Rebirth of the Capital Legend

“Oh my god! The 1.4000 level was broken without any resistance from the bulls.”

When the pound exchange rate once again plummeted to a new low in 20 years, countless speculators and investment traders gathered in the pound exchange rate market exclaimed in amazement.

"It collapsed. The 1.4000 level could not be held, and the bulls in the market completely collapsed."

“A situation where the more the better, the more the kills, has really taken shape.”

“Does this round of referendum on Brexit really end with Brexit?”

"The number of people who support Brexit is only about 25 ahead of those who support staying in the EU. As the voting results of more polling districts are announced, this lead should have a chance to reverse. Why can't the pound sterling even hold the 1.4000 mark?"

"The bulls have completely abandoned their positions. In the entire market, except for the active short-selling orders, all the orders are long stop-loss orders."

"It's down more than 1000 points from the high it hit this morning. It's crazy."

“Is the trend of the pound exchange rate already a ‘black swan’?”

"If the referendum results in Brexit, it will definitely be a black swan event in history, and it will have a far-reaching impact on the direction of the global economy and the future direction of the world pattern."

"Alas, I was thinking of buying a bottom near the 1.4000 mark and making a rebound, but I didn't expect... I was forced to stop loss again."

"At this time, it is extremely dangerous to do a speculative rebound in the opposite direction!"

"The bulls in the market have already entered a full-scale stampede mode, right? The major institutions that shorted in the market in advance have really made a lot of money."

"What about the Bank of England? The pound has fallen so much, won't they support the market?"

"Yes, I remember that the Bank of England said before that it would strongly maintain the stability of the pound sterling exchange rate. At present, there is no sign of intervention by the Bank of England at all!"

"What are you thinking? With one-sided sentiment and the market trend, facing the main bulls who are trampling on each other, and the main bears who are forcing shorts, who dares to forcefully support the market and hold the bottom when these two huge forces are venting at the same time? Isn't that courting death? Now that this market trend has been formed, no one can support it."

"Oh, it's over. We can't hold the 1.3900 level."

"Fuck, all the long positions opened near 1.4300 points can be liquidated instantly."

"There are no more long positions. If I hadn't set a stop loss, I would have been liquidated."

"Fuck, no way! I heard that the Bank of England itself is also cutting its long positions on the pound exchange rate on a large scale."

"Is this true? This news is too explosive."

"The rumor in the market is that after the sharp drop of 1000 points, the Bank of England itself can no longer bear it."

"Doesn't the Bank of England claim that it has nearly $4000 billion in foreign exchange reserves? Can it be so easily unable to withstand the stop loss? Oh my god... The central bank of its own country has become a force that drives down the exchange rate of its own currency. How can the bulls in the market have any room to survive? How can they have any ability to reverse the market?"

"It seems that this news was released by several media outlets under Aberdeen Asset Management. I don't know if it is true."

"Aberdeen Asset Management? I'm afraid the truth of this news has to be discounted. After all, Aberdeen Asset Management is the main institution shorting the pound exchange rate market."

"But no matter whether the news is true or not, the market has already collapsed, so all the long orders in hand cannot be kept."

"But the market is still falling across the board. It's not so easy to stop loss and leave the market at this time."

"It is certainly not easy for the main bulls in the market to close their positions and leave the market, but we retail investors basically have orders of less than 100 lots. Even if the market's acceptance is poor, it is easy to stop loss and stop profit in foreign exchange transactions. The ones who are having a hard time now... should be the global capital institutions that have been bullish on the British pound exchange rate before."

As everyone discussed...

When the pound sterling exchange rate actually fell below 1.4000, the last line of defense for bulls, it triggered the final stop loss line of many major bullish institutions in the market.

When almost all the bulls gathered in the market began to close their positions and stop losses rapidly.

Many major long institutions with long positions of more than 10 lots and their related fund managers became extremely panicked, just as everyone expected.

Among them, in London, UK, inside the 'Pacific Capital' institution.

Hedge fund manager Yabuk had cold sweat on his forehead, and in his heart he had already cursed the Bank of England countless times for violating its previous market commitments and completely abandoning the pound sterling exchange rate at a critical moment.

"Mr. Yabuk, what do we do now?"

While Yabuk was getting anxious and even furious, the trading team leader Flora asked urgently in the trading room.

As their institution continued to increase its long positions above the 1.4000 level, their fund suffered heavy losses after the pound exchange rate fell through all support levels and broke through the 1.4000 level.

At this moment, the hedge fund headed by Yabuk.

The unrealized loss figure has exceeded 30 billion US dollars.

This was an unprecedented huge loss for them, and the extent of the loss was still expanding rapidly as they were unable to stop loss and exit the market instantly.

"What should we do?" Yabuk gritted his teeth and said, "Stop loss, stop loss, the only thing we can do now is stop loss."

If the most determined bull in the market, the Bank of England, has given up, then there is no need for them to hold such a large long position to bet on the referendum result and the reversal of the market trend.

Because when the referee is not optimistic about the game being won, then it will be really difficult for the bulls to win this battle between bulls and bears.

not to mention……

Due to the huge loss, the fund's holdings have reached the forced stop-loss conditions under extreme risk conditions.

In this case, even if the subsequent market trends, market sentiment expectations, and the referendum results can be reversed, in order to avoid a further increase in fund losses and further reaching the fund's forced liquidation line, he has no other choice but to issue a stop-loss closing trading order.

"But all the longs in the market are in a stampede, and the main shorts in the market are constantly forcing us to close our positions," Flora said. "We simply cannot complete the concentrated closing of positions and stop-loss operations in a short period of time."

“We have to cut our losses though,” Yabuk said.

The basic logic of going long has disappeared, and a market stampede of longs killing longs has already formed. Then, according to trading discipline, you have to stop loss no matter how much you lose.

Otherwise, the pound exchange rate will continue to collapse downward, triggering an even more frantic stampede and extreme stop-loss situations.

I'm afraid that their entire fund product and all the funds will be lost here.

Seeing the cold sweat on Jacob's forehead and the pound exchange rate still falling rapidly without any resistance, Flora nodded helplessly. She could only quickly execute Jacob's trading instructions and close the long positions and stop losses as quickly as possible.

At the same time, Pacific Capital's confidence in its holdings collapsed and it had no choice but to concentrate on stopping losses.

Inside Vanguard Capital, Wall Street, USA.

Inside the Hong Kong hedge fund 'Hui Feng Huan Yu No. 1'.

Hedge Fund Trading Department of BNP Paribas Investment Bank, Paris, France.

Inside the Hong Kong city's 'Mitsui Jiayou Investment Company', 'Tianhe Capital', 'Hashimoto Investment'...

Many major long institutions around the world with positions of more than 10 lots are all doing the same thing, unconditionally stopping losses on their long positions.

Of course, at the same time.

Inside the institutions of Goldman Sachs, BNY Mellon, Blackstone Group, and Citigroup on Wall Street, USA.

London, UK, 'Barclays Bank', 'UBS International'.

Investment Trading Department of Nomura Bank, Tokyo.

The main hedge fund trading departments of Hong Kong's Huayin International, Huayi Capital, and Aberdeen Asset Evolution No. 1...

A number of major short-selling institutions around the world are basically performing unified operations, that is, taking advantage of the market's unilateral sell-off, the complete collapse of the long forces in the market, and the fact that the number of people in the market supporting Brexit still far exceeds the number of people supporting staying in the EU, to continue to increase their short positions and carry out continuous forced liquidation operations on the long groups in the market who have not yet stopped losses and left the market and have not yet closed their positions.

Among them, Su Yi is in charge of the main fund product trading department of "Hua Yi Cheng Yuan No. 1".

At this moment, the scale of short positions held by this fund product has reached nearly 41 lots, and its average holding cost has increased compared with before, reaching around 1.4850 points.

"Boss Su, our fund's floating profit has expanded to $40 billion."

When the fund's short positions and floating profits increased significantly at the same time, and its floating profits hit a new high, reaching the 40 billion US dollar mark, trading team manager Qu Zecai reported excitedly.

"Okay!" Su Yi nodded slightly, his eyes still calm, and said, "The pound exchange rate has fallen below 1.3900 points and actually broke through the 1.4000 point mark. Then our previous strategic plan has been preliminarily achieved. At this point, there is no need to continue to increase short positions. With a position size of 40 lots, it will be difficult to close the positions in a concentrated manner in the future. Continuing to increase short positions at this position is not cost-effective."

"Okay." Qu Zecai responded and quickly conveyed Su Yi's trading instructions to each trading group.

"The long positions in the market have completely collapsed. It should not be long before short positions are covered for profit, right?" After Su Yi issued a trading instruction not to continue to increase short positions, Meng Shengfei from Huayin International Investment Department 2 said in the instant messaging interface, "As the saying goes, long positions never die, and short positions never cease. Now the long positions in the market are dying rapidly. It feels like it is almost time to stop profit."

This is a drop of nearly 400 points from his previous profit-taking point.

This 400-point decline brought more than $7 million in profits to the Investment Department , which he was in charge of.

This also means that in this round of investment action on the pound exchange rate.

Just by investing in the second part, they have earned more than 20 billion US dollars from the pound exchange rate market and from many long-term institutions in the global capital market.

The profit scale is 20 billion US dollars!

This is basically the peak battle of his career.

Therefore, the strong desire to take profits that had been suppressed in his heart before could not help but surge up again at this moment.

Su Yi nodded slightly and said, "It is indeed almost the profit-taking stage, but the time is only 9:43, and more than half of the referendum results in various districts have not yet been announced. At the same time, the number of people who support Brexit only exceeds the number of people who support staying in the EU by about 30.

Under this situation, the expectation of a referendum to leave the EU did not materialize.

Expectations did not materialize.

This means that there are still many bulls in the market, especially bullish retail investors, who still have a certain degree of luck.

In the long position structure of the entire market, the long retail investors account for more than 60% of the share. If these long retail investors still have a fluke mentality, it means that the selling momentum in the market has not been fully released. Once the expectations are realized, I estimate that the pound exchange rate will have another round of sharp sell-off.

In fact, in terms of expectations and emotions.

At this time, the pound exchange rate broke through the final bullish defense line of 1.4000 points.

The biggest factor that caused many long-term institutions in the market to stampede to stop losses was not the referendum result at this time, but the Bank of England's abandonment of the exchange rate and the Bank of England's closing of long positions. Of course, if you think that there is a lot of uncertainty in subsequent news, it is also a perfect way to stop profit here. "

"Well, the uncertainty of subsequent news is still very large." Meng Shengfei said, "and the pound exchange rate has already plummeted by 1000 points. The expectation of Brexit has been fully digested by the market. Even if the Brexit result comes out later, I feel that there is a possibility of negative impact, which may cause the pound exchange rate to rebound. Relatively speaking... I still think it is more appropriate to take advantage of the current situation where short-selling sentiment is at its peak and long positions are fully stopped and closed to suppress the market, and concentrate on large-scale replenishment and profit-taking."

After saying that, Meng Shengfei spoke to the traders in the trading room again without hesitation.

A trading order for concentrated closing of positions and profit taking was issued.

At this time, the market is full of short-selling forces, and it is quite easy for him to close his positions and cover his profits.

It only takes tens of seconds or even one or two minutes to complete the hedging and closing of long positions for 20 short orders during the venting of short forces.

And just when he issued the trading order to close the position and take profit.

Kong Fansheng from the Investment Department of Huayin International Institution thought about it and also made a strategic operation of concentrated closing of positions and taking profits.

"Mr. Su, thank you very much for this joint investment." After issuing the order to close the position and take profit, Kong Fansheng said to Su Yi, "I hope we will have the opportunity to cooperate again in the future."

"No problem." Su Yi smiled and responded.

He did not feel too emotional about the two people's profit-taking and exit.

After all, the strategic plan has come to this point, and with the pound sterling exchange rate trend having formed a unilateral situation of longs killing longs, he no longer needs the huge amount of funds from Huayin International to defend himself against the strong counterattack of the bulls in the market.

Furthermore, at this time, Huayin International has Investment Department One and Investment Department Two.

He estimated that the two departments should have made a total profit of nearly US$40 billion, or nearly 300 billion Chinese yuan, from the pound exchange rate market.

Profits on such a huge scale.

This will bring him closer to Huayin International, an institution with a very strong state-owned background.

It will also make his future development path broader.

"Huayin International has already withdrawn, and the pound exchange rate has fallen to around 1.3800 points. Mr. Su still doesn't plan to concentrate on taking profits at this position?" After the two departments of Huayin International withdrew, Frederick, the main hedge fund product manager of Aberdeen Asset Evolution No. 1, said with a smile, "Mr. Su should have made a lot of money in this round of operations. Do you really want to eat a big fat man in one bite and achieve the goal of billion US dollars in floating profit on the pound exchange rate you mentioned?"