Rebirth of the Capital Legend

At the same time, the final voting results in the Sunderland polling district were announced, and the number of people supporting Brexit surpassed that in the moment.

On the pound exchange rate board, global capital also responded instantly.

Countless long investors, speculators, and many major institutions holding long positions in the market were scrambling to cut their positions and stop losses, and were concentrating on reducing their long positions.

And almost at the same time.

A number of major short-selling institutions in the market also instantly increased their positions and invested huge amounts of money to short the pound.

It is in this situation that the forces of bulls and bears grow and decline.

At 7:17 a.m. Yanjing time, the pound sterling exchange rate plunged directly from above 1.5000 points to around 1.4680 points, setting a recent low at a faster speed than the previous rebound. It also enabled many major short-selling institutions holding huge short positions in the market to turn losses into profits in an instant.

"My God, how come the final voting result in Sunderland is so different from the preliminary vote count prediction?"

As the pound sterling exchange rate plummeted, and there was no time to reduce positions and stop losses, inside the main fund trading room of Tianhe Capital, Gu Chijiang's face instantly became extremely ugly and he could not help but exclaimed.

Just one minute...

The huge long positions he held changed from a paper loss of tens of millions of US dollars to a paper loss of more than 2 million US dollars.

This instantly pushed his mental endurance to its limit.

"Mr. Gu, the exchange rate of the British pound has directly jumped below 1.4700 points, setting a new low in recent times." Xie Hongxing said hurriedly, "Our position losses have exceeded the initial plan expectations, and we have reached the stop loss line. Regardless of the voting results of the subsequent voting districts, we... focus on stopping losses!"

"Stop loss at this position..." Gu Chijiang's heart was tense and his brows were tightly furrowed, still feeling unwilling.

Xie Hongxing said: "If we don't take advantage of the current market to concentrate on stopping losses, once the sentiment collapses again, once the number of people supporting Brexit further expands, we may not even be able to do concentrated stop losses, and can only wait for the fund positions to be completely blown up."

When Gu Chijiang heard what Xie Hongxing said, he became even more conflicted.

He knew that what Xie Hongxing said was right. Once the market fully leaned towards the short position, once the short forces in the market took the absolute initiative.

Once the overall market expectations completely shift towards Brexit expectations.

Then, what awaits the pound sterling exchange rate will be an even more tragic downward trend and an even more ferocious plunge.

At present, their fund's overall holdings have lost more than 2 million US dollars.

If they do not concentrate on reducing positions and stopping losses at this time, once the market trend develops in an extreme direction that is not favorable to them.

Then, if the stock price drops by another 350 points at most, he will face the situation of a complete liquidation of the entire fund product.

If the main fund product of the company he is in charge of goes bankrupt.

This means that the company he had worked so hard to build, Tianhe Capital, was on the verge of bankruptcy.

After all, nearly 35% of the funds in this main fund product were invested by his company’s own funds, which was almost all the capital he had accumulated after working hard for most of his life.

Therefore, the result of the margin call was something he could not accept or bear at all.

"Boss Gu..." Xie Hongxing saw that the pound exchange rate continued to fall as market sentiment reversed. In the gap between words, in one or two minutes, it had fallen another 20 points. He gritted his teeth and hurriedly urged again, "As long as there is green mountains, there will be no fear of running out of firewood. We must stop the loss and keep most of the principal, otherwise... once the position is liquidated, there will be no chance of recovery."

Gu Chijiang was urged by Xie Hongxing.

He paced back and forth in the trading room, feeling extremely anxious.

Having suffered a huge loss of 2 million US dollars, he was really unwilling to decisively stop the loss and admit his loss.

And, right now.

Faced with the fact that the pound sterling exchange rate has fallen to a nearly two-year low, he still holds a certain sense of luck in his heart.

After all, he felt that although the voting results in the Sunderland area had completely deviated from the expectations of various institutions, unexpected situations had occurred.

There are a total of 382 voting districts available.

With tens of millions of votes cast, this lead of 30,000 is actually easy to make up.

At this moment, he was still worried that once he stopped losses at this position, the subsequent newly announced voting results in each district would correct his disadvantages and expectations.

In that case, large-scale concentrated stop-loss and position reduction at this time would be a completely wrong trading decision.

"Let's wait a little longer." Countless thoughts flashed through his mind. Gu Chijiang hesitated for a while, but finally gritted his teeth and said, "This is only the third voting district. There are more than 1 voting districts waiting to be announced. The current lead of more than people in Brexit is nothing in the context of tens of millions of people. As long as the voting results of other core districts can meet the expectations of the institutions, then the final referendum result will not be a surprise."

"Boss Gu... at this point, if the exchange rate continues to fall, we will become increasingly passive." Xie Hongxing was helpless about Gu Chijiang's hesitation at the moment, and tried to persuade him, "We only have about 300 points of room for error, and according to the trend just now, it is very likely to be a matter of one or two minutes.

Moreover, with the pound sterling exchange rate plummeting, it is difficult for the market to have strong support.

That is to say...

Once the market trend goes wrong, bearish sentiment becomes overwhelming.

Even if we see the rapid decline in the pound sterling exchange rate, it is simply unrealistic to make concentrated reductions in positions and stop losses.

Just like just now, the pound exchange rate fell instantly from 1.5000 points.

In the entire range of 1.4700 to 1.5000 points, within this 300-point space, the trading volume is extremely small.

This means that all the main long funds in the market have no way to concentrate on closing their positions and retreating under the massive amount of short selling orders. "

"I understand." Gu Chijiang gritted his teeth and said, "Let's wait and see. After all, this is only the result of 2% of the vote."

"Okay." Seeing that Gu Chijiang insisted, Xie Hongxing was stunned and stopped persuading him.

Different from Gu Chijiang's hesitation and fluke mentality, at this time, in the main fund product trading room of Hongcheng Mitsui Jiayou Investment Company.

Sato, who is also a fund product manager.

When I saw the final result of the vote in Sunderland, which instantly triggered an avalanche in the pound sterling exchange rate, I immediately realized that something was wrong.

After that, without waiting for the traders to remind them.

Sato stood up from his office chair and began yelling at traders to cut losses and reduce their positions.

"Mr. Sato, our fund has already suffered a huge loss. If we reduce our positions and stop losses at this point, we will miss all the market opportunities once the pound continues to rebound. And once the position weight drops, it will be difficult to turn losses into profits." As Sato's trading instructions were conveyed, trading team leader Yamamoto Kyuichi hurriedly reminded him, "The voting results in the Sunderland voting area are indeed somewhat unexpected, but I think the final voting results are still within expectations. There shouldn't be a big problem. We don't need to reduce our positions so aggressively, right?"

Sato rolled his eyes at Yamamoto Kyuichi and said, "Once the pound sterling exchange rate rebounds... haha, what if there is another sharp drop? We will all be buried in it."

"Not really," Yamamoto said. "The current exchange rate of the British pound is already at its lowest level in the past two years. How much lower can it fall?"

"How low it can go, I'm afraid only God knows at this point." Sato responded helplessly, "Unfortunately, with the continued losses, we can no longer afford to gamble. If we don't take advantage of the current market trend to reduce our positions and stop losses, then... if the trend just now continues, we will be completely liquidated."

"Alas..." Yamamoto Hisaichi sighed helplessly when he heard this.

Sato gritted his teeth and said, "Let's focus on reducing positions and stopping losses. This large-scale investment in the pound exchange rate market has caused such a huge loss. The biggest problem is me. When the positions are cleared and the group is held accountable, I will bear all the responsibilities. You don't have to worry."

Because of the Brexit referendum.

He insisted on his own way and invested a huge amount of money up to US$1.5000 billion at the exchange rate near 10 points.

Now, the results are obviously lower than expected, and the losses have exceeded the fund's overall stop-loss line. He has no choice but to reduce his positions to stop losses and control the extent of losses.

"Mr. Sato, this has nothing to do with you," Yamamoto said. "The financial trading market is inherently uncertain. Even if we make a wrong judgment and choose the opposite direction of holding positions, it is not your fault, but the market's fault."

"You don't have to say more." Sato raised his hand to interrupt Yamamoto Kyuichi and said, "Hurry up and reduce your positions and stop losses. If the market quickly moves towards Brexit, I estimate that we won't have much time to react and reduce our positions and stop losses."

"Okay!" Yamamoto Hisaichi responded.

Then, he quickly directed all trading teams in the trading room to concentrate on reducing their positions and stopping losses on their long positions.

As the main hedge funds of Mitsui Yoshitomo Investment Company reduced their positions on a large scale to stop losses, the pound exchange rate was suppressed by a large number of long orders in the absence of any new news. However, in just a few minutes, it continued to fall unhindered and fell below 1.4600 points.

"Oh my god, it has fallen below 1.4600. This downward trend is really rapid."

Seeing that the pound exchange rate continued to hit a new low since the release of the "Brexit Referendum Resolution", countless short-term speculators in the market and some people on the online trading platform exclaimed.

"The oscillation range of 1.4700 to 1.5000 has been broken again."

"Now, can we say that the pound exchange rate has broken downward?"

"Is this referendum really going to result in Brexit? Oh my God... Isn't this too outrageous?"

"It's really outrageous. The development of the matter and the announcement of the referendum results are completely different from what the major market institutions expected!"

"I didn't expect the pound to hit a new low so quickly."

"On the market, it feels like the shorts are going crazy, and the number of short orders continues to surge."

"Looking back at the main fund product 'Hua Yi Cheng Yuan No. 1' managed by Mr. Su, I can only sigh that Mr. Su is really amazing. He made a big bet on the shorting of the British pound exchange rate and he made the right bet again."

"Alas, I should have followed Mr. Su's lead in the first place!"

“Is it too late to short the pound exchange rate now?”

"If the referendum result is really Brexit, then it is definitely not too late to continue shorting the pound exchange rate at this time."

"It's crazy. This diving trend is so smooth. There is no resistance at all."

"After Sunderland, which polling district will release the data first?"

"Can the number of people who support staying in the EU still surpass that of those who support staying in the EU? I feel that the outcome of Brexit is still uncertain at the moment."

"The long positions in the market are already loosening completely, right?"

"Yes, it has completely loosened up. The current open long and short positions in the market have turned from the previous net long position to the net short position."

“Although the current voting results in several districts do not have a big impact on the overall referendum results, I think… the success rate of short selling should still be greater than that of long selling.”

"I don't believe that the shorts are still taking advantage of the victory and continue to short the pound."

Just when countless retail investors on and off the market began to lean towards the short position and started to aggressively chase positions and short sell.

Inside the company "Hua Yi Capital" headed by Su Yi.

There are also the Investment Department 1 and Investment Department of Huayin International, as well as the Trading Department of Aberdeen Asset Management Evolution No. Main Hedge Fund, which are linked to it.

Meng Shengfei, Kong Fansheng, Frederick et al.

I was very excited when I saw the pound sterling exchange rate hit a new low since the Brexit referendum was launched.

Among them, Meng Shengfei laughed loudly at this moment, and said to Su Yi on the instant messaging channel: "Boss Su, you are awesome, the result of this referendum is completely within your expectations, haha... All the deposited chips of the main long institutions in the market are loosening, and the tragic situation of more killing more is continuing to form.

Subsequently, the number of people who support Brexit will be determined.

As the data from each polling district is released, we will be able to maintain a slight lead.

I dare to assert that the pound exchange rate will continue to fall even more dramatically, and the huge short positions held by our institutions will be able to reap even greater profits.”

"Old Meng, don't be too happy." Kong Fansheng reminded calmly, "There are more than 2 voting districts, but only three have been announced so far, and the number of voters is less than % of the total number of people. The uncertainty of the subsequent results is still very large. I think... we still can't be too optimistic."

"Manager Kong is right." Su Yi listened to the conversation between the two and nodded with a smile. "The final result will probably not be confirmed until the afternoon. Before that, uncertainty still exists. Although we have taken the initiative in the market, we still have to be cautious and cannot use the large amount of floating profit funds at this time to increase positions aggressively. Otherwise, the main long positions in the market that have not yet collapsed will take advantage of the favorable data in the subsequent important voting areas to launch a strong counterattack, which will still strangle us and threaten our positions."