Eight Hundred and Fortieth Chapters the End of the War

As the days passed, the movement on the New York Mercantile Exchange grew louder and louder.

As longs and shorts continue to bet, the chips on the gambling table are like a golden mountain. Many institutions are tempted and raise their bets one after another, while ordinary investors become the melon eaters.

George Berkeley and Wang Qi from outside the United States also took their places one after another. Funds poured into the futures trading market like water, and they were quietly exchanged for copper futures and aluminum futures contracts.

The more you buy in the early stage, as long as you win later, the greater the profit from arbitrage!

Two weeks later.

All accounts of Galaxy Fund have held 58,150 lots of senior copper futures and 39,200 lots of aluminum futures, valued at over US$2 billion!

What has been exposed on the surface is only about one-third of the futures contracts worth US$700 million held by the Galaxy Fund.

But even though only one-third of it has been exposed, Galaxy Fund is still one of the most eye-catching bulls in the market!

Many bigwigs of financial institutions on Wall Street are very surprised, when did a powerful financial company suddenly appear on Wall Street!

Because Xia Yu secretly invested too much capital, even if the shorts were hedging, the prices of high-grade copper futures and aluminum futures still rose a lot. The latest opening price this morning, high-grade copper futures was 0.6025 US dollars / pound, and aluminum futures were $1.2125/lb.

"Boss, the news from Julian Robertson has confirmed that the company behind those accounts is Philip Brothers!"

In the New York branch of Galaxy Fund, Xia Yu just instructed the traders to continue to open positions. At this moment, Song Yang walked in with a solemn look and whispered in Xia Yu's ear.

Xia Yu was not frightened, but the corners of his mouth were slightly raised, and his expression was a little loose.

Obviously, Philip Brothers, the futures giant, is not afraid.

Of course he knew about Philip Brothers, and he had memories of his previous life. He was very clear about the future of Philip Brothers.

Don't look at the fact that Philip Brothers is now the largest futures company in the United States, but that's all, it ranks first in the futures market.

In other financial fields, Philip Brothers is far behind.

In terms of comprehensive strength, Philip Brothers is far less than Morgan Stanley, Merrill Lynch, Citibank and other companies.

So what else does he have to worry about?

Such a stepping stone is suitable for Xia Yu to step on no matter what, compared to Xia Yu's strength, it is just right!

"The news has already come out, and the next battle is going to escalate!"

Xia Yu said with a light smile, then looked at Song Yang and asked, "What did Xue He say, how is the situation on the Chicago Stock Exchange?"

Before coming, Song Yang had already spoken to Xue He on the phone, and already knew the situation, and immediately reported: "Boss, due to the influence of the New York Mercantile Exchange, the prices of high-grade copper futures and aluminum futures on the Chicago Board of Trade have risen. Now, the latest high-grade copper futures prices are $0.5995/lb and aluminum futures are $1.2430/lb.”

Although it is the same futures variety, there are differences in prices on different futures exchanges. Because of this difference, cross-market arbitrage transactions appear.

It’s just that the risk of cross-market arbitrage is high, and the same country is better. If the difference is excessive, the risk is even greater. For example, the stability of price comparison should be taken into account, such as tax rates, exchange rates, trade quotas, ocean transportation costs, production technology levels, etc. Changes in factors will have a great impact on the price.

In addition, there are market risk, credit risk, time exposure risk and policy risk.

Because of various risks, generally few institutions will cross-market transactions, and most of them rely on the price comparison reference of the same commodity in other futures markets. This extra-day factor is also a very important factor affecting futures prices.

Of course, there are no absolutes. If the price difference of the same commodity on different futures exchanges is too large and does not get close for a long time, it will definitely attract a large number of financial institutions to take risks to chase profits.

anyway.

Hearing Song Yang's report, Xia Yu made a quick calculation in his mind and found that the price of high-grade copper futures on the New York Mercantile Exchange was $0.003/lb higher, and the aluminum futures price was $0.0025/lb higher.

According to the number of futures held by Galaxy Fund today, this spread also contains a spread of nearly seven million US dollars.

Taking into account the overall market of high-grade copper futures and aluminum futures, there is at least a few hundred million dollars in the gap.

The difference is a bit big!

Thinking of this, Xia Yu immediately instructed Song Yang: "Call Xue He and order him not to stop, how can the amount of 300 million US dollars be enough! Within three days, the value of his futures will exceed 800 million US dollars. Add me a position and buy it!"

"Yes!"

Song Yang was shocked, and the voice in response subconsciously increased a bit.

Then, seeing Xia Yu waving his hand, Song Yang quickly left.

And Xia Yu continued to order traders to open positions.

The foreshadowing of the early stage is almost done, it is time to let go of the hands and feet to fight!

"Five hundred lots of advanced copper futures, open a position 0.1 cents higher!"

"500 lots of aluminum futures, open a position higher by 0.1 cents!"

As soon as Xia Yu's voice fell, the purchase order with a total price of more than 20 million US dollars was immediately hung up, and the market immediately fluctuated violently.

Just after the Galaxy Fund started, the rare metal futures department of Philip Brothers immediately discovered the situation.

Harlan Dryden was not stunned, and directly ordered the construction of a short position.

In less than five minutes, more than $30 million of funds in the advanced copper futures sector flowed into the market, stabilizing the price that was about to climb.

Of course, because the leverage is ten times, the margin is only $3 million.

Next door in the aluminum futures department, Sean Andrew gave the same order, and more than $25 million flowed into the market.

At this time, Albert Raphael stepped in hastily and immediately asked:

"Harlan, have the bulls stepped up their offensive?"

"Yes, it seems that the bulls can't wait anymore. In five minutes, I have already ordered people to sell 2,000 lots, otherwise the price really can't be pulled!"

Harlan Dryden replied sternly.

Albert Raphael narrowed his eyes, thought for a moment, and said, "Although the Galaxy Fund's holdings are only worth about 700 million US dollars, according to the calculation of the positions, they have definitely invested more than one billion US dollars, and they are indeed strong! "

"Since they don't want to wait anymore, let's do it too. The Galaxy Fund has invested such a large amount of money, and they don't want to back down. This is just right!"

"Harlan, execute the second phase plan!"

Harlan Dryden refreshed and smiled excitedly.

It's been a month since the very beginning, and he can't wait!

Restock!

Big increase! ! !

Both Philip Brothers and Galaxy Fund have begun to invest on a large scale, and the prices of senior copper futures and aluminum futures on the New York Mercantile Exchange have fluctuated violently.

The hundreds or thousands of orders that pop up from time to time make the people who eat melon gasp in amazement.

At the same time, Philip Brothers took the initiative to release bad news on senior copper futures and aluminum futures, and it was a research report that was already prepared.

Futures giant Philip Brothers turned out to be a big short!

This news made the other bears excited, sighing that they were on the right team, and raised their bets one after another.

And the bulls are all dignified, and there is no shortage of people who retreat due to lack of information.

The reputation of Philip Brothers in the futures market was built step by step by stepping on the corpse of the loser. Many small financial institutions are afraid of it, and it is normal to choose to retreat.

And I don't know when or where the news came from, all kinds of bad gossip spread wildly on the New York Mercantile Exchange, and spread on Wall Street at a very fast speed.

In an instant, the balance tipped towards the bears at a rapid rate, and the situation was very unfavorable for the bulls.

Faced with this situation, Xia Yu said nothing, waved his hand, and chose to increase his position to stabilize market confidence!

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