Chapter 321 I Just Want to Beat You

Chapter 321 I Want To Beat You Up

The entire foreign exchange market, which was originally lazy, became hot in an instant, and countless people began to make calls continuously. Because of the convenience of the Internet, many people operate at home, and do not need to go to some halls, or Is to go to the exchange.

But precisely because of this, many people will not pay attention anytime and anywhere, so some people with regular customers, especially those with big customers, naturally want to call their big customers as soon as possible.

But it doesn't matter whether they call or not, because all the long positions were directly liquidated, and many large short selling orders were directly smashed, which drove the exchange rate fluctuations and immediately began to fall at a terrifying speed.

Many people may not understand what short selling means.

Let’s use the simplest analogy. For example, if the market price of a stock is 100 yuan, if you predict that the stock will fall to 90 yuan, and you short-sell the stock there, then you will sell it at the price of 100 yuan. If you sell, for example, 1,000 shares, your account will earn 100,000 yuan, and interest will start to be accrued.

When this stock drops to 90 yuan, you will automatically repurchase 1,000 shares at a price of 90 yuan.

This is basically the operation of short selling. Of course, short selling on exchange rates is not the same as short selling on the stock market. In the foreign exchange market, short selling buys and sells currencies.

But the actual truth is similar, so short selling does not mean that you can sell short if you want to. You must have enough currency in your hand.

The problem is that Hu Fei has more than a dozen banks alone. Although a considerable part of these banks are regional banks and have no business in Southeast Asia, these banks can mobilize currency for Hu Fei through cooperation with other banks.

Therefore, Hu Fei has a lot of Malay currency in his hands. When Hu Fei started to sell a large amount of shorts, if there were no long positions, that is, people who bought up and added orders, then the exchange rate of Malaysian currency to US dollars would be lower. It will fall, which means that the Malaysian currency, the ringgit, will start to depreciate.

What are the consequences of a country's currency depreciation? I believe many people understand it without Hu Fei saying it.

A sharp depreciation of the currency means massive inflation in their country, and what it brings is that the money in the hands of the people will become less than before, and prices will rise. Those things like buying a piece of bread with millions of dollars will happen, of course, the value must be depreciated to a certain extent.

However, it is impossible for the government of any country to watch its own currency depreciate, because once a turmoil is formed, the end result is that the exchange rate will completely fall. At that time, domestic turmoil will begin, and the country will be swept away by a wave of wealth by international financial speculators.

Many people don't know how people who play finance in the world make money. In fact, that's how they make money.

And once these countries start to intervene, they will use their foreign exchange reserves to stabilize their own exchange rates, that is to say, they will increase long orders and fight against short sellers.

But in this way, if the short position cannot be won, it means that the country's foreign exchange reserves will be swept away by the enemy, that is to say, all the money will be lost.

But now, Hu Fei is doing such a thing, directly selling the ringgit. In just a few tens of minutes, the exchange rate between the ringgit and the US dollar has dropped by 7.6%. Terrible fluctuations.

The main reason is that Hu Fei has prepared enough information, and the emergency department of the Malaysian government has begun to intervene, and some long and long orders have also begun to appear, but these long and long orders can't hold the rhythm of Hu Fei at all.

These traders are all professional, and there is an entire financial team behind them, so Hu Fei doesn't have to worry about these. What's more, Hu Fei is using 20 times leverage for short selling here.

The so-called 20 times leverage is to use 1 US dollar as 20 US dollars, but there will be a margin for this operation. If you exceed the margin, you will be forced to close the position, which is the so-called liquidation, and you will lose all your money at that time.

If your margin is sufficient and your order can be maintained forever, then there is still a day for turning around. But Hu Fei naturally doesn't have to worry about liquidation. Although he doesn't know the exact number of funds he can mobilize, there are at least hundreds of billions of dollars.

According to the leverage ratio of 1:20, 1 trillion US dollars is equivalent to 20 trillion US dollars. Although the funds mobilized here may not be 1 trillion, even if it is only half, it is equivalent to 10 trillion.

Do these Southeast Asian countries have so many foreign exchange reserves? absolutely not.

More importantly, the matter is just beginning now, and the news will soon spread throughout the world, and then those international financial speculators will soon follow suit.

As for whether they follow Hu Fei or the Malaysian government, Hu Fei is not worried. Do you think those people on Wall Street are vegetarians? These people can quickly analyze the situation.

At that time, with the addition of these other funds, Malaysia will not be able to bear it at all. Hu Fei looked indifferently at the graph on the screen on the wall. Although Hu Fei was not proficient, Hu Fei could understand it.

In the office of a certain department in Malaysia, "Has the investigation come out? Who is attacking us?" Malay Prime Minister Mahat asked in a deep voice.

"For the time being, we don't know. The other party has at least several hundred bank accounts, but this incident is not such a coincidence. According to the analysis of our intelligence department, it is very likely that Hu Fei did it." A middle-aged man said directly.

Mahat's breath suffocated, Hu Fei?

"you sure?"

"It's very possible. After all, it's too coincidental. It's only a few days before and after." This person knows some secrets. After all, the Malay government also played some disgraceful roles in this matter. The outside world doesn't know how to respond. Something, but can some people not know what's going on?

Of course, it is definitely impossible for the government to handle specific matters. It is impossible for them to handle this kind of matter anyway. In that case, who in the whole country would dare to invest here? They can also be regarded as passive acceptance.

But no matter how passively you accept it, you are also acquiescing to some things, otherwise, there are some things that others dare not touch at all.

When Mahat heard this, he immediately thought of the sentence brought back by the other party at that time. Thinking about it now, is there any need to say it? This is so obvious that it must be Hu Fei. Hearing those words at the time, he still felt a little inexplicable, but now it seems... this is already a blatant warning.

"Help me contact the leaders of several other countries, and tell the financial department to use their foreign exchange reserves to stabilize the exchange rate at all costs."

"yes."

At the same time, inside the Guo family, after answering a few calls, the Guo family members all sat together.

"This...isn't it too arrogant? Did you directly attack the foreign exchange market?" Guo Xiaolin couldn't help but swallowed his saliva and said.

"Arrogance?" Guo Xiaotian gave a wry smile. These days, they were still guarding the spirit in the manor, but he checked Hu Fei's information. What is this? Hu Fei has done a lot more than this arrogant thing.