In the Shanghai exchange rate market, the market has only opened for five minutes today, and dozens of huge short selling orders were placed without warning.

What is the concept of short selling or short selling?

For example, the current exchange rate of the Huaxia currency is 7, and you predict that it will fall to 6.9 soon. Then you exchange 100 US dollars for 700 Huaxia currency. During this period of time, you can get the interest on the 700 Huaxia currency.

Then the exchange rate successfully drops to 6.9 as you expected, and you can use 690 Chinese dollars to buy back 100 US dollars. These 10 Chinese dollars plus additional interest are your net income.

As for going long, it is the opposite operation.

But this short selling operation is not something that can be done casually. If the exchange rate of Huaxia Coin starts to rise during the period of your short selling, then you will lose money. The more the Huaxia Coin rises, the bigger your losses will be.

The more serious it is.

This requires you to have strong enough operations and strong enough economic strength to suppress the exchange rate, then this money is almost equivalent to making money in vain.

But if your funds are not strong enough and your traders do not have such awesome operations, then whether you will lose money or make money depends on the market and other traders. Only "prophet" can make such unknown profits.

money.

A few years ago, China's market prohibited this kind of short selling operation. However, because transactions are becoming more and more flexible now, this kind of operation was opened a few years ago. Some institutions will use this method to make some money.

But their power is not strong enough, and the country still has the final say whether it rises or falls.

So even if they really make money, it's just a blind cat that meets a dead mouse, and they just comply with the monetary policy of Huaxia Coin.

"Someone placed short selling orders as soon as the market opened?" A trader skillfully checked those orders, but the terrifying amount of these orders made his hands shake violently.

There were a total of 24 short sales, each of which exceeded US$1 billion!

24 deals means $24 billion!

This market conducts almost all of the country's foreign exchange transactions, with an average annual total transaction volume of around 30 trillion U.S. dollars, and an average daily transaction volume of around 100 billion U.S. dollars.

But the total transaction volume of 100 billion US dollars is the mutual exchange between various currencies. What is the total transaction volume? You sell to me and I sell to you. It is not a one-way transaction!

These 24 short-selling orders, totaling US$240 billion, have exceeded the daily foreign exchange reserve amount of their exchange. After all, under normal circumstances, who would suddenly place a single order of US$240 billion? They can reserve tens of billions of US dollars.

It is enough to meet daily business

"Everyone, come here quickly, there's something wrong with these orders!"

Such a huge short selling order means that the other party has a lot of dollars in hand, otherwise it would be impossible to place such a large order casually. In the trading market, the upper limit of leverage is 10 times, even if the other party uses it

If you operate with 10 times leverage, then the other party will have at least tens of billions of dollars in hand!

Even a country cannot easily draw out tens of billions of dollars in liquidity!

"It may be that large international hot money is causing trouble!" Some experienced traders immediately developed a sensitive sense of smell.

"To be able to use such a large amount of funds to attack our foreign exchange market is definitely not ordinary international hot money!"

"Liu Xingyao, please report it. We may have to apply to use the bank's foreign exchange reserves at any time!"

"Team leader, is it necessary to be so nervous?" someone questioned.

"I suspect that these funds will definitely not be all the funds in the hands of the other party!" said Wang Chendong, an experienced team leader. He is close to 50 years old this year and has been in this industry for 25 years. He has experienced many economic crises.

He is very keen, and most importantly, he has a lot of experience!

"Under normal circumstances, if the other party only has so much funds on hand, they will definitely choose to carry out this operation when the market is about to close, because that is when everyone's attention is often the loosest, whether it is foreign exchange or stocks, this time

When prices are suppressed, it is difficult to make timely repairs on the same day.”

"But they directly showed such a large amount of funds when they came up. This means that they are telling us that this is just an appetizer, and they have even bigger funds behind them!" Wang Chendong showed an excited smile on his face. He was already

I haven't encountered such an opponent for a long time.

The short selling order of US$240 billion directly destroyed today’s Huaxia currency exchange rate by 500 basis points!

At 9:30, many foreign exchange investors were awakened directly from their sleep.

Many rich people make money through the exchange rate market, and generally there are dedicated teams to help them manage their wealth. They only need to contribute money, and all the money-making can be left to those professional institutions.

But just today, they had just logged into their accounts, and the shocking numbers made them panic.

"What's going on? Why did it drop 500 basis points at the beginning today? How come millions of dollars in labor and capital just evaporated?"

"How on earth does your organization work? I handed over my funds to you for operation. I only made 2 million US dollars a year with tens of millions of dollars of funds, and now I lost all my money in one morning?"

"Mr. Zhang, don't worry, I'll call and ask immediately. It may be just an adjustment for today's opening, and maybe it will stabilize in a while!"

.......

The account owners were anxious, and the exchange suddenly became in full swing. One after another, calls came in to ask what was going on. Some people even asked to cancel orders and stop losses, and the scene became a mess.

The initial 500 basis points drop in the exchange rate is just the beginning and a signal.

For example, if the market value of a company's stock drops, it largely means that the company's operations have problems and it is losing money. Anyway, it is not optimistic about its development. The foreign exchange market is a similar situation.

The way to deal with short selling is to go long. To carry out such an operation, you also need money!

Since the opening of the market, the current exchange rate has dropped to more than 800 basis points! The exchange rate market is not the stock market. There is a so-called daily limit and a lower limit. As long as the momentum does not stop, it can keep falling!

In the past, the exchange rates of some countries fell by 40% in one day at most, which shows how serious the struggle in the foreign exchange market is.

"Immediately apply for foreign exchange funds from above and start going long. We can't let them drive down the exchange rate!"

"yes!"

Dozens of traders in the group immediately started working. Dozens of long orders were also placed, and hundreds of billions of dollars of funds flowed directly into the foreign exchange market.

Sure enough, the downward trend of the exchange rate quickly stopped, rebounded to a decline of about 600 basis points, and began to rebound slightly.

Everyone breathed a sigh of relief, but they knew very well that the opponent's attack had just begun, and what followed was a real war without gunpowder!

...

"Team leader, the Chinese have started to go long to counter our short selling list. It's 20 billion US dollars, and the exchange rate has begun to rise."

"They are beginning to take the bait!" the person in charge of the European branch smiled, "The order of 20 billion US dollars is not much, but it is not bad to have a bite as an appetizer. Let's eat your billions first, and we will continue to play.

Stay!"

"Their authority can only use tens of billions of dollars at most. If they want to continue to increase, they will have to use the foreign exchange reserves of major banks. This will not be available in a few minutes. It is enough for us to do a lot of things!"

He immediately ordered, "Keep smashing!"

...

"Team leader! They smashed more than 20 short selling orders again!"

“Keep going long, if we don’t have enough people, we’ll transfer them from other groups!”

"Team leader, this...the total amount of these short selling orders has exceeded 500 billion US dollars. Our exchange does not have enough US dollars in reserve!"
Chapter completed!