Chapter 1089

"What, Xiangyuan hedge fund broke its position?"

"Yes, the news just came out."

"Then what, what does it mean to break the warehouse?"

"They are losing money."

"666... It's also today. I'll buy Huanyu Group."

There is no explosion in stock trading.

Because no matter how much it goes up or how much it loses, this is the real gold and silver of investors.

And even if he falls more, he won't become 0, so he won't break his position.

However, for some futures and options, that's different.

Because this is not physical delivery, nor is it stock trading. At the same time, he will use certain leverage.

Therefore, he must pay a margin for most option transactions.

When your loss exceeds the margin, it is a position explosion, which means that the brokerage platform will force you to close your position.

Xiangyuan hedge fund shorting Huanyu Group takes the business of buying short options.

For example, the current share price of Huanyu Group is US $100. I bought the short option. When Huanyu Group falls to US $70, that is, 30%, then I can get a profit of US $30 per share. If I bought 10000 copies, it would be a profit of $300000.

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

Of course, losing 5% doesn't seem like much, but what if you buy 1 million short options?

$100 per share, 1 million shares is $100 million, and a loss of 5% is $5 million.

Well, $5 million is not much for Xiangyuan hedge fund.

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

Then, the loss is not 5 million, but 100 times of 5 million, that is $500 million.

If the margin of Xiangyuan hedge fund is less than $500 million, he will break his position directly.

After the position burst, even if the stock fell to the point he had expected, he didn't have any money back.

It's a little complicated.

Many ordinary investors may not understand.

However, it doesn't matter if you don't understand. As long as you know that the position explosion will produce losses, and it is a huge loss.

"I grass, WSB retail forum is really awesome."

"Of course, one retail investor can't deal with Xiangyuan. What about 10 retail investors, 100 retail investors, 10000 retail investors and 100000 retail investors? Xiangyuan hedge fund has to die."

"Let me tell you, there is also a leading brother in the WSB forum. He was the vice president of AOL. He was in charge of this war with institutions."

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

"150 dollars, I grass, is it true?"

"Of course it's true."

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

Now the share price of Huanyu Group is only $105, which is still a long way from $150.

At this time, it was reported that Xiangyuan hedge fund was finished, and a group of retail investors who had been watching the play outside the market were crazy pouring into Huanyu Group.

"I buy, I buy, I buy."

"Kill that Xiangyuan hedge fund."

"Hurry up, brothers, the chance for revenge is here."

Although it is common to burst positions, it is not common for institutions.

Often a certain institution or a hedge fund breaks its position, which means that they have suffered extremely heavy losses.

At this time, the position of Xiangyuan hedge fund burst, which simply gave a boost to a group of retail investors.

Short selling is over. What does that mean?

This means that Huanyu Group is about to rise sharply.

"What's going on?"

"My God, why did the buying increase so much all at once?"

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

The heads of a number of institutions were stunned.

Previously, they could see that a group of retail investors could not stand it.

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

I don't know where a large amount of money came from.

Although each of these 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 many people.

Retail investors poured in like a tide, and Huanyu Group launched rockets directly.

It jumped from $105 to $110.

"I'll go. What's this?"

"No way, it's impossible."

"Everybody, did you release water?"

Andrew couldn't believe it.

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

"Why is the dish like this without water?"

"You ask me, I also want to ask you."

"Everybody, we have an agreement."

"Shit, don't talk about the agreement. We really didn't do anything."

"How do you explain?"

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

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

The more the Huanyu Group rises, the more they lose.

Don't underestimate that the rise is only 10 percentage points.

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

Fortunately, their Xiangyuan strength is strong, and their margin is relatively sufficient.

If not, just like this, they will have to break their positions directly.

However, Xiangyuan didn't break the warehouse, but the news about Xiangyuan breaking the warehouse in the media market soon came out.

"Andrew, did you break your position?"

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

"Burst?"

Andrew shook his head: "how is it possible, how can we break our position."

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

"Blow a fart. You don't know the strength of Xiangyuan. Don't say that we haven't been blown out. Even if we really want to blow out, we can increase the margin... What, you said the media reported that we broke out?"

"Yes."

"Where is it?"

"You can search the Internet everywhere."

"Shit..."

Andrew opens the Yahoo Web page.

Sure enough, the headline on the front page of the home page is the rumor that Xiangyuan hedge fund broke its position.

"Grass, who did it?"

Andrew cursed.

He knew that their sweet fate had been messed up.

"Immediately release the news to the media. The news of breaking positions was false."

For the first time, Andrew took public relations measures.

Although Andrew acted quickly, countless onlookers directly ignored the statement of Xiangyuan hedge fund.

Even, a group of netizens crazily picked up Xiangyuan hedge fund.

"If you break your position, you'll break your position. Is it necessary to deceive everyone?"

"Hey, Xiangyuan, you also have today. I owe you."

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

"I want to know how much you lost?"

so to speak.

Hedge funds like this are notorious.

Many people had no choice but to take them. Now it's really gratifying to see the explosion of Xiangyuan hedge fund.

Even if they explained, all the spectators wouldn't bird him.

Even as soon as the statement of Xiangyuan hedge fund was released, the shares of Huanyu Group rose 5% again.

yes.

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

This increase is nothing for some small cap stocks.

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

But it's not over.

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

"Brothers, rush, Xiangyuan is over."

"Look, as soon as Xiangyuan issued a statement, the share price of Huanyu Group rose sharply. What does this prove? It even proves that they really broke their positions."

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

therefore.

A magical phenomenon appeared.

With the participation of retail investors, 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, Huanyu Group launched another rocket, up 40%.

And now.

Look at the account of Xiangyuan hedge fund. They have lost $1.2 billion.

Look at their margin.

Andrew gasped with fear.

As long as Huanyu Group rises another 1%, their Xiangyuan hedge fund will really burst its position.