Rebirth of the Capital Legend

"Okay!" Frederick heard Su Yi's plan to not give up until he destroyed the main short-selling institutions in the market. He only hesitated for a moment, then quickly nodded and said with a smile, "Historic opportunities and chances naturally require extraordinary courage. Our institution currently has billions of dollars in reserve funds that can be used.

I will use these several billion dollars to accompany Mr. Su in this gamble.

The bet is that the result of the Brexit referendum will exceed the expectations of most people and will lead to a final Brexit referendum. At the same time, the bet is that under such extreme emotions, the Bank of England will not dare to continue to release its US dollar foreign exchange reserves on a large scale to stabilize the pound exchange rate.

As long as these two points are within our expectations and within our plans.

Then, the strategy Mr. Su just mentioned will most likely succeed."

Su Yi heard Frederick's decisive words, nodded slightly, and responded: "Thank you for your trust, Mr. Frederick. Since Mr. Frederick agrees with my plan and is willing to implement it, then we should continue to work together."

"That's natural." Frederick laughed.

"Count me in too." Kong Fansheng from Huayin International's Investment Department gritted his teeth and responded, "With such a great opportunity, I really feel a little unwilling not to defeat the main bulls in the market, create an extreme market trend, and grab more lucrative profits."

"Okay." Su Yi nodded, "But... does Manager Kong have the authority to do so?"

Kong Fansheng nodded and said, "Before this round of pound exchange rate investment project ends, I will naturally have absolute control over the investment transaction strategy."

"Old Kong, you..." Meng Shengfei paused and said, "Then count me in as well."

Seeing that Su Yi was full of confidence and that the main hedge fund "Evolution No. 1" headed by Frederick was willing to implement this trading strategy, he quickly realized that the probability of success of this strategy was very high. He also instantly realized that his previous strategy of asking traders to sell off large quantities of shares to cover short positions was completely stupid and wrong.

After realizing this...

Especially after he witnessed Su Yi's foresight and judgment in this round of pound exchange rate speculation.

Naturally, he quickly decided to correct his previous strategy and continue to follow the trading strategy formulated by Su Yi.

What's more, the 'Huayin International Investment Department 15' headed by him has currently earned more than billion US dollars in profits in the pound exchange rate market.

With this huge floating profit.

He believes that even if he continues to increase his short positions and continue to force the long institutions in the market.

If there are unexpected changes in market news or market trends take unexpected directions, it is completely possible to exit without loss.

And use floating profits to gain even greater profits.

This investment strategy authority is completely within his authority and he does not need to apply to the group or his immediate supervisor.

"Okay." When Su Yi saw that Meng Shengfei also agreed to join, the smile on his face became even more intense.

If he wanted to take advantage of market sentiment and continue to force the long positions unilaterally, forcing the many long-term major institutions in the market to make concentrated stop-loss and close their positions due to the collapse of confidence, thereby causing a more serious situation of "long killing long" in the market, it would be impossible for him to do so with the amount of funds in his hands.

That is to say...

In order to fully implement the strategy he just mentioned, the amount of funds that need to be continued invested is still huge.

In this case, the more funds involved in this strategy trading, the easier it will be for his strategy to succeed, allowing him to make more profits from the British pound exchange rate market.

Therefore, as long as Meng Shengfei and Kong Fansheng are willing to join, he will naturally have no objection.

After the four of them had another brief discussion and formulated a new trading strategy...

Soon after, all traders in the internal trading rooms of the three major institutions, namely Huayin International, Huayi Capital and Aberdeen Asset Management Evolution No. 1 Hedge Fund Trading Department, began to quickly execute the trading instructions of fund managers from all parties, using the floating profits of their own accounts to increase their short positions on the pound exchange rate board on a large scale.

And as these major institutions further increase their position trading.

There were also tens of millions or even hundreds of millions of dollars worth of short open main contract orders, which brought the British pound exchange rate down to the ground.

The pound sterling exchange rate suddenly began to plummet. In just one or two minutes, it broke through the 1.4200 and 1.4150 levels, and fell back to the intraday low and the historical low set during the financial crisis in 08.

"Damn it...it fell back so quickly."

There was a group of retail investors in the market who had just speculated on the long side of the British pound exchange rate. Seeing the British pound exchange rate quickly fall back to the historical low in 08, they couldn't help but swear for a moment.

"Alas, this rebound is too weak, isn't it? It feels like the market has completely turned to the bears."

At the same time, on the foreign exchange investment network platform, other retail investors who were long on the market also expressed frustration.

"It is indeed a complete short market. Whether it is speculative long or investment long... it feels like a dead end. It is impossible to make a profit."

"I just had a profit of $2, but now it has turned into a loss in just one or two minutes."

"Could it be that the result of today's referendum will really end with Brexit?"

"According to the final referendum voting results announced by various districts, the number of people supporting Brexit has exceeded the number of people supporting Remain by nearly 22. It feels like this situation is difficult to reverse."

"It all depends on the voting results in core urban areas such as London, Manchester, Leeds, etc."

"Why haven't the voting results for these core areas been announced yet?"

"Most of the UK's population is concentrated in these core areas. If the voting results of these core areas are not known, the final referendum result will be uncertain."

"It's a pity that the market has collapsed."

"As long as the pound sterling exchange rate has not fallen below the 1.4000 mark, it will not be considered a complete collapse."

“It’s not a collapse, but the confidence of the bulls is really running out.”

"What about the Bank of England? What is the Bank of England doing? Didn't the Bank of England say before that it would firmly maintain the stability of the pound exchange rate market?"

"With the previous operation of 'UBS abandoning the Swiss franc exchange rate', I think the Bank of England is not trustworthy."

"I also think that the Bank of England's so-called rescue strategy cannot be trusted. After all, if the rescue strategy is really effective, it should have been implemented a few months ago, and it would never have caused the pound to fall to the current level."

"But it's not appropriate to go short here, right? After all, it's at a historical low."

"Could it be that the Brexit crisis this time could be worse than the financial crisis in 08?"

"That's hard to say. Anyway, I am firmly bearish."

"Eh... this is weird. Ten minutes ago, the number of short positions gradually decreased, but now it is rapidly increasing again. It seems that a new huge short-selling momentum is forming."

“Fuck, it’s not going to fall below 1.4000, is it?”

“I feel like nothing is impossible.”

"Are you going to force me to stop loss again? I just stopped loss once at around 8 o'clock in the morning."

"Whether it can fall below 1.4000 will probably depend on the voting results of many subsequent voting areas. As long as the number of people supporting Brexit continues to expand to 30 or more than 50, it is entirely possible that the pound exchange rate will continue to fall below 1.4000."

“Oh, what a pity I didn’t short above the 1.5000 mark!”

"Before the official counting of the referendum results began, who would have thought that the number of people supporting Brexit would always be ahead?"

On the major online platforms for global foreign exchange investment, countless retail investors, hot money groups, and a large number of speculative traders are discussing fiercely, with some expressing bearish or bullish views.

Looking at the trend of the pound sterling exchange rate, it once again hit the low point of the 08 financial crisis.

The major long institutions in the market that had not yet had time to reduce their positions and close their stops on a large scale, as well as countless long speculators, were increasingly feeling panic.

Even, in London, inside the Bank of England.

A group of members of the Central Bank Committee, including Bank of China Governor Brian, stared at the pound exchange rate which was teetering around 1.4100. Although their faces were calm, they were still indescribably nervous inside.

"President, the main short-selling institutions in the market are still forcing their positions." Committee member Clement frowned and said, "Once the pound exchange rate falls below the 1.4000 mark, the last psychological defense line of the bulls, the trend is expected to collapse completely. This will have a huge impact on us and cause our bank to suffer huge losses."

In order to avoid causing more extreme emotional fluctuations in the market.

The Bank of England used the funds from the Bank of England to inject into the market and established a large number of long positions, but did not close the positions and cover them at this time.

Once the pound sterling continues to plummet.

The huge long positions they established in the market will also suffer huge capital losses.

But in order to implement their firm determination and commitment to maintain the market exchange rate, and to maintain the central bank's confidence in the long market and the central bank's credibility.

Under the current circumstances, they are unable to concentrate stop-loss positions on a large scale.

Because once they concentrate their stop-loss positions on a large scale.

Then, the major long and short institutions that are well-informed in the market can instantly detect their abnormal market movements through their dedicated trading seats.

Once the news comes out that the Bank of England is massively and concentratedly cutting its long positions.

This means that the market's most determined bulls have wavered.

This would cause a market avalanche in an instant, and would also cause the pound sterling exchange rate to experience a more tragic flash crash in an instant, and lead to a complete collapse of market bullish confidence.

This result...

This is clearly not what the Bank of England's committee members want to see.

However, the expected direction of the referendum results was completely contrary to their previous expectations. At the same time, the main short-selling institutions in the market were also frantically forcing the liquidation.

As a result, even if they do not concentrate on cutting positions and stopping losses at this position.

It is probably difficult to hold the 1.4000 level, and it is also difficult to reverse the continued collapse of bullish confidence in the market.

"What about the final voting results in each district?" Brian adjusted his glasses and asked his secretary without paying attention to Clement's words, "Is there any turning point?"

The secretary shook his head and said, "At this time, the announcement of the referendum results and the way the votes are counted are done autonomously by each district. The government cannot intervene directly or change the results, so... what we can do is very limited. At present, everyone... can only leave it to fate."

"Haha, leaving it to fate?" Brian sneered and said, "Do these guys know the difficulties we are facing? Do they know that the wolves and tigers on Wall Street are forcing us to short sell on a large scale? If we really leave it to fate, we will lose more than 100 billion US dollars in two hours."

"Connect me to Lord Andrew's call." After a pause, Brian urged with a gloomy face.

The secretary nodded, hurriedly asked the operator for the number of Treasury Secretary Andrew, and handed the phone to Brian.

Brian took the microphone, calmed down, and continued, "Lord Andrew, our current situation is very dangerous. We need to know the final result of this referendum in advance and make a strategic response immediately. Otherwise... facing these guys on Wall Street, we will suffer heavy losses. At the same time, the complete collapse of the pound exchange rate will directly affect our central bank and even the credibility of the pound, which will have a huge impact on our country's subsequent economic recovery."

"Alas, for the sake of absolute fairness and justice, the referendum results will be independently counted in each district and will be broadcast live to the world when the counting results are announced." Andrew sighed and said, "Don't talk about me. Even the Prime Minister will have to wait until the referendum results of each district are completely announced before he can know the final result."

"Then we..." Brian was speechless for a moment. After a long while, he took a deep breath and said, "We can only give up the exchange rate."

"Are you sure we can't hold it?" Andrew asked.

Brian responded: "Without being able to play the last trump card, we can no longer reverse the market trend and situation."

"Then give up," Andrew said, "I will bear the consequences no matter what the final result is."

"Okay." Brian's tense mood finally relaxed a little after hearing Andrew's words, and he responded, "Then the subsequent fate... will be left to the market itself. I just hope that our people are rational and wise, and can help us turn the defeat around."

After that, Brian hung up the phone.

Then, he turned around and looked around at all the members of the committee, and said: "Since the 1.4000 point level cannot be maintained, then let's abandon the stop loss. The subsequent fate will be decided by our people. We have tried our best for this, but we are powerless to change the situation. This is the only way."

The other committee members looked at each other and remained silent.

Then, after about ten seconds, everyone nodded.

After obtaining the unanimous authorization of the committee, the Bank of England, as the last major long position in the market, and its affiliated institutions, began to concentrate on stopping losses on a large scale on the long positions that were already suffering extremely serious losses.

This was accompanied by the Bank of England's complete abandonment of the pound sterling exchange rate.

At the moment when the Bank of England was closing its positions on a large scale with its stop losses.

Many large capital institutions around the world that monitored the unusual movements of this institution immediately noticed the anomaly.

Immediately afterwards, orders from various global trading markets and from countless major long and short institutions began to be sold in a concentrated manner. A huge amount of major short orders gathered, and countless long and short stop-loss orders hit the market.

In just a moment...

In the eyes of hundreds of millions of foreign exchange traders around the world.

The pound sterling exchange rate collapsed and plunged again at lightning speed, directly crossing the 1.4100 points, 1.4050 points, and 1.4000 points, breaking through the last line of defense of the bulls at 1.4000 points, and hitting the historical low of the pound sterling exchange rate since the financial crisis in 08.