v3 Chapter 869： Huge floating profit (2/2)
The prices of these two futures have more than doubled before Xia Yu went long, and the market has become extremely crazy.
The futures market always has a leverage of ten times and several tens of times. If the institutions that successfully entered the market two weeks ago spent 20 million US dollars as margin to enter the market, the floating profit now reaches at least 90 million US dollars, which can be said to be four times. More profit!
There are not many financial institutions with an annual profit of more than $100 million, even in New York.
Think about Phillips Brothers, which had a market value of more than US$4 billion, with an annual net profit of less than US$300 million.
Therefore, in the face of such crazy profits, not many organizations can remain calm.
This is a carnival of wolves!
It's just that the shorts headed by Philip Brothers are going crazy. Under the skyrocketing futures prices, they have to constantly replenish the margin, and at the same time join the ranks of scramble, want to force liquidation.
Before the short positions were selling contracts, now if you want to close your position, you need to buy back the equivalent futures contract.
Although it is a forced liquidation, in the face of the already crazy market, every sell order is like a piece of delicious meat, attracting countless wolves to **** it, and it is difficult for Philip Brothers to close the position to grab the contract.
Philip Brothers has sold too many contracts before, and now it is difficult to close the position.
In view of this situation, Philip Brothers has to adopt other methods, such as acquiring spot contracts, and then looking for institutions that want to convert the spot contracts into futures contracts for liquidation.
This approach has further promoted the soaring of spot prices.
Although major mining companies continue to produce metallic copper and metallic aluminum, they are still in short supply in the face of broad market demand.
When the market is closed on Monday morning.
Xia Yu smiled when he saw that the stock price of Philip Brothers was fixed at $8.25 per share and the market value was $1.2375 billion.
Although Philip Brothers has been covering the lid to prevent the leakage of real data, there are too many elites on Wall Street, and the loss of Philip Brothers has been estimated.
A conservative loss of one billion dollars!
This is the estimate of Philip Brothers by many organizations, and the result of this estimate has been unanimously approved by the majority of organizations.
With such a huge loss, the shares of Philip Brothers have become junk stocks. Now the market is full of sell orders, but no institution dares to buy.
Even if it fell from the peak of 4.173 billion US dollars to the current 1.237.5 billion US dollars, the market value will soon exceed 3 billion US dollars, and the downward trend still cannot be contained.
Calculating carefully, Jiuding Securities shorted Philip Brothers, and the floating profit reached 630 million US dollars!
And this is not the end. As long as the stock price of Philip Brothers drops lower, Jiuding Securities will make more profits from short selling.
It's just that ~ Xia Yu is not too greedy, knows how to stop.
”Toby, when the market value of Philip Brothers has fallen below one billion U.S. dollars, start doing it. Just buy enough equity to repay the gambling institutions. There is no hurry to buy the bottom.”
Withdrawing his sight from the fixed price, Xia Yu ordered Toby Morton beside him.
Toby Morton was taken aback, looking at Xia Yu's deep gaze, thinking hard, nodded in response: ”Yes!”
”I'm leaving now, and you are almost off work.”
After all, Xia Yu turned and left.
Watching the departure of the boss Xia Yu, Toby Morton contemplated the boss's true thoughts.
”Didn't the boss want to buy Philip Brothers, has he changed his mind again?”
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