v3 Chapter 1200： The net profit is more than 500 million US dollars!

Soon, New York light crude oil futures quickly broke through the price of 29 US dollars per barrel and continued to fall.

In theory, the price of futures is higher than the price of spot.

Because futures price = spot price + related expenses.

These related expenses include storage fees, management fees, interest on capital occupation and so on.

Therefore, the futures price should be higher than the spot price, and the price of crude oil futures should not fall below $29 a barrel.

But there is no absoluteness, the theory is only the theory after all.

What's more, oil futures are very different from other commodities. It is normal that futures prices and OPEC prices are sometimes separated.

After all, although OPEC occupies an absolute leading position in the international oil market, and even rides on the heads of European and American countries, this does not mean that OPEC's prices are 100% guiding.

In later generations, the separation of oil futures prices and oil spot prices is a frequent matter.

At this time, OPEC lowered oil prices and announced an increase in production, which violated the interests of oil-producing countries such as Latin America.

But I don’t want to think about it. Now Latin America and other oil-producing countries are barefoot and heavily in debt. They can only rely on exporting oil and minerals to increase their income.

In order to survive, it’s better to be cheaper than not to sell, right?

Therefore, most institutions have judged that OPEC's reduction of oil prices will only force non-OPEC oil-producing countries in Latin America except Venezuela to lower their prices!

Although Latin America and other countries have not yet reacted to it, this general trend is certain!

In order to eliminate debts, European and American countries will also give priority to buying oil from debtor countries such as Latin America.

Therefore, the price of a futures contract of $29 a barrel is not the bottom line at all!

The major shorts seized the opportunity, suppressed the price on a large scale, and tried to blow up the long positions!

According to a margin rate of 5%, many long positions are opened at a price of more than 30 US dollars a barrel. As long as the price is lower than 28.5 US dollars a barrel, most long positions will have to liquidate their positions, even to make up the margin. Time is too late!

...

"Quickly, quickly close the position!"

The New York branch of Nomura Securities Co., the atmosphere is extremely tense at this time, especially the department responsible for direct operation of oil futures, all of them are on fire.

Even Shuren Ishikawa, president of Nomura Securities' New York branch, personally took command.

After all, at the beginning, Nomura Securities only invested US$100 million in margin to do long oil futures. However, the short-sales power greatly increased afterwards. Nomura Securities invested another US$50 million to cover long positions at US$29.96.

Therefore, Nomura Securities has invested 150 million U.S. dollars in capital, which has been scaled up to 3 billion U.S. dollars to operate.

After OPEC announced a reduction in oil prices, losses were doomed, and Ishikawa Shuren's goal was to hope that the losses could be smaller.

But who knew that the short offensive was so fierce that the price fell below $29 in just over two minutes after the opening.

Moreover, there are still a steady stream of low-price sell orders in the market, and the prices are lower than one, but there is no institution to buy!

Obviously, the price has not fallen to the psychological level of the institution that wants to buy bottoms, and there is no time to enter the market.

But Nomura Securities can't wait!

Seeing that the price quickly dropped to 28.75 US dollars a barrel, Ishikawa Shuren's muscles were tight, and his whole body became tense!

Because the first batch of US$2 billion worth of contracts bought before was opened at the position of a barrel of US$30.18.

If you have been unable to lighten your position and wait until the price drops to 28.68 US dollars a barrel, then the 100 million US dollars margin will be equal to the floating loss!

Once it falls to 28.67 US dollars a barrel, the floating loss will be greater than the margin amount, and the position will be liquidated!

And for the second time to open a position at 29.96 US dollars a barrel to buy a billion-dollar contract, the liquidation line is 28.47 US dollars a barrel, once it drops another 0.01 US dollars a barrel, the position will also be liquidated!

But now, there is no single-handed sale of oil futures contracts totaling US$3 billion!

It's all still in hand!

"President, the funds have been mobilized, do you want to make up the deposit immediately?"

At this moment, Kaede Kojima, manager of the oil futures operations department, hurriedly came to Ishikawa Shuren and quickly reported.

Shuren Ishikawa's eyes were round and bloodshot, and his eyes were fixed on the curve.

$28.73!

$28.71!

The downward momentum is still rapid!

Ishikawa Shuren shook his head abruptly and made a difficult but wise decision. He said in a hoarse voice: "If you don't make up, let it blow up!"

Kojima Feng clenched his fist tightly, then let it go, replying with a heavy heart: "Yes!"

In fact, at this point, it will be useless to make up the margin or not.

The position has never been closed. Even if the position is liquidated and the position is forcibly closed by the exchange, it may still not be closed, so why bother to make up the margin?

Let the exchanges force them to liquidate their positions. At least they may escape first and sell them at a higher price.

In this way, after losing the margin, they will have to make up less funds.

It is better to keep the funds in your hands first, at least you can have more initiative, the two billion US dollars of contract can not be saved, no need to struggle.

A few seconds later, the price fell to 28.67 US dollars a barrel, and the floating loss was greater than 100 million US dollars of the margin, which instantly triggered the exchange's mechanism and the exchange forced the liquidation!

And this is not the end!

The price of New York light crude oil futures continues to drop, making Ishikawa Shuren's nerves tighten.

But at this time, he felt very weak.

In the face of this general trend, he can't do much at all. What he can do the most, maybe just pray.

Pray that the price will not exceed 28.47 US dollars a barrel, otherwise the other billion US dollars of contracts will also be liquidated.

But sometimes, the more you don't want something to happen, the more it will happen.

During the high volatility period some time ago, although there were many changes, no matter whether it was long or short, the profit margin would not be too large. Even because of the large fluctuation range, the profit earned in the front had to be vomited out later.

So no matter whether it is short or long, the profit is not big.

It's rare that this time fits the sky, with OPEC assists, and the bears don't try their best to grab the benefits?

Therefore Sixteen minutes after the opening of the New York Mercantile Exchange, the price of New York light crude oil futures fell below 28.46 US dollars a barrel, and Nomura Securities once again sold out!

And futures prices continue to fall!

Ishikawa Shuren was desperate, but after all he fell below!

When someone is worried, others are happy.

The Tiger Fund and Bridgewater Fund are naturally happy parties.

When the price of New York light crude oil futures fell to $28.14 a barrel, the two funds opened positions to buy futures contracts to hedge their previous short positions.

The two funds together hold more than US$8 billion in futures contracts, both of which opened short positions at a barrel of US$30.15.

Now I opened a position to buy at a price of $28.14 a barrel, and soon bought a large number of sell orders.

After buying the same amount of futures contracts, the two funds made a total profit of 533,33 million US dollars!

As for Nomura Securities, although the first batch of contracts bought at a cost of US$2 billion broke out at a price of US$28.67 a barrel, the second batch of contracts bought at a price of US$28.46 a barrel broke out at a price of US$1 billion.

But he just kept lowering the price and was only sold when Bridgewater Fund and Tiger Fund bought.

Therefore, in addition to losing the margin, Nomura Securities has to increase the compensation, otherwise it will cancel the futures seat and there will be other troubles.

Adding to the back-paid losses, Nomura Securities has a cumulative loss of US$195.94 million!

It can be more than one-tenth of the total assets of Nomura Securities' U.S. branch!

Ishikawa Shuren immediately covered the lid, for fear that this news would be exposed and cause huge trouble to the company!

PS: There is a social gathering today, and I drank it in a silly way and started a chapter of the spirit. After checking it several times, the logic should be correct. Everyone should rest early!