Rebirth of the Strongest Tycoon

Soon, New York light crude oil futures quickly broke through the price of $ 29 a barrel and continued to fall.

In theory, futures prices are higher than spot prices.

Because futures price = spot price + related fees.

These related costs include storage fees, management fees, interest on capital occupation and so on.

Therefore, futures prices should be higher than spot prices, and crude oil futures prices should not fall below $29 a barrel.

But nothing is absolute, and a theory is just a theory after all.

What's more, oil futures are very different from other commodities, and it is normal for futures prices and OPEC prices to sometimes separate.

After all, although OPEC occupies an absolute leading position in the international oil market, and even rides on the heads of European and American countries, this does not mean that OPEC's price has 100% guiding significance.

In later generations, the separation of oil futures prices and oil spot prices was a regular occurrence.

At this time, OPEC lowered oil prices and announced an increase in production, which violated the interests of oil-producing countries such as Latin America.

But don't think about it. Now Latin America and other oil-producing countries are equivalent to bare feet and heavily indebted. They can only rely on exporting oil and minerals to increase their income.

In order to survive, it's better to be cheap than not to sell, isn't it?

Therefore, most institutions have judged that OPEC's reduction in oil prices will only force non-OPEC oil-producing countries in Latin America except Venezuela to lower their prices!

Although Latin America and other countries have not yet reacted, this general trend is certain!

In order to eliminate debt, countries such as Europe and the United States will also give priority to buying oil from debtor countries such as Latin America.

Therefore, the futures contract price of $29 a barrel is not the bottom line at all!

The major bears seized the opportunity and suppressed the price in a general way, trying to blow out the long positions!

According to the 5% margin rate, many long positions are opened at a price of more than 30 US dollars a barrel. As long as the price is hit below 28.5 US dollars a barrel, most of the long positions will have to be liquidated, and even the margin will be replenished. Time is running out!

...

"Hurry up, quickly close the position!"

The New York branch of Nomura Securities Company was extremely tense at this time, especially the department responsible for direct operation of oil futures.

Even the president of Nomura Securities' New York branch, Ishikawa Shuto, personally took command.

After all, in the beginning, Nomura Securities Co. only invested 100 million US dollars in margin to go long oil futures, but later the short power increased greatly, and Nomura Securities Co., Ltd. invested another 50 million US dollars to cover the long position at the position of 29.96 US dollars.

Therefore, Nomura Securities has invested 150 million US dollars and enlarged it to 3 billion US dollars to operate.

After OPEC announced a cut in oil prices, losses were already doomed, and Shuren Ishikawa's purpose was to hope that the losses would be smaller.

But who would have guessed that the bearish offensive was so ferocious, the price fell below $29 in just over two minutes after the opening.

Moreover, there are still a steady stream of low-priced sell orders in the market, and the prices are lower than the next, but no institutions are buying!

Obviously, the price has not fallen to the psychological price of the institutions that want to buy the bottom, and it is not time to enter the market.

But Nomura can't wait!

Seeing that the price quickly dropped to $28.75 a barrel, Ishikawa Shuto's muscles were tense, and his whole body was tense!

Because the first batch of $2 billion worth of contracts bought before was opened at $30.18 a barrel.

If you have been unable to lighten your positions and wait until the price falls to $28.68 a barrel, then the $100 million margin will be equal to the floating loss!

Once it falls to $28.67 a barrel, the floating loss will be greater than the margin amount, and the position will be liquidated!

And for the second time, the one-billion-dollar contract was opened at the position of $29.96 a barrel, and the closing line was $28.47 a barrel. Once it fell by another $0.01 a barrel, the position would also be liquidated!

but now,

A total of three billion US dollars of oil futures contracts have not been sold!

All are still in hand!

"President, the funds have been mobilized, do you want to make up the deposit immediately?"

At this moment, Kaede Kojima, manager of the oil futures operation department, hurriedly came to Shuren Ishikawa and quickly reported the report.

Ishikawa Shuren's eyes were round and bloodshot, and his eyes stared straight at the curve.

$28.73!

$28.71!

The downward trend is still rapid!

Ishikawa Shuren shook his head sharply and made a difficult but wise decision. He said in a hoarse voice: "If you don't make it up, let it burst!"

Kojima Feng clenched his fists tightly, then released them, and responded with a heavy heart, "Yes!"

In fact, at this point, it is useless to make up the security deposit or not.

The liquidation has been unable to be closed. Even if the liquidation is forced to be closed by the exchange, it may still not be closed, so why do you need to make up the margin?

Let the exchange force the liquidation, at least it may be the first to flee and sell it at a higher price.

In this way, after losing the margin, they will have less money to make up.

It's better to keep the funds in your hands first, at least you can have more initiative, this two billion dollar contract can't be saved and you don't need to struggle.

A few seconds later, the price fell to $28.67 a barrel, and the floating loss was more than $100 million in margin, which instantly triggered the exchange's mechanism, and the exchange forcibly liquidated the position!

And this is not the end!

The price of light sweet crude oil futures in New York continued to drop, which made Shuren Ishikawa's nerves more and more tense.

But this time, he felt very powerless.

In the face of this general trend, he can't do anything at all, and the most he can do, maybe just pray.

Pray that the price doesn't break above $28.47 a barrel, or another billion-dollar contract will blow out.

But sometimes, the more you don't want something to happen, the more it will happen.

Some time ago, during the high and volatile period, although there were many changes, whether it was long or short, the profit margin would not be too large, and even because of the large fluctuation, the profit earned in the front had to be spit out later.

So neither the shorts nor the longs make much profit.

It's rare that this time fits the sky, with OPEC assists, and the bears still don't try their best to grab benefits?

Therefore, sixteen minutes after the opening of the New York Mercantile Exchange, the price of New York light crude oil futures fell below $28.46 a barrel, and Nomura Securities Co.

And futures prices continue to fall!

Ishikawa Shuren was desperate, and finally fell below it!

Some people are sad and some people are happy.

Tiger Fund and Bridgewater Fund are naturally happy parties.

When the price of New York light crude oil futures fell to $28.14 a barrel, the two funds successively opened positions to buy futures contracts to hedge their previous short positions.

The two funds collectively hold more than $8 billion in futures contracts, both of which were short positions at $30.15 a barrel.

Now opening a buy position at $28.14 a barrel, a large sell order was quickly bought.

After buying the same amount of futures contracts, the two funds made a combined profit of $533.33 million!

As for Nomura, while the first $2 billion contract sold out at $28.67 a barrel, the second $1 billion contract sold out at $28.46 a barrel.

However, the price has been lowered, and it was not sold until Bridgewater Fund and Tiger Fund bought it.

Therefore, in addition to the loss of the margin, Nomura Securities Co., Ltd. has to increase the compensation, otherwise the futures seat will be cancelled, and there will be other troubles.

Including the repaid losses, Nomura Securities has accumulated losses as high as 195.94 million US dollars!

That's more than one-tenth of the total assets of Nomura's U.S. division!

Ishikawa Shuren immediately covered his cover, for fear that the news would be exposed and bring huge trouble to the company!

PS: I had an entertainment today. I drank in a daze and forced myself to write a chapter and checked it several times. The logic should be correct, everyone should rest early!