Chapter 645 Difficult Decision

Dahua Industrial Futures Department has already been ready. When the order is issued, it will start to close the position at a rapid speed.

In the process of closing the position, the price difference that was originally expected to converge has a trend of further expansion. This is because many traders found that millions of barrels of crude oil that should have been shipped to New York were transferred to London. This practice led to an increase in the inventory of London's delivery warehouse, while Cushing's inventory decreased. Step by step, the price in London has been reduced, which has led to the price in New York.

Taking advantage of this trend, Dahua Industry has almost fully included the profits of the spread contract, with a total amount of 5.2 billion US dollars, far exceeding Qi Xiao's expectations.

In fact, it is also a little beyond Sucheng's expectations.

Seeing this entry, Qi Xiao, who was busy, also spent three seconds in a daze. Xu Feng, the fourth sister who is far away in China, immediately called and asked Su Cheng, "In several accounts of our company, there is suddenly a large amount of money... I have counted it several times..."

"It's the company's profit. Let's talk about it in detail when I go back." Su Cheng interrupted her with a smile.

"So many of them?"

"Yes."

"How did you do it?" Although the fourth sister Xu Feng is not from a professional class, she is diligent and easy to learn. She is very suitable to work as a supervisor in the finance department of Dahua Industry. Most of the capital flows in the group are under her supervision.

Xu Feng has not seen a billion-dollar fund, but this is the first time that she has a one-time income of billions of dollars.

Su Cheng smiled bitterly and didn't know how to explain it. He said, "It's half luck and half of preparation. It's a little beyond my imagination, but there are proper procedures. You can also contact the banks of several accounts to see if there are any fees to be paid, and give it to them for processing."

Several of Dahua's main banks overseas are quite powerful large commercial banks, or local local leaders with tough backgrounds, which are the best at handling government relations.

The disadvantage of a spread contract compared with a pure futures contract is that it has to pay a handling fee to two exchanges. However, the handling fee of the futures exchange has always been very small, because it is essentially a club for members and is not for profit. Although Dahua Industry has earned billions of dollars, it can pay handling fees. But it is similar to those financial institutions that make millions.

As for taxes, there is nothing. The U.S. government in 1994 is discussing taxing futures exchanges to alleviate the current financial difficulties, but there is no result. Since Margaret Thatcher's small government and privatization, it is even more difficult for London to increase new taxes. At present, the futures trading tax is mainly collected in Japan, Finland, France and Hong Kong. Among them, Japan is taxed at two ten thousandths of the closing price, Finland is taxed at five ten thousandths of the closing price, France is a fixed transaction tax of 0.05 francs per order, and Hong Kong is 5 Hong Kong dollars for each transaction completed. The four regions are different, but in general, the futures tax is still a small tax, When it comes to levy taxes, the total amount is very small, and it doesn't matter.

In contrast, there are more fees for traders on the exchange and banks that provide leveraged funds, but it is only millions of dollars.

Therefore, Dahua Industry has made a profit of more than $5.2 billion through spread contracts, without all expenses, and there is still more than 5.2 billion left.

And Dahua Group has always been in the hands of Sucheng.

With this money in his hand, Su Cheng felt much more stable.

Qi Xiao was still excited, and his lips were dry and he said, "Su Dong, shall we buy another contract with a narrowing the gambling price difference?"

It is full of gambling, but it is also a normal idea. When the price difference is expanded to $2.2, the reverse purchase of a contract with a narrow price difference is low risk and high profit.

After all, where can the price difference of $2.2 be expanded? Whether it is an increase in the price of crude oil in London or a decrease in New York, the price difference between the two will be narrowed.

If you go back to the $1 range, it will be so much profit.

Now, it is estimated that there are many financial institutions that do this kind of contract.

However, when Su Cheng studied petroleum finance, crude oil spread contracts often exceeded $15, and even exceeded $20. The price difference of $2.2 could not make him feel safe, so he decisively refused: "It's enough to specy once. Now we need to close our short positions as soon as possible. What's going on with Sumitomo Corporation?

Qi Xiao's legacy was also relieved. He instantly adjusted his mood and replied, "Sutant doesn't seem to have any action. The possibility of quietly selling multiple orders can't be said to be no, but it's not too big. I asked someone to check the timely long and short trading. If Sumitomo reduces its position, we will find it.

Of course, Sumitomo has nothing to do. Sumitomo Trading Co., Ltd. and its allies have fallen into a sluggish state.

Just like the Pan-Asia Fund's heavy position holding empty orders can't easily retreat, Sumitomo Trading Co., Ltd. also holds many orders, so it can't come to a trip.

What's more troublesome is that because Matsumoto was supported by the headquarters of the trading company, some affiliated companies attached to Sumitomo trading company, as well as ally companies such as Ito Trading Company, have made heavy bets in the range of $15 to $16.

Of course, this is also their greed. They always feel that the price of crude oil of $16 and $15 is low enough. At worst, it is to wait for delivery and ship it back to China... However, in the 300 billion-dollar multi-air exchange of fire, it is basically impossible to wait for delivery.

From the average price of $16 to $17, the Pan-Asian Fund can earn $1 billion to $2 billion for every 10 cents, which is equivalent to liberating the margin of $1 billion to $2 billion, thus prying up $15 billion to $30 billion again.

On the contrary, Sumitomo and their allies have to lose $1 billion to $2 billion every time they see the price of crude oil fall by 10 cents. When this number is reduced to 50 cents, Sumitomo Trading Co., Ltd. needs to keep increasing the margin.

Otherwise, once the position is burst, all multiple orders will be sold directly by the system, and no matter how much money is sold, they don't want a single point of their margin, which is equivalent to a big loss and a loss.

Therefore, in order to avoid the explosion of positions, Sumitomo Trading Company has to keep investing more funds as a deposit.

When the price of crude oil falls below $15, there are very few banks willing to give Sumitomo Trading Company sufficient financial guarantees.

Sumitomo Trading Company itself is a financial trading company. At the beginning, they can get a steady stream of financial support from the trading company, even if it is a big loss.

However, when the bank funds of Sumitomo Trading Co., Ltd. are exhausted, there are very few banks willing to serve them as ATMs, and the amount is difficult to replenish their needs.

This is the opposite of the Pan-Asian Fund.

On the one hand, the seven shareholders of the TransAsia Fund are fully prepared. It took several months to win the financing support of banks from many countries through various means. On the other hand, on the other hand, the most important one is that the TransAsia Fund has always won.

Their margin is not getting less and less and almost exhausted, but more and more.

Therefore, in the later stage of the long and short war on the London International Crude Oil Futures Exchange, it has basically become more than 15 times the leverage used by the Pan Asia Fund, 10 times the leverage of companies such as Sumitomo Trading Co., Ltd., and even five times the capital gap is self-evident.

This is a $300 billion long and short bet. Even if it is leverage, it must be provided by a bank. Although Sumitomo has many assets, it does not have such a huge pool of funds.

Now, not to mention holding multiple orders to the delivery date, holding a huge amount of orders overnight can scare the old men of Sumitomo's board of directors out of Alzheimer's.

Whether it is Sumitomo Trading Co., Ltd. with assets of 300 billion yuan, Ito Trading Co., Ltd. with assets of 100 billion yuan, or soy sauce companies with assets of 10 billions of dollars, they also have tens of billions of billions of dollars in transactions every year. How can they put all the funds on the London Futures Exchange

The directors are willing, and tens of thousands of employees in other departments are not willing; the employees are willing, as well as the Japanese Finance Agency and the Ministry of Finance are not willing; if the Japanese are willing, the British will probably laugh out of Alzheimer's, which is hundreds of billions of dollars out of thin air, and it will be until August, September Only then will it be realized one after another.

Such a large amount of money may help Britain pull two points of GDP.

In the final analysis, such a huge amount of futures trading can only be short-to-air.

Wait for delivery? Billions of dollars can be done, and billions of dollars can be done, but it is useless.

empty? In small markets such as agricultural products, it is basically not feasible in crude oil futures trading, which accounts for half of the world.

Mato Matsumoto kept staying in the office of the exchange, holding the coffee cup in his hand and almost crushing it. After all, he didn't wait for the moment of rebound.

At 19 p.m., the secretary reminded as usual: "The manual disk still has half an hour to close."

Matsumoto's eyebrows stood up, and he habitually looked at the big screen: 14:22.

There is no need to look at the last two numbers. The first $14 makes him have no strength at all.

"So much money has been invested... Hirano, this guy." Matsumoto gritted his teeth. Since he came to London, the $15 beautiful window period has ended. He wanted to play any role, but he had no chance. Instead, he invested a lot of money, but it had no effect.

Although he is not sure that he can catch the beautiful $15 empty window, this does not mean that he will not blame Hidetomo Hirano.

Especially before making difficult decisions.

"Minister?" The secretary was worried that Matsumoto didn't hear clearly and wasted time. There was still half an hour left, and the manual disk was about to end. It's not like the TransAsia Fund signed three business seats in advance. Sumitomo Trading Company has always had only one of its own business seat, which is relatively low efficiency.

The decision on whether to hold the heavy warehouse for another night should be made in the next ten minutes.

Matsumoto couldn't help but pry his hair and asked in a low voice, "You can calculate, how much will you lose if you close the position now?"

To close the position is to leave the market, and there is no chance to turn over the capital at all.

If it's in the casino, it means that you don't even look at the cards and announce that you don't follow.

The secretary has been with him for a while. There is no need to calculate, that is, he said, "The loss is more than 5 billion dollars."

5 billion US dollars is one-sixth of the profit of the Pan-Asian Fund, which seems to be relatively small, but in smaller banks, such as the famous Bank of Bahrain, so much money is enough for them to fail.

Michimoto asked **, "Are you sure it's more than 5 billion dollars?"

"Yes."

"Will it exceed $6 billion?"

"This... can't be sure."

"Go and make sure." Matsumoto was rushed to the hospital.

The secretary was dumbfounded and stood still. How to confirm this? God knows what will happen if there is a huge number of multiple orders.

Matsumoto Michio also quickly woke up and turned his head and said, "Tell Tanabe to prepare for the liquidation."

Although the previous plan could not be realized, he did not want to be a "famous figure".

6 billion US dollars will be listed on the list of huge losses of Japanese financial companies.

The secretary did not fully understand and reminded himself, "Do you want to inform other trading companies?"

Matsumoto suddenly got up and said, "Shut up. Go and inform Tianbian, don't tell anyone.

At the moment of escape, you can't take care of your allies.

How can the friendship between companies be measured by hundreds of millions of dollars?

......RS