Super Spender - Chapter 342

Chapter 342: Chapter 336: Unreasonable – Part 1

Translator: 549690339

The so-called cancellation of an order is not as simple as it sounds. Once you open a short position, the order won’t be established automatically. Someone else has to open a long position and buy your short order. The order becomes effective only when both parties’ contracts are settled. If no one takes it, your short order will not be established, and it won’t be considered in force. Naturally, if you wish to cancel it, you may, although some transaction fees would still be payable.

“Our short order has been taken! The buyer was quick! 500,000 lots! 600,000 lots!” Another trader promptly yelled out.

Clarence Johnson immediately looked at Matthew Chan. Every time a number was announced, it meant that more of their short orders were taken by those going long, which means that a contract was established. Previously, the oil futures market was generally bullish, implying that if oil futures kept rising due to this, the fluctuation would probably exceed 10%, their margin won’t suffice, and the bank must increase the new guarantee money.

“Bank President Chan? Your thoughts?” Clarence Johnson felt nervous. This is a whole 10 billion Federalcoin! Though it’s a drop in the bucket for the bank, if they were to lose it all, his tenure as the bank president would basically be over.

“Let’s wait and see! I believe he won’t play us. This should be him doing us a favor.” Matthew Chan contemplated before firmly speaking.

“Alright, I hope you’re right.” Clarence Johnson mulled it over and then decisively exclaimed loudly: “Don’t worry, continue until all 2 million short orders are established.”

Finn Lewis’ actions influenced the profits of many parties; if they did not want to lose money, they would have to push up the price of oil. As there are many ordinary people also buying oil futures, 2 million lots is inconsequential for the global futures market. Soon, 2 million short orders were all established.

However, when these 2 million short orders were successfully opened, the price of oil had already returned to 103 Federalcoin per barrel. The bank opened these short positions at the price of 100 Federalcoin, meaning the bank had already lost 3 Federalcoin per barrel of crude oil. Don’t underestimate this 3 Federalcoin. It adds up as the bank has 2 million lots, meaning 20 billion barrels, so the bank had already lost 60 billion Federalcoin!

This is the risk of the futures market! This risk is much larger than that of the stock market. Although the bank has only spent 100 billion Federalcoin, if crude oil does not eventually fall, when the time comes for delivery, they will solidly incur a loss of 60 billion Federalcoin.

“Player 1 has made a move! Another 1 million short orders and selectively took all the long orders of a specific account. Now, the price of oil has returned to 100 Federalcoin per barrel.” As another new piece of news came, Clarence Johnson and Matthew Chan heaved a sigh of relief.

Indeed, Finn Lewis has just done the bank a favor by letting their orders go through first and then crashing the market himself. All the orders Finn Lewis took were from the SG Investment Foundation. Now it was a contest between the bulls and the bears, and there are also people who are going long while establishing short orders at the same time.

However, they can’t move as fast as Finn Lewis. Olivia Thatcher quickly smashed out a few million lot short orders in an instant. Although the bulls are also accepting orders, they probably cannot cover all of Olivia Thatcher’s short orders, because many ordinary people have already begun to exit swiftly. After all, retail traders flow like a tide, and the price of oil rapidly fell below 100 Federalcoin, quickly dropping to around 95 Federalcoin per barrel.

95 Federalcoin means that the bank’s orders have doubled in profit, gaining an entire 100 billion Federalcoin. All this happened within minutes? If the bank chooses to close their positions now, they would immediately gain 100 billion Federalcoin.

Currently, the interior of the SG Investment Foundation – a private fund in

Belmare Country, populated by many of Belmare’s tycoons – was in chaos. The Foundation has approximately 600 billion Federalcoin at their disposal, but their orders in the oil futures market haven’t had time to close out, and they are now stuck.

Moreover, their long orders were established at a slightly higher price, around 102 Federalcoin, with approximately 15 billion barrels of crude oil futures in their hands, i.e. 1.5 million lots. Now, they are losing 7 Federalcoin per barrel of oil, totaling 105 billion Federalcoin. Although their leverage is low, the current price has already reached their margin limit.

This means they must immediately replenish their margin. But can they still dare to increase the margin now? “What’s going on? How could such a significant change happen in the futures market?” The person in charge of the SG Investment Foundation was almost roaring. The information they had received earlier stated that the price of oil would at least rise to 115 Federalcoin per barrel or even higher.

This would have made their profits considerable; however, now a massive fund came out of nowhere and kept smashing down terrifying short orders, causing the oil price to plummet accordingly.

“Olivia, figure out a way to spread this message. Anyway, whoever messes with T Company’s stocks, we’ll mess with them. Keep smashing.” Finn Lewis viciously commanded, especially when he found out that the SG Investment Foundation was a fund from Belmare Country.

Not only the SG Investment Foundation was puzzled but also all the other funds in the futures market. Of course, they also knew about the gold futures market, even about what happened at the LD Exchange in the forex and stock index markets. However, they didn’t understand why the other party entered the oil futures market.

But this news quickly spread in this circle. Especially when the Red Flower

Bank and other financial groups like the Rhine Kingdom Bank were spreading the news, the news spread even faster. When they got the news, everyone was stunned.

Holy shit! Is there a need for such a powerful reason? Just because someone

bought T Company’s stocks? What they found even more speechless was… all this started just because they wanted to buy a game company valued merely at 150 billion Federalcoin… Crap, do you have to play this big? Countless bankers worldwide cursed Finn Lewis!

But after cursing, they were helpless. The capital market is a big-fish-eats-small-fish market. If your funds are more formidable than Finn Lewis, he won’t be able to short the market, and instead, he will directly give you money. However, if you don’t have as much money as him, well, sorry then. Either evacuate quickly and stop the loss, or wait to lose everything you’ve invested?

After cursing Finn Lewis, they cursed the people at the SG Investment Foundation, including eight generations of their ancestors. Damn it, there are so many people you could mess with, so why did you have to mess with him? Didn’t you see the decline in T Company stock, so many people didn’t buy? Now, you buy? Well, isn’t this great now? You are having the time of your life, right! You fucking found your own death, which is fine, but now you’ve implicated a bunch of people! Keep in mind; the SG Investment Foundation wasn’t the only one playing the bullish side in the oil futures market..