Su Yi heard Frederick's words, and replied with a smile:
"In my strategic plan, this is not the perfect take-profit point. I believe that in trading, the placement of take-profit and stop-loss has no direct relationship with how much floating profit or loss one holds. More importantly... it's related to market trend changes and the formulation of trading strategies."
"Agreed." Frederick nodded slightly and said, "Mr. Su still has a profound understanding of trading."
"Mr. Frederick, aren't you also planning to gradually take profits at this position?" Su Yi paused and asked in return.
Frederick chuckled and replied,
"Let's wait a bit longer, just as Mr. Su said... the expected referendum results haven't been finalized yet. Many speculative and long-position investment funds in the market are still holding onto a glimmer of hope that the referendum results might reverse, hoping that after the announcement of voting results from numerous core regions, the number of people supporting remaining in the EU can once again exceed those supporting leaving.
Since the potential downward pressure has not been fully released yet. Then we can absolutely wait a bit longer, and gradually reduce positions to take profit after this final downward momentum is released.
At this point, a one-sided bearish trend has basically formed in the market. Funds continuously speculating on short positions are increasing, and long funds covering their stop-losses are also growing.
Under this situation, even if we hold massive short positions. With a completely one-sided bearish trend, it's very easy to quickly cover positions, take profit, and exit the market. So, naturally, there's no need to be overly anxious."
"Mr. Frederick has excellent composure."
Su Yi listened to his analysis and couldn't help but praise,
"As expected of a general's demeanor, the 'Evolution No. 1' main hedge fund product, in Mr. Frederick's hands, will surely achieve new successes in the future and become a globally renowned hedge fund product."
Frederick laughed heartily and replied,
"Thank you, Mr. Su, for the compliment."
Just as the two were speaking...
The GBP exchange rate had further broken through the 1.3800 mark, sliding to around 1.3780.
At the same time, the voting results for the core voting district that global investors and all people worldwide concerned about the 'Brexit' event were most interested in, and which had the biggest impact on this round of referendum results, namely the Greater London area of the UK, were finally announced at this moment.
According to the announced voting results for the Greater London area.
The number of people supporting remaining in the EU accounted for 52%, while those supporting leaving accounted for 48%.
Although overall, the number of people supporting remaining in the EU was in the majority in the voting results of this important region, this result was still lower than expected by major institutions.
After all, before this result was announced...
Major mainstream institutions worldwide had their final voting result expectations for London, this core voting region.
They believed that in this voting district, the number of people supporting remaining in the EU could reach over 60%.
But now... let alone over 60% support for remaining, there isn't even 55% support for remaining.
Moreover, at the same time the voting results for the core Greater London area were announced.
The voting results for the two major core voting districts of Leeds and Manchester were also announced in a timely manner.
And the voting results from these two major core regions, in terms of support for remaining in the EU, were even worse than those from the Greater London area.
Furthermore, Manchester's support for remaining in the EU was even below 50%.
This meant that after the voting data from London, Leeds, Manchester... several of the most populous core regions were announced, the gap between the number of people supporting remaining in the EU and those supporting leaving did not significantly narrow throughout the entire referendum.
After the final vote count in these major core voting districts was completed.
The number of people supporting leaving the EU was still more than 200,000 greater than those supporting remaining.
This meant that the hopes of those in the market who had anticipated that the number of people supporting remaining in the EU would surpass those supporting leaving, after the announcement of voting results from core cities like London, Manchester, and Leeds, were instantly and completely dashed.
"Holy shit, another voting result that's far below expectations."
After seeing the voting results for London, Leeds, Manchester... and other major core regions, many disappointed retail long speculators in the market sighed helplessly.
"The vote count predictions from major institutions earlier were really outrageous."
"How can the support for remaining in the EU only be 52%? Didn't major institutions universally expect over 60% support for remaining? Damn it... we've been fooled by institutions again.
Sigh... if the number of people supporting remaining can't surpass those supporting leaving after the voting data from several core districts are announced, then there's really no hope for the subsequent number of people supporting remaining to overtake those supporting leaving."
"More than half of the voting districts have announced their results, right?"
"There are still 176 [districts] that haven't announced their final referendum results, but... most of the remaining voting districts were previously predicted by institutions to favor leaving!"
"It's over, the long positions in the market are completely finished!"
"Cut losses, Brexit is basically a foregone conclusion."
"No wonder many long institutions in the market, and even the Bank of England, are desperately cutting losses and reducing long positions. Damn it... the news must have leaked in advance!"
"Holy shit, the institutions that universally touted the GBP exchange rate before truly have no conscience."
"Stopped loss and closed positions, lost 70% on the GBP exchange rate this time."
"Sigh, I really should have cut my losses earlier, shouldn't have held onto illusions, otherwise I wouldn't have lost so much."
Just as the confidence of countless speculative retail long investors in the market completely collapsed, and the expected outcome of this national referendum entirely leaned towards leaving the EU.
The GBP exchange rate, after the voting results from core regions like London, Leeds, and Manchester were announced.
Once again experienced a high-volume, sharp nosedive.
In just one minute.
The GBP exchange rate plummeted by nearly 400 points, from around the previously volatile 1.3780 mark, directly falling to around 1.3400.
And with the GBP exchange rate's rapid decline once again.
The more than 400,000 short GBP futures contracts held by the 'Huayi Chengyuan No. 1' main fund product managed by Su Yi.
Its floating profit at this moment had skyrocketed, breaking through the 5.6 billion USD mark.
"Mr. Su, our fund's floating profit has surged to around 5.6 billion USD," fund trading manager Qu Zecai quickly reported, "At the same time, after the voting data from core regions like London, Leeds, Manchester... were announced, the market's entire expectation has completely shifted towards a Brexit outcome."
"Hmm." Su Yi nodded slightly, "The confidence of the long positions in the market has finally completely collapsed."
"The GBP has fallen by over 1500 points this morning compared to its opening high," Qu Zecai continued, "Isn't it time for us to take profits?"
Su Yi watched the concentrated, continuous high-volume, aggressively bearish GBP exchange rate trend, remained silent for a moment, then nodded and said,
"Continue to close positions and cover, gradually taking profits and exiting!"
Along with the one-sided market expectations.
The market's final downward momentum had been triggered.
In other words, the "longs killing longs" situation in the market was reaching its climax at this moment.
Continuing from this point in time...
The market's downward momentum would gradually diminish.
By then, the market situation would transition into a scenario where numerous short positions cover for profit, the negative news is fully priced in, and the exchange rate experiences a weak rebound and recovery after the downward momentum exhausts itself.
Therefore... taking profits now is precisely the right time.
Qu Zecai received Su Yi's instruction, then quickly nodded and conveyed the corresponding gradual position-closing and profit-taking trading orders to the various trading teams in the trading room.
Just as Su Yi issued the gradual profit-taking trading order.
Almost at the same time, the trading departments of major institutions in Hong Kong, including 'Mitsui Kaiyu Investment Company', 'Tianhe Capital', and 'Huifeng Huanyu No. 1 Main Hedge Fund'.
Were all engaged in unified operations of liquidating positions and cutting losses.
Furthermore, each of these three institutions had losses exceeding 1 billion USD in this round of GBP exchange rate trading.
Among them, 'Huifeng Huanyu No. 1 Main Hedge Fund', the institution holding the most long GBP exchange rate contracts, had total position losses exceeding 3 billion USD.
A loss of 3 billion USD...
Made Godfrey, who managed the 'Huifeng Huanyu No. 1' main hedge fund, practically furious to the point of spitting blood.
A loss of this magnitude, even with his qualifications, he would not be able to account for to the group or even to investors.
Of course, it wasn't just these three major institutions performing liquidation and stop-loss operations at this moment.
Almost all long-position institutions worldwide, after the outlook became completely clear, were cutting losses on their remaining long positions.
"It's a good thing we immediately switched from long to short. This trend... it's truly terrifying."
Seeing that the long positions in the market had completely collapsed, and the "longs killing longs" situation was too brutal to watch, Alex, head of the Fund Market Research Department at 'Barclays Investment Bank 'Lion International' Hedge Fund Trading Department' in late-night London, sighed with a lingering fear in his heart.
"Indeed, we avoided a massive loss-making operation," fund manager Claude remarked with a smile.
"The outcome of this national referendum went completely opposite to what major institutions had previously expected," Alex said, "This truly is the biggest 'black swan' event of the 21st century."
"Fortunately, we avoided it," Claude said.
Alex smiled and said,
"Not only did we avoid it, but we also made over a billion dollars in profit from this 'black swan' event. I estimate that after this investment concludes, our group's entire hedge fund investment business department will be handed over to you to manage."
"I didn't think that far ahead," Claude chuckled, "I'm just managing this fund product with a responsible attitude towards investors."
"I heard that in this referendum, our central bank also established long positions amounting to hundreds of thousands of contracts in the secondary market to maintain the GBP exchange rate," Alex said, "With this complete collapse of the GBP exchange rate, I'm afraid the central bank's losses will also be extremely heavy!"
"The central bank should have cut losses and closed positions before market expectations converged," Claude said, "However, in this referendum, millions of concentrated long positions in the market were harvested by short sellers, and major long-position institutions worldwide indeed suffered heavy losses."
"Many of these are our domestic institutions!" Alex said.
Claude nodded slightly and replied,
"That's indeed the case. Due to widespread over-optimism beforehand, many of our country's financial institutions did not adequately assess the risks of this referendum and rashly entered long positions, leading to a large number of long positions being harvested by short sellers in the market.
Looking at it this way... if the final outcome of this Brexit referendum is indeed to leave the EU, what our country loses is not just the EU economic system, but also a massive amount of capital invested in the financial market for long positions."
"Yes," Alex said, "The public's choice will cause immeasurable and massive losses to our country's economy and finance."
"But the outcome is basically determined now," Claude said, "We are powerless."
"Sigh..." Thinking of this, Alex couldn't help but sigh heavily once more.
And amidst his sighs...
The GBP exchange rate, in a continuous nosedive, had broken through the 1.3270 mark, hitting a 40-year low since 1975.
And at this very moment.
Countless long-position capital institutions worldwide saw their wealth evaporate.
In the market, an astronomical number of speculative and investment traders holding long positions were liquidated, with countless others facing margin calls.
"The moment of the avalanche, truly beautiful!"
Seeing that the GBP exchange rate had not stopped its decline even after breaking through a 40-year low, in Modu at this time, in the main speculative fund group of the Modu Ultra-Short Gang where Su Yi was.
Xu Qiao, who had already earned over 2 million USD and tens of millions of Huacoin in profit, said excitedly.
"I really didn't expect the final referendum result to actually lead to a Brexit situation," Lao Wu said with a chuckle, "Su Xiongdi truly bet all his capital, gambled big on this referendum, and massively shorted the GBP exchange rate, and he won again. Su Xiongdi's courage... is truly admirable!"
"Indeed," Lao Zhang responded appropriately, "I wonder how much Su Xiongdi made this time?"
Chen Ge replied,
"Calculated based on the short positions announced by the 'Huayi Chengyuan No. 1' main fund previously managed by Su Yi, if he hadn't closed positions and taken profits in advance, he should have at least 10 billion Huacoin in profit by now."
"Holy shit, 10 billion in profit?" Lao Zhang clicked his tongue, "That's terrifying!"
"If Chen Ge says at least 10 billion, then it's definitely more than 10 billion," Xu Qiao said, "After this battle, Su Xiongdi is truly famous in the domestic financial world."
"It's not just the domestic financial world," Lao Wu said, "Our country's capital investing overseas and making such a huge profit is truly unprecedented."
"The key is... the 'Huayi Chengyuan No. 1' hedge fund product, its capital source seems to be mainly Su Xiongdi's own funds, right?" Lao Zhang said, "After this battle, Su Xiongdi's personal wealth will likely head straight for the tens of billions. He'll definitely be ranked on the domestic rich list."
"Does that even need saying?" Xu Qiao said with a laugh, "When Su Xiongdi returned to Modu to raise funds before, those bosses who refused him probably regret it bitterly now."
"Haha... it's time for them to regret." Lao Zhang laughed heartily.
And just as they were discussing...
As the GBP exchange rate hit a 40-year low, and it was clear that the 'Huayi Capital' institution managed by Su Yi had made a fortune in this round of shorting the GBP exchange rate.
In Modu and Hong Kong, many people associated with 'Huayi Capital'.
Had their emotions affected.
And coincidentally began to closely follow 'Huayi Capital' and Su Yi's next moves.
(End of chapter)