Chapter 384 The Routine
As September drew to a close, both indices fluctuated, showing signs of consolidation at high levels.
A piece of news caught Xing Baohua's attention.
The United States paid close attention to West Germany's interest rate hikes and consistently kept West Germany's interest rates stable and even declining.
If West Germany does not lower interest rates, then the United States will use the devaluation of the US dollar to force the other side's economy to decline.
That's a bit too forceful.
With no one optimistic about the global economy, the United States suddenly pulled this stunt.
This sends a clear signal that the US dollar is about to depreciate, giving themselves a way out.
Currency devaluation is caused by a variety of factors, the biggest of which is simply making the printing presses burn out.
Actually, the US printing presses have been smoking for several years now.
When the Plaza Accord was being drafted by the Japanese, the amount of money printed was increased.
They've been doing this year after year, whether you like it or not.
Xing Baohua sensed something unusual.
He stared at the Dow Jones index at 2700, feeling that it couldn't reach that level.
I got up from my office chair, walked over to the technical chart, and carefully examined it to find the most likely resistance level.
Without the betting agreement, Xing Baohua would have started planting seeds of trouble long ago, gradually shorting the market, which would have simply driven up the margin requirements.
With that agreement in hand, Xing Baohua could only try to find a higher point, since there was a difference of a thousand points.
Afterwards, we went to the analyst's office to study the upper resistance level together.
After a morning of discussion, Xing Baohua decided to place a short order around 2650.
As soon as the message was sent, the traders immediately took action.
All accounts were opened, and short positions were initiated. The surge in short orders caused jubilation among many individuals and smaller institutions.
Sell off, sell off.
You can get money just by selling, which is different from panic selling.
This kind of single order only forms a transaction when someone else places a buy order.
Panic selling occurs when there are no buyers to take over, which could lead to a sharp drop in price.
The emergence of a large number of short positions also caused a small-scale decline, but this was only temporary, and the long positions remained firm.
Xing Baohua told the traders to buy as long as the price goes up, no matter how many points it goes up, and to short the market!
In this way, Xing Baohua established one defense line after another.
With the price increase, for every 1 point increase in the 2650 order at the low price level, he would lose 20 points of money according to the leverage principle of 20 times.
If one point equals one dollar, he loses 20 dollars.
His margin will continue to decrease, and when it decreases to a certain amount, the brokerage firms will ask Xing Baohua to add more margin to ensure that his account will not be liquidated.
Xing Baohua's traders and analysts all became nervous, given the amount involved was over 20 billion yuan.
This is also the largest individual institution ever to play our exciting game.
It wouldn't be an exaggeration to call it a bet of the century.
Xing Baohua took some time to call Zhao Shanhai and told him to take immediate action once the market opened there.
Due to the time difference, Zhao Shanhai could only wait.
From Europe to the Asian market, Xing Baohua was ready. After a few phone calls, Japan, South Korea, and other places had already taken action.
In Hong Kong, Xing Baohua called each shareholder individually to discuss the matter.
Tell them to keep their funds safe and prepare to support the market.
This was the best advice Xing Baohua could offer; whether or not he listened was beyond his control.
The purpose of this phone call was to tell the shareholders not to ask him for money when a stock market crash occurs.
He's currently tied up in various markets, barely able to support himself, and can't spare any money to help them.
He said all the nice things he could and did everything he could to be kind and righteous.
Don't be fooled by Xing Baohua's short selling, which caused a small rebound. His volume is negligible compared to the large market size.
Those small and medium-sized institutions are the ones who are happy. Xing Baohua has already set the entry point at 2560 points. Today it has already reached 2561.67 points.
Based on this calculation, anyone with a discerning eye can roughly estimate how much Xing Baohua lost and how much of his deposit was used.
After calculation, everyone was shocked by the amount of money Xing Baohua had.
There was nothing he could do; he had already done his best, borrowing all the money he could and throwing it all in.
If he survives until early October and doesn't suffer a margin call, then call him the world's richest man, a super-rich man.
If someone's account is liquidated, it'll probably be Xing who gets wiped out.
Even if I went back to my hometown and worked as a screw tightener for a hundred lifetimes, I still wouldn't be able to pay off this debt.
He gambled his entire fortune, and did so openly and honestly, earning him the title of the world's number one madman from the media.
September has passed, and we've entered October 3rd.
The stock market is slowly rising, but even though the increase is slow, Xing Baohua is losing tens of millions of yuan every day.
The branch office employees work in a very stressful environment, the kind where you don't even dare to breathe.
Only the traders and analysts could still make a lot of noise.
nervous.
Everyone felt tense.
They were terrified that Xing Baohua's margin call would lead to bankruptcy and their own unemployment. Finding a decent job in the US is extremely difficult, especially on Wall Street.
Xing Baohua occasionally appears in the trading room, staring at the computer for long periods without moving.
Sometimes I'll ask the traders and quote providers if the price and time are synchronized.
At first, everyone thought the boss was worried about delays in internet information from the United States. However, after the order clerk repeatedly corrected the time over the phone, the delays were reduced to mere seconds.
Xing Baohua finally smiled a little and turned to tell Huang Xingyao to find someone to buy a few video cameras and cassette tapes.
Have someone in the company who can take photos document the scene of the order being placed.
One of them was dedicated to monitoring the screen, recording transactions and completions.
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