Rebirth of Cyber ​​Hegemony

Vol 3 Chapter 1087: : Brothers, the opportunity for revenge is here

"Huh, the Xiangyuan hedge fund broke out?"

"Yes, the news just came out."

"So what, what do you mean by exploding?"

"It's just that they have lost money."

"666...this girl also has today, then I will buy Huanyu Group."

There is no liquidation in stock trading.

Because no matter how much it goes up or how much it loses, this is real money for investors.

And even if it drops too much, he will not become 0, so he will not liquidate his position.

However, for some futures and options, it is different.

Because this is not a physical delivery, nor a stock transaction, he will also use a certain amount of leverage.

Therefore, he must pay a margin for most option transactions.

When your loss exceeds the margin, it is a liquidation, which means that the brokerage platform will force your position to be liquidated.

Xiangyuan hedge fund short Huanyu Group, the business adopted is to buy short options.

For example, the current stock price of Huanyu Group is US$100, and I purchased a short option. When Huanyu Group drops to US$70, which means a 30% drop, then I can get a profit of US$30 per share. If I bought 10,000 copies, that would be a profit of $300,000.

But at this time, if Huanyu Group has not fallen, but has risen, for example, if it has risen by 5%, then you will lose 5%.

Of course, a loss of 5% doesn't look like a lot, but what if you bought 1 million short options?

At $100 per share, 1 million copies are $100 million, and a loss of 5% is $5 million.

Well, $5 million is not much for Xiangyuan hedge fund.

So, at this time, he still used 100 times leverage?

Then, the loss is not 5 million, but 100 times the 5 million, that is, 500 million US dollars.

If the margin of the Xiangyuan hedge fund is less than US$500 million, then he will directly liquidate his position.

After the liquidation, even if the stock fell to the point he originally expected, he did not have any return of 1 cent.

This is a little complicated.

Many ordinary investors may not understand.

But it doesn't matter if you don't understand it, as long as you know that liquidation will result in a loss, and it is a huge loss.

"My grass, the retail investors in the wsb forum are really awesome."

"Of course, one retail investor can't deal with Xiangyuan, 10 retail investors, 100 retail investors, 10,000 retail investors, 100,000 retail investors? What about Xiangyuan hedge funds, too."

"Tell you, there is also a leading brother in the wsb forum. He was formerly the vice president of AOL. This time he is in charge of the war against the organization."

"Brothers, experts in the industry predict that the explosion of the Xiangyuan hedge fund may mean that Huanyu Group's share price will rise to $150."

"150 dollars, my grass, is it true?"

"of course it's true."

"Can't wait, I want to buy the shares of Huanyu Group.

The current stock price of Huanyu Group is only 105 US dollars, which is still a long way from 150 US dollars.

At this time, the market reported that the Xiangyuan hedge fund was finished, but a crowd of retail investors who had been watching the show off the court rushed into the Huanyu Group madly.

"I buy, I buy, I buy, buy, buy."

"Kill that Xiangyuan hedge fund."

"Hurry up, brothers, the opportunity for revenge has arrived."

Although liquidation is very common, it is not common for institutions.

Often a certain institution or a certain hedge fund blows out, which means that they have suffered extremely heavy losses.

At this time, Xiangyuan Hedge Funds broke their positions and gave a lot of retail investors a boost.

What does it mean to be a short seller?

This means that Huanyu Group is about to rise sharply.

"what happened?"

"My God, how come the buying has increased so much all at once."

"Oh, God, Huanyu Group has risen to 10%."

The heads of the agencies were stunned.

They could see from the disk before that a crowd of retail investors could no longer stand it.

Unexpectedly, a few minutes later, the disk changed instantly.

I didn't know where a large sum of funds came suddenly.

Although each of these funds is not large, some are tens of thousands of dollars, and some are only a few thousand dollars.

But no amount of funds can hold up many people.

The crowd of retail investors flooded in like a tide, and the Huanyu Group launched a rocket directly.

From the original 105 US dollars, it jumped to 110 US dollars.

"I'm going, this is?"

"Impossible, this is impossible."

"Everyone, have you released the water?"

Andrew couldn't believe it.

"Release the water, release your sister’s water, do we release the water?"

"Why is the dish like this without water?"

"You ask me, and I want to ask you too."

"Everyone, we have an agreement."

"Damn, don't talk about the agreement at all times, we really didn't do anything."

"Then how do you explain?"

Pointing to the 10% increase, Andrew was completely angry.

They bought the short-selling option of Huanyu Group, and they still smashed the leverage of 100 times.

The more Huanyu Group rises, the more they lose.

Don't underestimate the increase of only 10%.

But now, they have incurred a loss of 300 million U.S. dollars.

Fortunately, their Xiangyuan is strong, and their margin is relatively sufficient.

If not, just like this, their Xiangyuan would have to blow up their positions directly.

However, Xiangyuan did not liquidate its position, but news about Xiangyuan’s liquidation in the media market soon spread.

"Andrew, are you out of stock?"

Looking at the news posted by the media, several heads of agencies asked.

"Broken up?"

Andrew shook his head: "How is it possible, how can we sell out."

"Andrew, don't hide it, the media broke out."

"Breaking ass. You don't know the strength of your Xiangyuan, let alone that we have not been liquidated, even if it is really going to be liquidated, we can increase the margin... What, do you say that the media has reported the news of our liquidation? "

"right."

"Where?"

"You just search the Internet, it's everywhere."

"Oh shit……"

Andrew opens the Yahoo website.

Sure enough, the headline on the front page of the homepage is exactly the rumor that the Xiangyuan hedge fund has exploded.

"The grass, who did it?"

Andrew cursed.

He knew that their fragrant relationship had been dealt with.

"Immediately release the news to the media. The news of the previous liquidation was fake."

The first time, Andrew took public relations measures.

It's just that Andrew acted swiftly, but countless spectators simply ignored the statement of the Xiangyuan hedge fund.

There are even a group of netizens who madly started Xiangyuan Hedge Fund.

"If the position is liquidated, the position will be liquidated. Is it necessary to deceive everyone?"

"Hey, Xiangyuan, you also have today, and you have lost your life."

"Didn't you release the short-selling report of Huanyu Group? Come on, continue short-selling."

"I want to know, how much did you lose?"

It can be said.

Hedge funds like this are notorious.

Many people had nothing to do with them before, but now they see the Xiangyuan hedge fund blow up, which is really pleasing.

Even if they explain and declare, the crowd will not be a fan of him.

Even after the announcement of the Xiangyuan hedge fund, Huanyu Group's stock rose again by 5%.

Yes.

The original increase was 10%, but it has now risen to 15%.

This increase is not a big deal for some small-cap stocks.

But for Huanyu Group, which has a market value of 180 billion US dollars, the 15% increase is staggering.

But this did not end.

After the stock price of Huanyu Group rose by 15%, this aroused the enthusiasm of a group of retail investors.

"Brothers, go ahead, the fragrant relationship is over."

"Look, as soon as Xiangyuan issued a statement, Huanyu Group's share price rose sharply. What does this prove? It even more proves that they are real liquidation."

"Yes, I didn't expect them to have today. Lao Tzu will invest all his wealth in Huanyu Group."

then.

A magical phenomenon appeared.

With the addition of retail investors ~www.wuxiaspot.com~, Huanyu Group's stock price is no longer under control.

Increased by 17%.

Increased by 20%.

Increased by 25%.

Increased by 30%.

Increased 32%.

In the last 10 minutes of the late game, Huanyu Group launched another rocket, which exploded by 40%.

And this time.

Let's take a look at the account of Xiangyuan hedge fund, they have already lost 1.2 billion US dollars.

Look at their margin again.

Andrew took a breath of fright.

As long as Huanyu Group rises by 1%, their Xiangyuan hedge fund will really blow up.

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