, but for a contract with a face value of only one billion, Lei Hao didn't even use leverage.

On March 6, the price of the main cotton futures contract closed at 12,150. In the spot market, bulls and traders naturally set the price at 12,500. Cotton-using companies continued to be dumbfounded. There were more and more funds onlookers, and the market was becoming more active. The higher you go, the risks and opportunities start to increase.

For everyone who invests in Lei Hao, they are happy and excited. Everything is developing as Lei Hao expected. If this capital operation is successful and the funds are withdrawn, the company will barely be considered a leader in the financial circle. A medium-sized organization.

Tens of billions of funds, billions of net assets, and representative battles are exciting just thinking about it.

On March 7, the cotton futures market was suppressed at the opening, but with the support of the spot market, it stubbornly stood on the daily limit of 12,640.

It's just that the loosening of futures prices and the slowdown in rising prices have lifted everyone's spirits.

The time to enter the game is right here. Four consecutive daily limit increases have announced that cotton prices have occupied the public eye and heated up the entire market. The irrational index has allowed many people to see the profit potential contained in it.

On March 8th, 9th, and 10th, the futures market indeed entered a period of shock. Traders in the spot market held on to their inventory without selling it. Bulls raised the futures price index while auctioning reserves at the agreed price. Following the trend, funds went long. There was a confrontation with the short-selling funds.

Even the bulls who had established positions in the early stage, such as Thunder and Xinfeng, were no longer able to control the market at this time. Lei Hao even saw signs of a decrease in Xinfeng's positions.

However, the total trading volume of the market is rising steadily. The 1.5 million transactions have attracted more funds to enter the market. The battlefield is rolling like a snowball. The huge volume, fierce fighting, and the smell of blood have attracted foreign financial media. Everyone started paying attention.

This is a cycle that I don’t know whether to be vicious or virtuous.

In five days, Lei Hao increased his ultra-short-term trading from 18,000 lots to 25,000 lots. In other words, on the 10th, he bought 25,000 lots by himself, corresponding to 25,000 sell orders, with a trading volume of 50,000. Lots, close the position again, another 50,000 lots.

100,000 lots, this kind of operation naturally attracts the attention of corresponding funds.

In this battlefield, you can find the corresponding opponent according to how much money you have, whether it is generals or soldiers.

After his existence was confirmed and he was targeted again, Lei Hao immediately felt that the difficulty of the operation had increased. However, the amount of his funds determined that it was impossible for him to use the ant moving method to operate. Not counting the original positions, he added With the profits made in the past few days, the available funds are close to 1.1 billion.

Can such a huge amount of funds be traded using hundreds of lots? Definitely not.

The decrease in market positions also worries those who invest in Thunder, because this signal represents the reduction of resolute long and short forces, and all new funds entering the market are for speculation and arbitrage.

The most important thing is that now that the price has risen, there are more areas for short operations. Bulls such as Xinfeng are showing signs of exiting the market, but Lei Hao still holds on to his positions and the funds he has mobilized look very similar. a joke.

"Inventory is running low, and textile companies are going to Beijing."

"China Reserve Cotton may increase its efforts to reserve cotton."

"The limit of 30,000 tons per day may be broken and is expected to rise to 50,000 tons per day."

"The fall in prices is a foregone conclusion, and real companies say no to the financial circle!"

Over the weekend, Lei Hao saw a situation where the storm was about to come. This situation fully demonstrated one thing: short sellers were getting stronger.

"Place your hopes on the National Development and Reform Commission and China Cotton Reserve?" Lei Hao was thinking while flipping through the documents.

What price do you want the cotton to reach? How do they want to divide the cake of related industries? Should we give more to upstream companies? Or distribute more to downstream cotton farmers and processing companies?

As for "physical enterprises saying no to the financial circle", it is a complete joke. These things are just conflicts of interest. The current price is on the high side, but it is not unacceptable. Don't you see that the downward trend of cotton planting area has been stopped?

But the current price is still false. Cotton farmers sell seed cotton at the same price. However, cotton companies cannot buy lint from middlemen. They will end up collecting cotton from cotton farmers. It is too late and they will not end up because the market price is too high.

From a political perspective, Lei Hao feels that the higher-ups will not take action, at least not at this time. They are happy to see cotton prices rise, and the current situation is still within the normal range of price fluctuations.

But Lei Hao came to this conclusion because he has information about the future. He knows things that others don't know. With the urine of our great China, when the market is too hot, it is normal to intervene and do some "macro-control" things.

Not to mention that cotton involves the livelihood of 200 million people, which is a huge matter. The power represented by cotton-using companies is not a vegetarian. They have the ability to promote policies.

The bulls retreated from profits, the bears brought real companies to work together, policy expectations emerged, and the downward pressure on prices increased. A series of factors allowed Lei Hao to see that the cotton futures price fell back next week.

However, the current decline is... giving way to room for growth next week and even beyond.

Coupled with the daily trading volume that broke the historical record, that means... there is still room to go long!

"Haha." Even as big-hearted as Lei Hao, he couldn't help but feel a little numb when he thought about this.

We hold 180,000 positions. If we add more positions, we will definitely be the main force among the main force.

"200,000 hands? 300,000 hands? Or 400,000 hands?" Lei Hao couldn't help but feel a little dry when he thought of these numbers.

Selling will definitely appear, the time will come to open a position, and there will be a time to close the position in the future, but... what if? If the policy really comes out, I will probably lose all the previous profits.

That's several hundred million!

"Tens of millions of funds are of little hesitation value to me, but now it's several billions." Lei Hao's whole person was a little hot, but the bloodthirsty side of his character quickly made him make up his mind: "Crisis That’s opportunity!”

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