Rebirth of the Strongest Tycoon

The latest website: Everyone's eyes are on themselves, making Curtis Bard a mountain of pressure.

Although the Rothschild family asked him to short LME copper futures and LME aluminum futures, this cannot be said unless he wants to go to jail.

Curtis Bard was very anxious, and his forehead seemed to become wet.

Barrett Baring frowned and said solemnly: "Manager Curtis Bard, I have read your investment application report, but it is not enough to explain that you invested more than 700 million US dollars to go short in a short period of time. , your behavior is too radical to cause this dilemma, and I need an explanation."

The current floating loss is only US$25.55 million, which is not much for Barings Bank.

But if you think about it, you can understand Barrett Baring's concerns.

Barings Bank went short before, but it gradually stepped into a disadvantage, so there is still room for manoeuvre.

But the news that broke out one after another this afternoon means that the bulls are about to take off, instantly reducing the leeway of the bears headed by Barings Bank by 80 to 90 percent.

Now it's just a loss of $25.55 million.

But what if LME copper futures and LME aluminium futures doubled in price?

So how much money Barings Bank invested, how much money will be lost!

Now that $749 million has been invested, this number is huge!

A total loss would be enough to drive Barings Bank into the abyss!

Although the London Metal Exchange has a margin system, under normal circumstances, if the margin is lost, the exchange will forcibly close the position, and the loss does not seem to be too large.

But nothing is absolute, there are always extreme situations, such as the inability to close a position.

Under the premise that the bulls are unanimously optimistic about the market, holding the futures contract and not letting go, Barings Bank cannot buy enough futures contracts to close the position.

In this way, you can only watch the futures price rise all the way until the contract expires.

In theory, futures prices can rise to infinity,

Therefore, the loss of shorting is also unlimited.

Just like when the Hunter family was long in silver futures, the price of silver futures was about 2 US dollars per ounce at first, and in 1980, the highest price reached 50 US dollars per ounce, an increase of twenty-five times.

Assuming that the shorts that were shorted from the beginning have not been able to clear their positions and are delivered by longs at the highest level, silver futures sold for $100 million will cost $2.5 billion to buy back, resulting in a loss of $2.4 billion.

Of course, in a few months, the loss will be less than twenty times, but if the bulls are too strong, it is not impossible to increase by one or two times.

With such a huge contract volume of Barings Bank, it is too difficult to close all the positions smoothly when the bulls are on the rise. It is a good idea to lose one or two hundred million US dollars to escape.

Precisely because of the premonition that this would be the case, Barit Barin couldn't sit still at home, and hurriedly called all the high-level leaders for a meeting.

Curtis Budd had dense sweat on his forehead, and quickly explained to himself: "Chairman, I'm sorry I miscalculated the strength of the bulls. I thought that we could use our strong capital to quickly end the battle, but I didn't expect the bulls to capitalize. Tough, it was too late by the time I reacted, and I am planning to attract more capital to join the short camp."

"But before it was officially implemented, what happened at noon today, and the reason why the Howard family's Locke Fund did so much is still unknown."

"But as far as I know, the Sumitomo Trading Company has suffered serious losses in the LME nickel futures, LME zinc futures and LME lead futures markets these days, and they have withdrawn all the funds. They must want to recover losses in other markets, so they will increase Vigorously long LME copper futures and LME aluminum futures.”

"The actions of G.S. Warburg have nothing to do with our investment, but they caused us unexpected trouble."

"Chairman, although the current situation is due to various reasons, I also have a situation of aggressive investment. I am sorry for causing trouble to the company."

After finishing speaking, Curtis Bard lowered his head with shame on his face, as if he had no face to see Baritt Baring.

Curtis Bard urgently learned this trick from George Monroe, which made Barrett Barrin feel nowhere to scatter his anger, and almost suffocated his internal injuries.

But Curtis Bader would have thought too easily if he wanted to get rid of responsibility so easily.

Seeing that the chairman was very annoyed, President Peter Niles glared at Curtis Bard and scolded: "Curtis Bard, your responsibility is the greatest, something has happened, what you have to do is to do your best. Minimize future losses!"

"What are you going to do?"

Although it was a scolding, Peter Niles also gave Curtis Bard a chance, and it was up to the latter to seize it and let Chairman Barrett Baring calm down.

Curtis Budd immediately seized the opportunity and said sincerely: "Chairman, President, I think if we want to reduce losses, we can take two steps. The first step is to create a negative atmosphere of public opinion and win over Companies such as G.S. Warburg that are likely to be short join our short side, and then take the opportunity to liquidate and exit in the second step.”

Curtis Budd put it bluntly, just trying to deceive a few institutions and financial institutions into the water, and then taking the opportunity to throw the pot and escape.

This method of stopping losses is insidious, typically at the expense of others.

But the capital market is inherently ruthless, and only interests come first. If it can really reduce its own losses, Barit Bahrain will definitely do it.

Barit Balin thought for a moment, and felt that the operation was too difficult. After all, no one is stupid, especially shrewd Jews. It is difficult to trick them into taking over!

However, because his attention was diverted, Barit Barin's anger subsided a little, and he looked at the others and asked, "What's your opinion?"

"Chairman, I think it's too difficult to find an institution to take orders, so I suggest taking other measures to hedge losses, such as buying more spot, if the futures price rises, the spot price will follow, and use the profit of the spot to offset the loss of the futures. ."

an executive suggested.

No one stipulates that a short position is always a short position. Long and short positions can be converted to each other. The key is which side is profitable.

"Chairman, I suggest..."

...

The executives who can become Barings Bank have several brushes, and they have put forward their own opinions, those who have suggestions, and those who don’t have suggestions, also offer their own analysis and inspire others.

That's what Barit Bahrain called everyone to a meeting, to use the wisdom of the crowd to solve problems.

At the end of the discussion, everyone's opinions gradually reached a consensus, which can be summarized into three points.

One is to think that the shorting has failed, and you should immediately stop investing in the shorting, so as not to get deeper and deeper, you should find a way to clear the position.

The second is to not give up the trustee to enter the water, and find someone to take over the order to reduce their own losses.

The third is to open a vest, not to go long on the spot in the name of Barings Bank, and send people to major mining companies to buy spot contracts, which will be used for later transactions with metal buyers to hedge the loss of short selling.

In the meeting, their respective responsibilities were also assigned. Among them, Curtis Bard had the opportunity to make up for his faults, that is, to find a way to lighten up and exit from an angle as hidden as possible.

After all, Curtis Bard is the senior manager of the metal trading department of the futures department. He knows the LME copper futures and LME aluminum futures best. At this critical moment, it is the safest way for him to continue to be in charge.

After the meeting, everyone performed their duties and acted immediately.

After leaving the conference room, Barit Baring went straight to the operating room to check the prices of LME copper futures and LME aluminum futures.

Just after seeing the prices of these two, Barit Barin's face instantly turned black.

The meeting was only open for an hour, but the price of LME copper futures rose to $1,387/ton, and the price of LME aluminum futures rose to $2,824/ton.

The two combined, the floating loss of Barings Bank rose again by 10.53 million US dollars, and the floating loss reached as much as 36 million US dollars!

It can be seen that two events in succession at noon have an impact on the market.

Forcibly suppressing the anger in his heart, Barit Barin glared at Curtis Bard, and when the latter repeatedly assured that he would go all out to make up for it, Barit Barin left with a cold face.

The next day was Friday, and the prices of LME copper futures and LME aluminium futures continued to rise, putting pressure on the top executives of Barings Bank.

Fortunately, after the market is closed on Friday afternoon, the market will be closed for two days on the weekend, allowing Barings Bank to have two days of activities.

For example, go to European countries to purchase metal copper and metal aluminum spot contracts.

And the Bright Fund and the Howard family are also buying the spot, it is absolutely impossible for the two parties to meet, or to keep the news from leaking.

The only difference is that the mood of the person receiving the news is completely different.