Chapter 268: Wall Street’s frequent flyers!

In the underwater trading room at the bottom of the Pacific Ocean, Chen Jue watched the old merchants constantly typing away on their keyboards, quickly placing a huge number of short orders in the chaotic U.S. stock market and the Chicago futures market.

Due to the existence of “financial derivatives” in the American financial market, if $1 flows into this market, it can be used to leverage 100 to 200 US dollars for speculative operations through crazy leverage.

Moreover, the quantitative trading program written by Lao Shang not only has a fast sub-account fission, but also has a special “hedging” risk warning.

Coupled with the quick-response millisecond-level trading techniques of the Iron Fools, as long as the opponent is a human, they can basically maintain the myth of being undefeated forever!
Of course, the main force shorting the U.S. stocks and soybeans this time is not just Chen Jue himself.

After planning for such a long period of time, the real national team under the central bank, such as Bank of China Futures, has now lurked in the market.

Everyone is staying up late, staring at the market, waiting for the storm to really come!
……

Just as the Eastern Hemisphere entered night, the Western Hemisphere, far across the ocean, ushered in daylight.

As the sun slowly rises, Wall Street on Broadway in Manhattan, New York, America, enters its morning rush hour.

Yellow taxis are flowing on the streets. Financial professionals in suits and ties, carrying briefcases and holding steaming American coffee, walk into large buildings such as NASDAQ, the American Stock Exchange, and the New York Board of Trade.

Of course, in addition to these exchanges, large American and Western financial groups have set up offices in this CBD.

The Rothschild Group, the Morgan Group, the Rockefeller Group, the Goldman Sachs Group, the DuPont Group and others have all opened their own banks and insurance companies here.

Tom is an employee of one of these companies, Pioneer Navigation Group.

Although this capital group is not well-known in China, ordinary people have only heard of Blackstone, BlackRock, etc., but you only need to know that Vanguard Group, as an old American financial group, controls most of the domestic industry giants.

The shadow of this large capital group can be seen in the complex equity entanglements behind Xiaomi, Alibaba, Penguin, JD.com, etc.

Tom currently works in the grain futures department of Vanguard, responsible for managing the grain-related business within the group.

After getting off the Uber, he passed through several gates and arrived at his workstation with a cup of coffee.

Looking at his colleagues who were hurrying around him, Tom always felt that something big was going to happen in the Wall Street market today.

“Tom! Your supervisor wants you to go to his office for a meeting in five minutes. Remember to check the work list in the email!” A young intern who was running around in the aisle of his workstation stuffed a work note in.

In today’s America, those who can work for large conglomerates like Vanguard are all top college graduates.

These people receive high salaries and benefits and lead an enviable life of luxury.

Even as an intern, you can get a salary of nearly $10,000 a month, which can be said to be a microcosm of the American dream in the past.

“Meeting?”

“Which sector has seen unusual movements again?” Tom took the note and took a look at it, then quickly opened his trading tool and looked at the colorful K-line chart.

“There’s nothing unusual!”

Tom muttered, cleaned up his desk, and went to the office to attend an early trading strategy meeting.

Listening to the various trading strategies arranged by his supervisor at the meeting, as well as the main focus of grain futures, Tom began to daydream.

When I returned to my workstation, it was already 9:29.

This is the time when all major futures markets are about to open normally.

As the familiar bells rang, Wall Street once again entered into a busy day.

Capital from all over the world began to converge in the market. Short selling, bullishness, and high-frequency trading put front-line traders like Tom into a state of intense involvement.

But as soon as the market opened this morning.

The CBOT soybean sector of the Chicago Stock Exchange experienced abnormal fluctuations, with huge short orders from all directions beginning to pour into the market as if under the command of some mysterious force.

“Level 3 warning: CBOT soybean risk warning!”

“There is a 12.9% chance of liquidation in this sector. Please adjust your position as soon as possible.”

Seeing the AI ​​trading program pop up a position warning, Tom immediately switched to the soybean sector and readjusted his positions.

Just looking at the big black candlestick that soared into the sky and the short orders that kept piling up in the market, Tom felt that his hand speed was a bit slow to keep up. He watched helplessly as the subsequent second-level and first-level alarms popped up automatically, and then his CBOT soybean positions exploded without any suspense.

“shit!”

“Damn it!”

“What’s up with soybeans?”

Tom was completely stunned as he watched his position worth more than 1000 million US dollars being cleared out in an instant.

For traders like them, their salaries and commissions depend entirely on profits.

Now that I have lost the principal of my holdings, not only will my welfare bonus for this month be lost, but my position sequence level will also be affected and adjusted downward.

However, what Tom did not expect was that his soybean futures margin call was not an isolated case.

During this short period of time, Tom heard the same curse coming from several workstations near him. Many of his familiar colleagues were exclaiming, “CBOT soybeans!”

In the Chicago Futures Exchange, the price of U.S. soybean futures plummeted from 1023 cents per bushel at the opening to 956 cents per bushel, a drop of 6.5%!

Immediately afterwards, before anyone could react.

There was a technical suspension of U.S. soybean futures because the price of U.S. soybeans on the market had dropped to 935 cents per bushel.

A drop of more than 8% successfully triggered the circuit breaker mechanism of the trading market!
The entire process from the opening of the market to the occurrence of the circuit breaker took no more than half a minute, 23 seconds to be exact.

This speed is difficult to adjust to with human reaction speed alone. Even top traders will feel caught off guard.

It was not just the Vanguard Group where Tom worked, but the entire Wall Street market was wailing at this moment. More than one million U.S. soybean call options were collectively liquidated due to the initial circuit breaker.

This scene is even more ferocious than the frequent Bitcoin crashes the night before!
“WTF???”

“What black swan event happened?”

“Why did CBOT soybeans fall so much!”

Tom held his head at his workstation and asked his colleagues who were equally confused.

As a result, when the alarm bell in the office sounded, indicating that the “fuse” mechanism was triggered, several supervisors in the deepest office all ran out in horror.

“Fuck!”

“Fuck CBOT soybeans!”

“Fuck USA!”

Then, Johnson, a manager Tom knew who was in charge of the CBOT soybean fund, smashed his head into the window of the 23rd floor and jumped down in full view of everyone, becoming one of the many Wall Street frequent flyers.

“Oh~shit!”

“OMG!”

There was an exclamation in the office.

Because in the circuit breaker just now, more than tens of billions of US dollars of Vanguard Group’s soybean funds were wiped out.

Some of the funds were the personal property of Director Johnson.

Just 23 seconds into the game, all the hard work of his life was wasted due to the high leverage.

Thinking of the subsequent punishment from the group and the experience of going from heaven to hell in a flash, Director Johnson couldn’t stand the ups and downs of life, nor did he want to go to Central Park and sleep on the street like a homeless person.

So I gave myself some dignity, took the plunge, and chose to start over in life!
Tom, whose brain was dazed by the scene of the man jumping off the building, glanced at his computer out of the corner of his eye. An urgent push from the market caught his attention.

“CNN: The Ministry of Commerce of China announced that due to the application of new soybean varieties and the substantial increase in independent soybean production capacity, it is expected to stop importing more than 5000 million tons of American soybeans from the United States each year starting next week.”

(End of this chapter)