v3 Chapter 844： The end of the war

As time goes by, the movement in the New York Mercantile Exchange is getting bigger and bigger.

With the continuous betting of longs and shorts, 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 crowd.

Outside the United States, George Berkeley and Wang Qi also took their place one after another. Funds poured into the futures market and quietly exchanged for one-handed copper futures and aluminum futures contracts.

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

Two weeks later.

All accounts of Galaxy Fund have held 58,150 lots of advanced copper futures and 39,200 lots of aluminum futures, worth more than 2 billion US dollars!

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

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

Many financial institutions on Wall Street are very surprised. When will 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 advanced copper futures and aluminum futures still rose a lot. The latest opening price this morning, advanced copper futures is 0.6025 US dollars / pound, and aluminum futures are USD 1.2125/lb.

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

In the New York branch of Galaxy Fund, Xia Yugang directed the trader to continue to build positions. At this moment, Song Yang walked in with a solemn expression and whispered in Xia Yu's ear.

Xia Yu was not frightened, instead the corners of his mouth slightly cocked, his expression a little loose.

Obviously, I am not afraid of the futures giant Philip Brothers.

Of course he knew about Philip Brothers, and he had memories of past lives. He knew the future of Philip Brothers very well.

Not to mention that Philip Brothers is now the largest futures company in the United States, but it is only that, ranking first in the futures market.

In other financial fields, Philip Brothers is far behind.

In terms of overall strength, Philip Brothers is far behind Morgan Stanley, Merrill Lynch, Citibank and other companies.

Then what else does he worry about?

Such a stepping stone is suitable for Xia Yu to step on no matter how it looks. Compared with Xia Yu's strength, it is not too big or not too small!

"The news has been spread, and the next battle will escalate!"

Xia Yu said with a light smile, then looked at Song Yang and asked: "What did Xue He say, what's the situation with the Chicago Stock Exchange?"

Before coming, Song Yang had already talked to Xue He on the phone and was already aware of the situation. At this time, Limahui reported: "Boss, under 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 both increased. Now, the latest advanced copper futures price is 0.5995 US dollars/lb, and the aluminum futures price is 1.2430 US dollars/lb."

Although it is the same kind of futures, the price is different in different futures exchanges. Because of this difference, cross-market arbitrage trading has appeared.

It’s just that cross-market arbitrage is more risky, and it’s better in the same country. If the difference is excessive, the risk is greater. For example, the stability of the price should be considered, such as tax rate, exchange rate, trade quota, ocean shipping cost, production technology level, etc. Changes in factors will have a great impact on prices.

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

Because of various risks, generally few institutions will trade across the market, and more often rely on the price comparison of the same commodity in other futures markets. This kind of out-of-hours factor is also a very important factor affecting futures prices.

Of course, there is no absolute thing. If the spread of the same commodity on different futures exchanges is too large and they do 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 quickly calculated in his mind, and concluded that the price of advanced copper futures on the New York Mercantile Exchange was as high as $0.003 per pound, and the price of aluminum futures was as high as $0.0025 per pound.

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

Considering the overall market of advanced copper futures and aluminum futures, there is at least a few hundred million US dollars in spreads.

The price difference is a bit big!

Thinking of this, Xia Yu immediately told Song Yang: "Call Xue He and order him not to stop. How can the 300 million dollars be enough? Within three days, the value of his futures will exceed 800 million dollars. Give me a plus to buy!"

"Yes!"

Song Yang's body was shocked, and his voice in response raised subconsciously.

Then, seeing Xia Yu wave his hand, Song Yang walked away quickly.

And Xia Yu continued to order the trader to build positions.

The initial preparation is almost complete, it's time to let go of your hands and feet to fight!

"Five hundred lots of advanced copper futures, opening a position with a high of 0.1 cent!"

"Aluminum futures 500 lots, 0.1 cents higher to build a position!"

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

Immediately after the start of the Galaxy Fund, the rare metals futures department of Philip Brothers discovered the situation.

Harlan Dryden didn't froze, and directly ordered the short position.

In less than five minutes, more than 30 million US dollars of funds in the advanced copper futures department flowed into the market, stabilizing the price that is about to climb.

Of course, because the leverage is ten times, the margin is only three million dollars.

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

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

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

"Yes, the bulls seem to be unable to wait. In five minutes, I have ordered someone to sell two thousand lots, otherwise the price would really be too much!"

Harlan Dryden replied solemnly.

Albert Raphael narrowed his eyes, thinking for a moment and said: "Although the Galaxy Fund's open position is only worth about 700 million US dollars, based on the calculation of the position, they absolutely invested more than 1 billion US dollars, and they are really 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, so I don't want to back down. This is just right!"

"Harlan, implement the second phase plan!"

Harlan Dryden refreshed and smiled excitedly.

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

Increase!

Significant increase! ! !

Whether Philip Brothers or Galaxy Fund, they all began to invest on a large scale, and the prices of advanced copper futures and aluminum futures on the New York Mercantile Exchange fluctuated violently.

From time to time, hundreds or thousands of lots of a single volume made the people who eat melons exclaim.

At the same time, Philip Brothers took the initiative to release bad news about advanced copper futures and aluminum futures and it is a research report that has already been prepared.

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

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

The bulls are very solemn, and there are no shortage of people who flinch from lack of information.

The reputation of Philip Brothers in the futures market is being stamped out step by step by stepping on the bodies of losers. Many small financial institutions have attacked them, and it is normal to choose to back down.

And I don’t know when or where the news came from. Various bad news went viral on the New York Mercantile Exchange and circulated on Wall Street at an extremely fast speed.

In an instant, the balance tilted toward the bears at an extreme speed, and the situation was very unfavorable for the bulls.

Faced with such a situation, Xia Yu said nothing, with a big wave, chose to increase the position and stabilize the market confidence!

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