novelones Chapter 1409: Shorting the Nikkei Index
Chapter 1409: Shorting the Nikkei Index
As expected, the old Taoist completely refined the essence and blood after three days, but he fell into a deep state of enlightenment.
After ten whole days, I finally woke up. It was already the morning of January 16th.
He walked through the wall and disappeared without a trace.
The Xia family was just about to have breakfast when they suddenly saw the Taoist priest walk in, and their faces immediately lit up with joy.
The old Taoist sat down and asked, "What happened in the past ten days?"
Xia Chuan said: "It's okay, I'm going to the island country today."
"Okay." The old Taoist thought that something would happen after Xia Chuan left.
……
Xia Chuan arrived at the airport in a dignified manner, bought a ticket to Dongjing, and boarded the plane alone.
From the moment the plane took off, the news quickly spread around the world through intelligence networks of various countries.
Mo Rongjun didn't know this, as she was sitting in the office in a state of extreme nervousness.
Her leverage is too high.
If a big shark wants to blow her up, it's easy to do.
For a big shark like Goldman Sachs, it is like the big fish eat the small fish. First, identify the target and decide who to eat, then collect intelligence, conduct thorough research, and find the right time. If you go long, I will go short, and if you go short, I will go long.
Mo Rongjun is undoubtedly the most suitable target. She only has 200 million US dollars in funding, which is just the right size and shape.
Xiachuan was talking about shorting Nikkei index futures before the 17th.
Today is the 16th. Before this, the Nikkei index had been on a strong upward trend, but she still gritted her teeth and shorted large areas on the 15th. Not only did she short the Nikkei index futures, but she also did not let go of put options. They were all super leveraged. She made a fortune quickly, but also died quickly.
What a financial company does is usually decided by the traders themselves. Even if one trader goes long and another goes short, she won't care.
Just adjust the amount they can use based on each trader's winning rate.
But starting from yesterday morning, Mo Rongjun asked everyone to clear their positions and recover funds, and began to short the Nikkei Index futures.
Only short selling is allowed, hedging is not allowed.
The traders in the entire company had no idea what Mo Rongjun's basis was, but they firmly believed that there was an inside story because they all knew that Mo Rongjun's money came from Xia Chuan's paintings. This was well documented by the media. There was no doubt that Mo Rongjun and Xia Chuan were the same people.
Before the market opens, one of the best traders reminds:
"Boss, we can't increase our leverage today. If a big shark wants to swallow us up, they only need to raise the Nikkei index by 5%. Even if it plummets afterwards, we will be the first to go bankrupt."
In his opinion, this is simply a pure gambler who goes all in. If he wins, he will support a young model, and if he loses, he will go to work in the entertainment industry.
Mo Rongjun took a deep breath and suppressed her uneasiness. She certainly understood that the risk was here, but she didn't know the exact time of the crash.
The market plummeted on the 17th, and we can pull it up today, and any sudden events that follow will be useless.
But she had a feeling it was too late to short today.
……
In the office of JPMorgan Chase, Kasman was ready to give the order to push up the Nikkei index and eat up Mo Rongjun.
He was sure that the intelligence was correct and that the position would be liquidated if the price continued to rise by 5%.
Cassman didn't care about Xia Chuan's threats. He was sure that Xia Chuan would not intervene in the economic field by force, so the temptation of the two hundred million dollars was considerable.
As the market was about to open, he picked up the intercom and was about to give an order when another phone rang.
He picked up the phone at the same time, and the familiar voice of a Goldman Sachs trading manager came from the phone:
"Don't be long on the Nikkei. Xia Chuan has boarded a plane publicly, heading for Tokyo. Think about his promise, and think about why Mo Rongjun happened to short it a day in advance. There is also news that Liu Changsheng suddenly mobilized 10 billion funds to the Hong Kong branch. Guess what he is going to do?"
After he hung up the phone, Kasman felt a chill all over his body, secretly cursing himself for being blinded by the $200 million.
The market opened, the Nikkei futures opened low, and the trading volume was obviously larger than usual, but the Nikkei index still opened high. There was no doubt that Liu Changsheng had taken action.
Kasman hurriedly ordered: "Nikkei futures turn from long to short!"
……
The moment the market opened, Mo Rongjun could hardly believe his eyes. With such a huge selling pressure, could an emergency have happened?
All the traders shouted in uproar, excited as if they were given an injection of chicken blood. This was so fucking cool. The one-sided short selling was definitely not a short trap. No one could play a short trap to this level.
Mo Rongjun decisively ordered: "Add more positions!"
Futures are different from stocks. If the price drops when you short, there will be a book profit, and this profit can be used to continue trading.
Looking at the Nikkei Index, the futures index had a very obvious impact on its trend. It opened at 20790 points, then suddenly dropped 100 points, and then continued to fall. This is a real long position liquidation.
As for taking over, don't worry. There are always people who habitually take advantage of bargains but don't know how deep the pit is.
In the Hong Kong branch, Liu Changsheng looked at the market and the transaction returns, as calm as if he was on vacation. His experience was much richer than Mo Rongjun's.
Ten minutes later, he suddenly ordered: "Stop!"
The short selling stopped instantly. Kasman noticed that Liu Changsheng had stopped and immediately shouted, “Pull it up!”
No one dares to enter the market because of short selling. Are you stupid?
Therefore, the secret to building a position quickly is violent fluctuations.
The futures index rebounded quickly and recovered half of the losses in ten minutes. After all, it had just started to fall, and there was a lot of enthusiasm for bottom-fishing. They were all small institutions with no sources of information and insufficient grasp of the general trend. They only saw the huge profit opportunity of a rebound after a sharp decline, and then they attacked with heavy positions.
Liu Changsheng gave this group of leeks an order: "Go all out to short sell."
After half an hour of continuous suppression, the futures index plummeted again, occasionally rising for one minute, forming an obvious trap to lure more buyers.
The Nikkei index has plummeted 300 points.
Small institutions that bought at the bottom were hit hard.
The only thing that skyrocketed was put warrants, which are short options.
Short selling options are the best choice to make a small investment for a big return. If the stock price is 99 yuan, the short selling warrant may be only one yuan. If the stock price drops to 101 yuan, the put warrant will rise to 100 yuan, and she will make yuan.
One dollar can earn you a profit of one hundred dollars.
The profit margin here is even ten times higher than shorting futures. Unfortunately, the scale of the warrant market is limited, and the actual operation will be raised due to Mo Rongjun's involvement. It is impossible for her to invest all of it.
Therefore, the real big profit still comes from short positions in futures index.
……
It was almost noon when Xia Chuan got off the plane. He saw the head of the Defense Agency coming to greet him.
"Hello Mr. Xia, I am Tokuichiro Tamase, and I am here on behalf of Fuji Murayama to invite you to lunch."
He said this because Xia Chuan did not notify them in advance, so there was no need to greet them, but they had an agreement in advance. Xia Chuan was most likely here because of the earthquake, and it was obviously inappropriate to talk about it over the phone. The first person to know must be Murayama, so he spoke tactfully.
“It is an honor to have lunch with Mr. Murayama.”
Xiachuan followed Yuze into the car and drove directly out of the airport without going through the customs channel.
Yuze asked casually, "The Nikkei index plummeted this morning. What does Mr. Xia think about this?"