Chapter 1087: Brothers, the Opportunity for Revenge Has Come

"What, the Xiangyuan Hedge Fund has exploded?"

"Yes, the news just came out."

"Then what, what do you mean by liquidation?"

"It's just that they lost money."

"666... ​​This shit also has today, then I'll buy Huanyu Group."

There is no liquidation in stock trading.

Because no matter how much it rises or how much it loses, this is the real money of investors.

And no matter how much it falls, he will not become 0, so he will not be liquidated.

However, for some futures and options, it is different.

Because this is not physical delivery, nor is it a stock transaction, and he will also use a certain leverage.

Therefore, most options trading he must pay a margin.

When your loss exceeds the margin, it is a liquidation, which means that the brokerage platform will force your position to be closed.

Xiangyuan Hedge Fund shorted Huanyu Group, and the business it took was to buy short options.

For example, the current stock price of Huanyu Group is 100 US dollars. I bought a short option. When Huanyu Group drops to 70 US dollars, which is a 30% drop, then I can get a profit of 30 US dollars per share. If I buy 10,000 copies, that's a $300,000 profit.

But at this time, if Huanyu Group does not fall, but rises, for example, if it rises by 5%, then you will lose 5%.

Sure, a 5% loss doesn't seem like much, but what if you bought 1 million short options?

At $100 per share, one million shares is $100 million, and a loss of 5% is $5 million.

Well, $5 million isn't much for the Xiangyuan hedge fund.

So, at this time, he also used 100 times leverage?

The loss, then, is not 5 million, but 100 times the 5 million, which is $500 million.

If the margin of the Xiangyuan hedge fund falls below $500 million,

Then he immediately exploded.

After the liquidation, even if the stock fell to the point he originally expected, he would not have any return of 1 cent.

There is a bit of complexity here.

Many ordinary investors may not understand.

But it doesn’t matter if you don’t understand, as long as you know that a liquidation will result in a loss, and it is a huge loss.

"I'm sorry, the retail investors in the wsb forum are really powerful."

"Of course, a retail investor can't deal with Xiangyuan, 10 retail investors, 100 retail investors, 10,000 retail investors, 100,000 retail investors? Xiangyuan hedge fund will also be finished."

"Let me tell you, there is also a leading big brother in the wsb forum. He used to be the vice president of America Online. This time, he is in charge of the war with the organization."

"Brothers, some experts in the industry predict that the liquidation of the Xiangyuan hedge fund may mean that the share price of Huanyu Group will rise to $150."

"$150, I mean, is it true?"

"of course it's true."

"Don't wait, I want to buy the shares of Huanyu Group.

Huanyu Group's stock price is only $105 now, which is still a long way from $150.

At this time, it was reported in the market that the Xiangyuan Hedge Fund was finished, but a group of retail investors who had been watching the play outside the market frantically poured into the Huanyu Group.

"I buy, I buy, I buy, buy, buy."

"Kill that Xiangyuan hedge fund to death."

"Hurry up, brothers, it's time for revenge."

Although liquidation is very common, for institutions, liquidation is not common.

Often a certain institution or a certain hedge fund has a liquidation, which means that they have suffered extremely heavy losses.

At this time, the Xiangyuan hedge fund exploded its positions, which gave a lot of retail investors a boost.

It's all over for shorts, what does that mean?

This means that Huanyu Group is about to rise sharply.

"what happened?"

"My God, why did the buying increase so much all of a sudden."

"Oh, God, Huanyu Group rose to 10%."

The heads of the agencies were stunned.

They can see from the disk before that a lot of retail investors can't stand it anymore.

Unexpectedly, after a few minutes, the disk changed instantly.

I don't know where I can't resist the original, and suddenly a large amount of money came.

Although each of the funds is not much, some are tens of thousands of dollars, and some are only a few thousand dollars.

But no amount of money can hold up more people.

The retail investors flooded in like a tide, and the Huanyu Group launched a rocket directly.

From the original $105, it jumped to $110.

"I'm going, this is it?"

"Impossible, it's impossible."

"Everyone, have you released the water?"

Andrew couldn't believe it.

"Let the water, put your sister's water, do we have the water?"

"Why is the surface like this without water?"

"You ask me, and I want to ask you too."

"Everyone, we have an agreement."

"Damn, don't take the agreement to talk about things, we really didn't do anything."

"Then how do you explain it?"

Pointing to the 10% increase, Andrew was completely angry.

They bought the short option of Huanyu Group, and they still smashed 100 times the leverage.

The more Huanyu Group rises, the more they lose.

Don't underestimate the rise of only 10 percent.

But now, they have incurred a loss of $300 million.

Fortunately, they are strong in Xiangyuan, and their margin is relatively sufficient.

If not, just like this, their Xiangyuan will have to explode.

However, Xiangyuan did not explode, but the news about Xiangyuan's explosion in the media market soon came out.

"Andrew, are you out of stock?"

Looking at the news from the media, several agency leaders asked.

"Explosion?"

Andrew shook his head: "How is it possible, how can we liquidate our positions."

"Andrew, don't hide it, the media broke it out."

"Bull shit. You don't know the strength of your Xiangyuan, let alone that we haven't been liquidated, even if we are really going to liquidate, we can still increase the margin... What, you said that the media reported the news of our liquidation? "

"right."

"Where?"

"You can just search the Internet, it's everywhere."

"Oh shit……"

Andrew opens the Yahoo page.

Sure enough, the headline on the front page of the homepage was the rumor that the Xiangyuan hedge fund had exploded.

"Grass, who did it?"

Andrew cursed.

He knew that their Xiangyuan had been screwed up.

"Release the news to the media immediately, the previous news of the liquidation was fake."

For the first time, Andrew took public relations measures.

It's just that although Andrew acted quickly, countless spectators directly ignored the statement of the Xiangyuan hedge fund.

Even a group of netizens frantically started the Xiangyuan hedge fund.

"When the position is liquidated, the position will be liquidated. Is it necessary to deceive everyone?"

"Hey, Xiangyuan, you have today too, I'm going to die for you."

"Didn't you publish the short-selling report of Huanyu Group? Come on, continue to short."

"I want to know, how much did you lose?"

It can be said.

Hedge funds like this are notorious.

Before, many people had nothing to do with them, but now it is really heartwarming to see the Xiangyuan hedge fund bursting out.

Even if they explained the statement, the audience would not ignore him.

Even as soon as the statement of Xiangyuan Hedge Fund was released, the stock of Huanyu Group rose by another 5%.

Yes.

The original increase was 10%, and now it has risen to 15%.

That gain is nothing for some small-cap stocks.

But for Huanyu Group, which has a market value of US$180 billion, a 15% increase is staggering.

But it didn't end there.

After the share price of Huanyu Group rose by 15%, this aroused the enthusiasm of many retail investors.

"Brothers, go ahead, Xiangyuan is over."

"Look, as soon as Xiangyuan issued a statement, the stock price of Huanyu Group rose sharply. This proves what, it proves that they are really liquidated."

"Yes, I didn't expect them to have today. I will invest all of my wealth in the Huanyu Group."

then.

A miraculous phenomenon occurred.

With the addition of retail investors in the sky, the share price of Huanyu Group is no longer under control.

up 17%.

up 20%.

up 25%.

up 30%.

up 32%.

In the last 10 minutes of late trading, Huanyu Group had another rocket launch, which exploded by 40%.

And this time.

Looking at the account of the Xiangyuan hedge fund, they have lost $1.2 billion.

Take another look at their margins.

Andrew gasped in fright.

As long as Huanyu Group rises by another 1%, their Xiangyuan hedge fund will really blow up.

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