Rebirth 76: Industrial Internet Empire

"The closing price of the previous day fell by 5-10 points?" A greedy look flashed in James Gorman's eyes...

Yang Mo's CFD short order has a very obvious loophole. As long as the opponent uses it well, he can be invincible!

That is, you only need to violently pull up the market when the market opens in the morning, take advantage of the opportunity of the market opening higher, sell short Nasdaq futures orders at the market price on the Chicago Board of Trade, and then accept the price difference sold by Zhiyuan Group at the previous day's closing price. Contracts, buy multiple orders at a relatively low price, and the scissor gap formed between the two contracts allows investors to win without losing!

"Mr. Gorman, is this money better than the betting company's discount?" Yang Mo asked with a smile.

Only then did Gorman realize that something was wrong. How could Zhiyuan Group, which dominated the capital market, expose such a big flaw and let others take advantage of it? If I had invested at this level, I would have died 800 times earlier.

Mr. Yang, I don't quite understand what you mean? Gorman asked hesitantly.

"With such an investment that is sure to make money without losing money, I think many people will use their capital leverage to the extreme, right?" Yang Mo said.

"You mean..." Gorman said understandingly.

"Haha, aren't violent shocks the most commonly used method by your brokers? You can also use hunger marketing to create the illusion of insufficient CFD chips, inducing investors to grab multiple CFD orders first, and then go to the Chicago Board of Trade to open hedging Empty order..." Yang Mo said meaningfully.

A large green leek field seemed to appear in front of James Gorman. Gorman, who has been working in the financial market for many years, certainly understands what Yang Mo is thinking:

1 Deliberately expose flaws to make investors feel they have an opportunity to take advantage of them. They buy short orders in stock index futures from the futures market, and then buy long orders in CFDs. Regardless of the rise or fall of the stock index, they can make a steady profit from the difference in holding costs and remain invincible... …

2. The money-making effect will cause more speculators to join in and rush to buy CFD contracts. After the purpose of luring more is achieved, the long orders of futures contracts will be withdrawn, so that speculators who are trying to hedge the price difference will be short-sold!

All Ponzi schemes are nothing more than letting the first movers taste the sweetness and then withdrawing the ladder, allowing the speculators who swarmed in to step down...

Even if you are lucky enough to be able to get long CFD orders and short futures contracts at the same time, and have 10-20 points of arbitrage room, you still need to have enough margin to withstand violent shocks, otherwise you will still die. awful!

"Mr. Yang, are you so sure that the U.S. stock market cannot get out of the bear market within a year?" Gorman asked with some confusion after pondering for a moment.

Yang Mo chuckled and said: "Actually, the ups and downs are not important to us! We need to obtain enough hedging short orders to avoid the risks caused by the bursting of the Internet bubble. The same goes for Morgan Stanley, which expands the over-the-counter market. Getting enough commission is the most important thing. As for whether you can ultimately harvest investors in both directions, it depends on your methods!"

After Gorman thought for a long time, he finally nodded and said: "Okay! We will help you as soon as possible to find the opponent for these 100,000 CFD short orders!"

McHarvey quickly printed out the text of the contract and faxed it to the legal department of Zhiyuan Investment Company for review.

"Mr. Gorman, can specific stocks be sold through CFDs?" Yang Mo asked after thinking for a while.

Gorman shook his head and said: "You cannot reduce your shareholdings through CFDs. CFDs only settle the price difference and do not trade physical goods. Moreover, with all due respect, Zhiyuan Group, as the largest shareholder of a listed company, uses its own company's stocks as the target of gambling. Not only does it There are suspicions of violations, because the information is asymmetric and it is not easy to find the opponent!"

"What if we sell stocks of other companies? Don't worry, it has nothing to do with Zhiyuan Group!" Yang Mo continued to ask.

"Of course!"

"Are there any restrictions on the short-selling limit?" Yang Mo then asked.

"The market capacity of spread business is limited. In the final analysis, it is just a betting agreement signed by both parties. It will not cause too much fluctuation in the securities market, so there are no restrictions. If it is a listed company with relatively good performance and operates properly, it may be able to Sell ​​CFDs for more than all of the company’s outstanding shares!” Gorman explains.

Yang Mo thought for a while and then said: "The performance of Intel and Enron is pretty good, right?"

Gorman nodded and said: "In that case, Intel and Enron should be the more representative blue-chip stocks on Nasdaq and Dow Jones! Do you want to short-sell their stocks?"

"If yesterday's closing price falls by 2%, sell the CFDs on Enron and WorldCom stocks, and you can sell as much as you want! Sell 1 million Intel shares if yesterday's closing price falls by 5000%, and sell the stock if yesterday's closing price falls by 5%..." Yang Mo looked at the computer screen, tapped his fingers, and reported a long list of stock names of listed companies...

McHarvey wrote quickly with a pen, but his face showed an expression of disbelief, as if he had seen a ghost.

Gorman was stunned for a while before he reminded him: "Mr. Yang, are you really prepared to short Intel, Enron, and WorldCom?"

Yang Mo nodded without hesitation.

"Being short on WorldCom is understandable. WorldCom's performance has stagnated in recent years and its stock price is relatively high. However, Enron Online's transaction volume exceeded US$3300 billion last year, surpassing Amazon and becoming the leading stock in the e-commerce field. Its stock price has already It has risen to US$81.2. Intel has almost monopolized the most advanced processor business. Last year's revenue exceeded US$280 billion. After a year of adjustment, the stock price is already less than US$50. Are you still sure you want to short them?" Gorman is not sure. asked.

Yang Mo waved his hand and said calmly: "You have to give investors some benefits! Otherwise, if you lose money every time you become your opponent, who will trade with you in the future? No problem, just print the contract as I said. !”

Morgan Stanley's CFD Department and Zhiyuan Investment's Legal Department showed the efficiency of a first-class capital company and completed the review and signing of the contract in less than an hour.

After the signing was completed, the staff of Morgan Stanley’s CFD department, like chicken blood, recommended it to the target customers through various methods!

"What? Selling a short position on the Nasdaq futures CFD that fluctuated by 5% from yesterday's closing price? Are you sure you're not kidding me?"

"Of course! This is a rich Asian client who just got involved in the CFD business. He opened a short CFD order. I thought of you immediately..."

"Okay, I'll be here right away, don't tell anyone else!"

"Sell Enron stock if it drops 2% from yesterday's closing price? Is this true?"

.........