On October 1, the futures market was calm and nothing happened on the surface. The Chicago trading market opened % higher due to the influence of the mainland's daily limit, and there were no accidents throughout the day.

By the closing, it continued to rise by 1.7%. Countless investors who dreamed of getting rich overnight bought it without thinking. Fortunately, a large amount of funds entered the market to short sell, and the share price was very strong.

Otherwise, the cotton price would most likely be suspended again due to the daily limit.

The new entrants are of course the Qingyun Group and the Dongda National Team. The two companies have placed orders with major global investment banks, large banks, and securities companies to short cotton futures and short options.

Individuals also commissioned commercial banks to hold short contracts with a five-fold leverage.

The total capital invested on that day was approximately US$20 billion, leveraging tens of billions of funds to enter the market to take over.

The four major grain traders noticed something was wrong and sent people to investigate to find out the details of the main source of funds. However, even the commercial banks that held the positions on behalf of the grain traders were unable to figure out who the client was for a while.

There were too many people coming and they were too diverse. There were Western faces, East Asians, and even African guys. On the surface, these people had no connection with each other.

Checking the source of funds and transfer records makes me even more confused!
It can't be found at all.

There is no problem with that. This is the biggest problem in itself. Apart from the state apparatus, the four major grain traders can’t think of anyone else who can do it quietly and circumvent the supervision of the international financial remittance system.

Todai, and only it, has enough motivation to do all this.

But if a person can be stupid, how can a country be stupid?

Having lost almost all its inventory, with the initiative completely in the hands of the four major grain traders, why would it short sell against the trend?

Are you spending money to buy peace, or do you have other intentions?
But no matter how long they waited, no representatives from the University of Tokyo came to negotiate, which made everyone confused.

The four major grain traders cannot see clearly, but that does not prevent them from mobilizing sufficient funds to guard against the situation and swallow up the short-term benefits in front of them.

If the confrontation in the international capital market on the 9th was just an appetizer, then the real decisive battle on the 10th will begin!

Kill like crazy, completely blood-thirsty!

Dongda changed its tone, and the agricultural department personally came out to speak out and publicly stated that Dongda has sufficient stocks of cotton and various key categories of agricultural raw materials.

Among them, cotton alone can be used by textile enterprises across the country for half a year. I hope the market will not believe the rumors. Dongda Yamen has the ability and confidence to resolutely defend the stability of the agricultural products market.

Immediately afterwards, all the funds that had been arranged in place were launched together to engage in frantic short selling.

The four major grain traders are not pushovers either. They have joined forces with top investment banks and led the main international hot money to resolutely go long.

When the battle was at its most brutal, tens of millions or even hundreds of millions of dollars were involved in the game almost every minute. International cotton prices began to fluctuate violently, rising by $10 one second and then the next.

Oh no, the price was dropped by 8 dollars in an instant!

Then, the main bulls pulled it back with huge amounts of funds. After all, they are the majority in this battle, especially the international hot money that follow the trend, who have almost unlimited funds in their hands.

It's just a pity for those small retail investors who have insufficient capital and are too greedy. They use maximum leverage and have full positions. Even the slightest fluctuation will make their hearts beat fast. They can't handle the intense stimulation at all.

A slightly more drastic fluctuation will cause countless small retail investors to be liquidated in minutes. The leeks should have the awareness of leeks, even if the price is raised again after the liquidation.

Well, that has nothing to do with them.

"It's simply a dream to think that we can fight the whole world with our own strength!"

The four major grain traders, relying on leading the market trend, occasionally take advantage of the situation to short sell and reap profits, but overall they still rely on their superior funds to reap the shorts.

In just one morning (early morning at Dongda University), the book profit reached more than ten billion US dollars. Seeing that the opponent seemed to be losing momentum, they took advantage of the situation and launched a more fierce attack.

Long orders were placed as if they were free, and people were pouring in like crazy. The advantage was expanding little by little. Before the morning closing, the international cotton price had soared by more than 1%.

During the 45-minute break during the trading session, they even celebrated wildly in the trading hall, and the whole thing was short of popping champagne and arranging a group of hot girls to come in and cheer.

There is nothing more exciting than making quick money. If there is, it is making tens of billions of dollars in a day and becoming rich overnight.

Looking at the market situation, this is really possible. If the market opens in the afternoon, the short sellers will not be able to hold on and will be pulled out of the daily limit again and forced to suspend trading. Based on the current leverage scale, profits of tens of billions are just around the corner.

It was too early to open champagne at halftime. When the break was over and the afternoon session started, the trend of the futures market suddenly changed.

Before the four major grain traders could even react, a huge amount of funds suddenly dumped the market. They came with such force that they not only shorted cotton, but also smashed the exchanges and all agricultural products one by one.

Before the four major grain traders could react, Europe made a high-profile public announcement that several top financial institutions had joined forces to short the market.

The two powerful players, the University of Tokyo and the United States, are fighting so fiercely, and the economic interests involved are so huge that all capital with a little bit of strength is paying close attention and is ready to get in at any time to take advantage of the situation.

As the biggest victim of the European debt crisis, the European financial community has long been holding back its anger, but has been unable to find a good opportunity and has been enduring it.

Originally, they were also involved in agricultural products, bulk commodities, and gold, silver and precious metal futures trading, but they always followed the trends of the main players.

Until~
"You didn't expect it, we are the ones causing trouble again."

Goldman Sachs is a financial giant that is notorious for its repeated jumps from one company to the next, swallowing up the previous one and then the next one!

Morgan and Bank of America should also be included. When these people get ruthless, they will not even let go of the capital belonging to the same camp.

In other words, Squid Capital is just a general term. We all have common interests, but when it comes to a specific industry or a specific thing, I'm sorry.

Even founding partners of the same company may become enemies due to conflicts of interest, and even fathers and sons, or brothers may fight over millions of dollars.

What’s more, huge interests of tens of billions of dollars are involved now.

Previously, the world's top financial oligarchs such as Goldman Sachs, Morgan, and Bank of America were long.

Now, after being passed the inside information by Dongda through special channels, they invited their core personnel to conduct on-site inspection.

Everyone suddenly changed their attitude and started to reap the profits from the four major grain traders and international hot money. Who can resist money?
In order to better lock in long positions, several financial institutions even blocked the news in the shortest possible time and reached a temporary alliance.

The king bomb must be thrown together after the domestic futures market opens tomorrow!

This is because these guys also have massive positions in the Zhengzhou Stock Exchange and the Shanghai Stock Exchange, and they are still bullish. Any rash move will only result in unnecessary losses.

They wanted to delay for another day, but the pressure from Dongda was too great. If they did not follow, the news would be made public, allowing international hot money and Dongda Capital to join forces to reap the four major grain traders and financial institutions.

When have top capitals such as Goldman Sachs, Morgan Stanley and Bank of America ever been threatened in this way?

Are you kidding? Squid Capital and traditional capital do not accept threats!!!

Since we have to fight!

Then let the war begin!

Well, they immediately transferred the funds to European financial institutions and started short selling.

Thanks to convenient telecommunications, thanks to the Internet, and thanks to economic globalization.

In the past, it would take half a day for a person to cross the Atlantic Ocean, no matter how fast he traveled. But with the help of mobile phones and computers, it only takes one second to transmit information.

In just one morning, the top capitals of the United States and Europe reached a top-secret agreement, with the U.S. providing the money and European financial institutions selling short, while the U.S. side arranged to gradually liquidate its positions and exit.

Large-scale short selling is unrealistic, and it is easy to lose the more than one billion US dollars invested in the Dongda market (including private options and bets). Who would complain about having too much money?
Therefore, today's actions must be maintained within a controllable range. The best way is to keep the market rising and continue to fool the leeks to take over. However, we must get as many chips as possible to facilitate subsequent harvesting.

When they think of the hundreds of billions of dollars of international hot money rushing into the agricultural products market, most of them continue to buy and follow.

The thought of the four major grain traders, with a combined market value of over 100 billion yuan and tens of billions of dollars in cash, who are deeply involved in the agricultural futures market, poses a risk of being trapped.

These financial institutions that turned against us at the last minute and opened their bloody mouths wide to eat big chunks of meat were so excited that they were trembling all over!!!
Money, endless Ma Ning!
(Shōnan nasal tone, add n when scolding you.)
The English words clearly tell everyone that only if you have money can your mother live a peaceful life!

Only when mom lives a comfortable life can the whole family live a good life.

Who the hell would go against money?
Therefore, with powerful enemies outside and core allies backstabbing inside, the four major grain traders led the international hot money to inevitably step into the abyss.
By the close of the day, the trading volume of the Chicago Agricultural Products Exchange set a historical record, with a total of hundreds of billions of leveraged funds engaged in a brutal close combat.

The short sellers are aggressive and well-funded, and show no signs of surrendering.

In addition, the long options originally held by the Qingyun Group were continuously closed, which forcibly tied up the huge amount of funds of the four major grain traders and international hot money, forcing them to stay in the market and unable to leave.

Usually after the day's closing, both the long and short sides will hold a maximum of 200,000 to 300,000 remaining positions to hold as a reserve, making it convenient for them to support or crash the market during the main trading hours the next day.

But today, this number is as high as more than 200 million lots. The long and short parties hold a total of nearly million tons of cotton. Even the exchange was alarmed and happily collected a large amount of overnight holding fees.

Both the long and short sides understand that this evening and tomorrow will be a more intense game. Both sides are frantically mobilizing funds to prepare for the decisive battle on the 11th!
……

The market outside is booming, and during the two-day rest day in China, various forces are also busy.

A portion of the floating capital and comprador capital in Jiangsu and Zhejiang remitted funds overseas through special channels. Together with the original funds, they entered the Chicago market and cooperated with the four major grain traders to reap the mainland textile industry.

Going long is a major trend that forms spontaneously in the market.

There is no need for anyone to take the initiative to collude. In the face of huge economic benefits, anyone who controls capital will involuntarily join in the wave of dividing up the wealth of Qingyun and the textile industry.

Among the comprador capital, the Taishan faction is the main one, which is frantically mobilizing the resources in its hands, jumping around everywhere and complaining about the Qingyun Group's illegal operations.

They also attempted to influence the China Securities Regulatory Commission and the China Banking Regulatory Commission. The complaints mainly focused on Qingyun Group's illegal operations, attempts to avoid the physical delivery that should have been carried out, and demands for early fulfillment of the contract.

They nailed down the exposed 500,000 tons of cotton stockpile, and either Qingyun would use it to pay for the compensation, or the State Reserve Bureau would take it back to rescue the market, forcing Qingyun to spend a huge amount of money to buy it openly in the market.

This will indirectly raise the spot price of cotton and continue to generate profits for them.

As for the policy loan funds, their illegal entry into the extremely risky securities trading market was completely ignored by all related parties.

Are you kidding? All they care about is making money.

As for the money in Qingyun's hands, whether it was borrowed, swindled, or robbed, as long as it can legally enter the trading market, it has nothing to do with them.

Don't even think about holding them accountable afterwards, because it was the higher-ups who allowed them to invest in the financial market in the first place...

"I feel something is wrong. Dongda Capital crossed the ocean today and held nearly 200 million lots in the Chicago market. As of the close of the main trading time, there were still more than 110 million lots of unclosed positions.

The Central Bank and the National Development and Reform Commission have publicly called on the market to resolutely defend the stability of the price system for agricultural products and raw materials!

You can say whatever you want, but the key is that the involvement of such a large amount of funds is definitely not something that can be accomplished overnight. It is more like a premeditated large-scale execution of a certain resolution.

The question is, where is their confidence? "

Even Jack Ma, who rarely participates in financial speculation, has to admit that the situation developed too quickly and was somewhat out of control. He was not familiar with European funds, but at this level.

No one is a fool. Without a reliable source of information, who would be able to hit a winning streak right out of the gate?
What’s more, domestic capital went overseas on a large scale to short sell, engaging in a whole-day-long confrontation with top international institutions, involving hundreds of billions of dollars in a brutal fight with no clear winner.

This determination alone is enough to make domestic capital that insists on going long feel terrified.

Fortunately, Boss Duan had a lot of connections behind him, and he soon got the top-secret information. "No need to guess, this is a bribe...

Through the efforts of the central bank, foreign affairs department and development and reform department in the past ten days, they have only purchased some scattered cotton stocks from Central Asia and Africa, the quantity is less than 20 tons.

Compared with the minimum monthly consumption of 500,000 to 600,000 tons, this is like a drop in the bucket and will do nothing.

(They were all bought out in advance by the Qingyun Group.)
In addition, large-scale production cuts in the main producing areas of major agricultural raw materials are inevitable. In order to ensure future domestic consumption needs, compromises have been made. Today's large-scale overseas exports are just an appearance.

If the price could be brought down successfully and the unfavorable situation could be changed, there would still be room for maneuver. However, the attitude of the four major grain traders is very clear and they will not compromise.

Therefore, they were forced to compromise and were in the process of purchasing the stocks from the four major grain traders at high prices, and the cost was the funds invested in the exchange.

It has to be said that there are still capable people at the top. If you offer a sky-high price to bribe them directly and then spend a large sum of money to smooth over the connections, it will definitely not be accepted. No one dares to bear the responsibility and the infamy.

But if you lose money through the legal market, you can say that you are just paying tuition fees to learn America’s advanced financial management experience.

The four major grain traders are considering selling off part of their inventory to stabilize this side..."

After hearing this, everyone was delighted. After verifying the accuracy of the news through their own channels, everyone was ready to continue to beat the fallen dog tomorrow.
Coincidentally, Yishui's national team and Qingyun Group were having a secret meeting in Shanghai under the pretext of studying how to save the textile industry.

Including the strategic investment department controlled by the State-owned Assets Supervision and Administration Commission, the three major guarantee funds, the proprietary departments of the five major banks, the Shanghai government, the senior officials of the China Securities Regulatory Commission, the China Banking Regulatory Commission, and the senior officials of the Five Military Governor's Offices.

The Development and Reform Commission, the State Reserves Administration, the Ministry of Finance, and the three policy guarantee banks all sent core teams to participate.

The theme of the meeting is: Severely crack down on investment fraud in the new era~
……

“Up, up, up!”

"Make money, you can pick up money just by lying down!"

"3 is not the limit, 3 is the new starting point. The main force said, 6, you have it and I have it, forever~"

"Another daily limit increase. When the hell did futures become the same as stocks?

There are still more than 20 hands holding the daily limit. Damn, in the time it takes to say a word, another 5 hands are holding the daily limit. I just want to ask, who else!!!"

"Major, your mom is back, open the door and let me in, I haven't gotten in the car yet, please take me with you!"

Crazy, the whole market is crazy!

As soon as the market opened on October 10, all the long funds seemed to go crazy and almost bet everything with their eyes closed.

Going long and buying is equivalent to picking up money.

Even a 50% margin cannot stop the many investors who dream of getting rich quickly.

Over a weekend, powerful capital groups, hot money, and retail investors have enough time to raise funds. Can't they only use double leverage?

It's like you're bullying someone because they have no money!
Buy with your eyes closed, just treat it as stock trading. If the price hits the daily limit, those who have previously held positions waiting for a rise will all make a 20% profit under double leverage.

Who would refuse a clear and profitable project?

Even Wang Xiaoyu couldn't help but invest all his cash flow. He was lucky because he had been holding long positions and waiting when his positions were transferred from September to the November delivery period.

When a large-scale battle between bulls and bears broke out on the 8th, he placed orders at the upper limit price and, by luck, all of them were executed.

However, after the market closed, the exchange temporarily required the margin to be increased to 50%, which made him busy borrowing money throughout the weekend and he had to mortgage his house and car.

Because he was short of time and could not get the funds in a short time through formal channels, he got life-saving funds through the introduction of friends in the group. The interest rate was a bit high, but it was worth the future returns.

Not worth mentioning.

But he didn't think about it, would the exchange have nothing else to do and would it keep raising the margin?

You should know that the more people participate, the more commissions and taxes the exchange will earn.

There are even minimum holding and opening position restrictions on weekends. All means are used to prevent ordinary people from participating, because they have weak risk resistance and can easily lose all their money.

But you will suffer the consequences if you do evil!

Many retail investors even cursed the exchanges maliciously, saying that it delayed their fortune-making, and then rushed to borrow money, even if they had to mortgage all their assets, in order to reach the minimum purchase threshold of 10 lots today.

The stock price hit the daily limit at the opening, causing countless small and medium-sized retail investors and hot money to curse loudly. How could they get rich if they couldn’t buy in?

Some gave up at the last minute and bought other agricultural products, while others held on to the end and insisted on chasing cotton, a short-selling product in the market.

It is said that perseverance will definitely pay off.

“Oh my god, it’s a blast! I actually traded 15 lots at the daily limit.

Mom, I want to get rich. I don’t ask for the price to rise to 9, but I just want it to double so I can buy a house! "

Retail investors who trade at the daily limit are not isolated cases.

As if some kind of signal was sounded, for a time, huge transaction orders began to appear in the prices of agricultural raw materials, mainly cotton futures.

The daily limit orders for cotton are also decreasing at a speed visible to the price of meat~
"Finally here. I've been waiting for you for a long time. A large order of tens of thousands of lots. Let the other party see the new service of the exchange."

The long side responded immediately. They believed that they had grasped the general trend, had sufficient funds, and had strong support from top international capital, so they were confident...

At the same time, Li Zehua, who was far away in the Magic City, also issued the final general attack signal: "Act according to the established goals, first consume two million of them, and collect 10 million tons..."

With his order, a scene that shocked the global financial market took place.

Countless 748 sell orders were posted simultaneously on the Chicago Board of Trade, the Stock Exchange, the Shanghai Stock Exchange, and all agricultural futures markets around the world.

(End of this chapter)