v3 Chapter 862： Bank of Bahrain's choice

Latest website: All eyes are on themselves, which puts Curtis Budd under pressure.

Although it was the Rothschild family who made him short LME copper futures and LME aluminum futures, this cannot be said unless he wants to go to prison.

Curtis Budd was very anxious, and his forehead seemed to become wet.

Barrett Bahrain frowned and said in a deep voice: "Manager Curtis Bard, I read your investment application report, but it is not enough to explain that you have invested more than 700 million US dollars in short time. , Your behavior was too radical, which led to this dilemma. I need an explanation."

The current deficit is only 25.55 million U.S. dollars, which is not too much for the Bank of Bahrain. It seems that it has not reached the alarm of Barrett Bahrain, and high-level meetings are held in such a big battle.

But if you think about it, you can understand Barrett Ballin's concerns.

Before Baring Bank was short, it only gradually stepped into a disadvantage, so there is still room for dealing with it.

However, the news that broke out this afternoon meant that the bulls were about to take off, and the room for maneuver of the shorts led by Baring Bank was instantly reduced by 80 to 90%.

Now it is only a loss of 25.55 million US dollars.

But what if the prices of LME copper futures and LME aluminum futures double?

So how much money the Bank of Bahrain has invested, so much money will be lost!

Now, 749 million U.S. dollars has been invested, and this figure is huge!

If all losses occur, it will be enough to bring the Bank of Barings into the abyss!

Although the London Metal Exchange has a margin system, if the margin is lost under normal circumstances, the exchange will forcibly close the position, and the loss does not seem to be too large.

But nothing is absolute, there are always extreme situations, such as the inability to close a position.

On the premise that the bulls are unanimously optimistic about the market, and holding the futures contracts without letting go, the Bank of Bahrain cannot buy enough futures contracts for liquidation.

In this way, you can only watch the futures price rise all the way until the contract expires.

In theory, the price of futures can rise to infinity, so the loss of shorting is also unlimited.

Just like when the Hunter family did long silver futures, the initial silver futures price was around US$2 per ounce, but in 1980, the highest price reached US$50 per ounce, a 25-fold increase.

Assuming that the short position that was short at the beginning has not been able to clear the position, and when it reaches the highest position, it is delivered by the long position. The silver futures sold for 100 million US dollars will be bought back 2.5 billion US dollars, and the loss is as high as 2.4 billion US dollars.

Of course, in a few months, the loss was less than 20 times, but if the bulls are too strong, it is not impossible to double or double.

With the huge contract volume of the Bank of Barings, it is too difficult to liquidate all the positions smoothly under the condition of bullish momentum. It is considered good to be able to escape with a loss of one or two billion dollars.

It was because of this premonition that Barrett Bahrain could not sit still at home and hurriedly called all the high-level meetings.

Curtis Bard sweated heavily on his forehead, and quickly explained to himself: "Chairman, I am sorry that I miscalculated the power of the bulls. I thought I could use our powerful capital to end the battle quickly, but I didn’t expect the bulls’ capital. Strong, it is too late by the time I react. I am planning to attract more capital to join the short camp."

"But before it was officially implemented, what happened at noon today. The reason why the Howard family's Rock Fund has done more is unclear."

"But as far as I know, Sumitomo Corporation has suffered serious losses in the LME nickel futures, LME zinc futures, and LME lead futures markets these days. All funds have been drawn back. They must want to recover their losses in other markets, so they will increase Strongly long LME copper futures and LME aluminum futures."

"The actions of the G·S·Huabao Company showed no signs and had nothing to do with our investment, but it caused us sudden trouble."

"Chairman, although there are many reasons for this situation, I also have aggressive investments. I am sorry to cause trouble to the company."

After speaking, Curtis Budd lowered his head with a shame, as if he had no face to see Barrett Bahrain.

Curtis Bard urgently learned George Monroe's trick, so that Barrett Barin had nowhere to spread his anger and almost suffered internal injuries.

But if Curtis Bard wants to get rid of the responsibility so simple, he is undoubtedly thinking too simple.

Seeing that the chairman was very annoyed, President Peter Niels glared at Curtis Budd and screamed: "Curtis Budd, your responsibility is the greatest. It has already happened. What you have to do is do your best. Minimize future losses!"

"What are you going to do?"

Although it was a scolding, Peter Niels also gave Curtis Budd a chance, depending on whether the latter could seize it, and let the chairman Barrett Bahrain calm down.

Curtis Bard immediately seized the opportunity and said sincerely: "Chairman, President, I think if we want to reduce losses, we can take two steps. The first step is to create a negative public opinion atmosphere and win at the same time. Companies that may be short-selling such as G·S·Huabao join our short side, and take the opportunity to clear the position and exit in the second step."

Curtis Budd put it more bluntly, just trying to trick several institutions into the water, and then took the opportunity to flee.

This method of stopping loss is very insidious, and is typically self-interested.

But the capital market is cruel and ruthless, and only interests are paramount. If it can really reduce its own losses, Barrett Bahrain will definitely do it.

The first Barit Bahrain contemplated his eyebrows for a moment, and felt that the operation was too difficult. After all, no one is stupid, especially shrewd Jews. It is difficult to trick them into taking the order!

But because his attention was diverted, Barrett Ballin's anger a little bit, and he looked at other people and asked, "What do you think?"

"Chairman, I think it is too difficult to find an institution to take over, so I suggest to take other measures to hedge against losses. For example, if you buy more spot, the price of futures will rise, and the spot price will rise accordingly. Use spot profits to hedge your futures losses. ."

An executive suggested.

No one stipulates that a short position is always a short position. Long and short can be converted into each other. The key lies in the profitable side.

"Chairman, I suggest..."

...

Able to become a senior executive of the Bank of Barings, each has a few brushes, and they have put forward their own opinions, those who have suggestions, and those who don't, also contribute their own analysis and inspire others.

This is the purpose of Barrett Bahrain in convening a meeting of all people, to use the wisdom of the crowd to solve problems.

At the end of the discussion, everyone's opinions gradually reached consensus, which can be summarized into three points.

One is that short-selling has failed and should immediately stop continuing to invest in short-selling, so as not to get deeper and deeper, we should find a way to clear the position.

The second is not to give up the trustee to enter the water, find someone to take the order to reduce their own losses.

The third is to open a vest separately, instead of doing reverse long spot in the name of the Bank of Barings, send people to major mining companies to buy spot contracts for later trading with metal buyers to hedge short-selling losses.

During the meeting, their respective responsibilities were also assigned. Among them, Curtis Bard had the opportunity to make up for his work, that is, to find a way to lighten up the exit from the angle as hidden as possible.

After all, Curtis Bard is the senior manager of the metals trading department of the futures department. He knows the most about LME copper futures and LME aluminum futures. At this critical moment, letting him continue to be responsible is the safest way.

After the meeting, everyone performed their duties and acted immediately.

Barrett Bahrain, who was not at ease, left the meeting room and went straight to the operation room to check the prices of LME copper futures and LME aluminum futures.

After seeing the prices of the two, Barrett Bahrain's face instantly went black.

The meeting lasted just an hour, but the price of LME copper futures rose to $1,387/ton, and the price of LME aluminum futures rose to $2824/ton.

The combination of the two made the floating loss of the Bank of Barings rise again by 105.3 million US dollars, and the floating loss reached 36 million US dollars!

It is enough to see the impact of two events that happened one after another at noon on the market.

Forcibly suppressing the anger in his heart, Barrett Bahrain gave Curtis Budd a fierce look, and Barrett Bahrain left with a cold face when the latter repeatedly promised to do his best to make up for it.

The next day is Friday, and the prices of LME copper futures and LME aluminum futures continue to rise, putting great pressure on the senior management of the Bank of Barings.

Fortunately, after the market is closed on Friday afternoon, the market will be closed for two days on the weekend, allowing the Bank of Bahrain to have two days of activities.

For example, go to European countries to purchase copper and aluminum spot contracts.

The Bright Fund and the Howard family are also acquiring spot stocks. It is absolutely impossible for the two parties not to meet or not to leak the news.

The only difference is that the mood of the person receiving the news is completely different.