American Ranch

Chapter 513 Manipulating the Market?

At Haikou Airport, Chen Chen went to pick up his classmate.

"Old classmate, long time no see." Chen Chen was dressed in a black hand-made casual suit, opened his hands, smiled and hugged Zhang Chen.

This is Chen Chen's old classmate, they have a very good relationship, he seems to have come here during the family reunion year of Chen Mo's family the year before last.

The two smiled at each other.

After leaving the airport, Chen Chen opened the rear door of a Bentley Mulsanne, pointed at it with a smile, Zhang Chen lifted the suitcase up in a daze: "Yes, I didn't believe you when you said you were a billionaire before, I have some letters now."

Chen Chen scratched his head and smiled: "It's my brother who has developed, and I'm working with my brother now. By the way, don't leave this time, stay and help me with things."

"How much salary will you give me?" Zhang Chen laughed.

"How much salary do you want?"

"The monthly salary...at least [-] yuan, it can't be much lower than my current salary. I still have to support my wife and a child who is about to be born."

"I'll give you a monthly salary of [-]." Chen Chen invited Zhang Chen to take the co-pilot seat, and he sat in the driver's seat and started the car.

"A monthly salary of [-] is too high, I'm not worth it..." Zhang Chen shook his head vigorously.

"It doesn't matter whether it's high or not. Maybe after a while you still think the salary is too low and you have to do it yourself."

Zhang Chen shook his head: "I don't do illegal things. That's my ability. What kind of job can earn a monthly salary of [-]?"

"You'll know when it's over."

When they arrived at Yunshan District and Yunshan Market, Chen Chen went directly to the trading area on the second floor.Yunshan Market has been closed before, and Chen Chen came here for the first time, so he doesn't know much about the trading rules here...

There are many people like Chen Chen who are standing in front of the big screen watching the scrolling information on it...

'Today's guide price for pigs is 22.65 yuan per kilogram...'

"The first-hand contract for pigs in June is 6 yuan." The first-hand contract is for 20 pigs, and the contract is issued by the Yunshan Trading Market. With the contract, you can go to the farms you want to sell live pigs in Yunshan District to see which one you value The pigs in the farm are gone, and then choose...

The book value of the first-hand contract is 20 yuan, but the actual payment only needs to pay 8 yuan to hold the first-hand contract.

The first-hand contract is for 11200 pigs, and the physical delivery is carried out. If the total weight of 22.65 pigs is 25.368 kilograms, if one kilogram is calculated at [-] yuan, the price of [-] pigs should be [-] yuan.Physical delivery, the transaction is carried out according to the market price at that time, and the spot can be withdrawn after making up the difference...

After all, the contract sold at Yunshan Market is 8 yuan in one hand.And a hundred pigs can't even be worth 8 yuan.

The price of pork in the market is always changing.For example, in May, you can buy live pig contracts for slaughter in June, and you can also buy live pigs for July, August, and September... This year, there are live pigs for every month.

For example, in June, Yunshan Market has confirmed that it can facilitate the transaction of 6 million live pigs, and a contract is 200 pigs.But the seller of the contract is not Yunshan Market, but various breeding companies...

Yunshan Market is just an intermediary, responsible for facilitating physical delivery or contract transactions, as well as a supervisory role.

Yunshan Market, in some respects, is similar to the futures market, but it is not a futures market.However, the transactions involved in the Yunshan market are huge, and the government has sent financial institutions to supervise them, and they are stationed in the market.

The generator of the contract is the breeding company, and the breeding company puts the contract on Yunshan Market for consignment.

In other words, the contracts issued from the Yunshan market are all 'put' contracts.Then someone comes to buy this contract, and the person who buys the contract is 'bullish'.

And the contracts sold from Yunshan Market can be traded on the platform of Yunshan Market before the contract trading date... How many contracts can be issued in Yunshan Market mainly depends on how many contracts can be sold by the breeding company contract.

In addition, the breeding company that sells the contract needs to pay a deposit to Yunshan Market to prevent the failure of physical delivery.

But if you want to enter the Yunshan market, you not only need to check whether the other party has qualifications, but also pay a settlement fee.If the entry fee is withdrawn from the market, it will be returned...

Regardless of how the Yunshan market operates, there must be enough goods for physical delivery in the end.This is the requirement of the government management agency... For example, in June, only more than 2 contracts can be issued in theory, but in practice, the number of contracts that can be issued is far more than 2.And the most important function of Yunshan Market is to facilitate the simplification of mass purchases...

"This is... the animal futures market?" Zhang Chen asked while looking at the information scrolling on the big screen.

"Almost." Chen Chen smiled: "Let's go, let's go shopping first."

"The hairy pig is 22.65 yuan per catty?" Zhang Chen looked at the big scrolling screen. He remembered that the pork he bought in his hometown was 19 yuan per catty.

"Kilograms, kilograms, look at the unit." Chen Chen put Zhang Chen's shoulders: "Seeing this, do you have any thoughts?"

"Here... looks similar to futures trading." Zhang Chen shrugged: "I have to look again..."

After walking around for a long time, Zhang Chen shook his head: "There are too many loopholes in this kind of trading market."

"Tell me."

"The transaction in the market is a contract. For one contract, the subsequent unit is one hundred. But when it comes to physical delivery, the specific price is kilograms... But this market should not be big. If there is enough capital, does that mean it can Operate this market?" Zhang Chen and Chen Chen are from the same school, but have different majors, Zhang Chen majors in finance, and now also works in the marketing department of a large supermarket chain.

"Enough capital...to operate the market...how to operate?"

"As far as the June contract is concerned, a contract is fixed at 6 yuan. The contract price is not equal to the price of 8 live pigs...but holding a contract, in some respects, is equivalent to holding One hundred pigs were killed, and the pigs weighed more than 100 kilograms."

"Ah?" Chen Chen looked at Zhang Chen.

Zhang Chen stroked his chin: "You can buy or sell here. That is, individuals can borrow contracts from the market and sell them, as long as they buy the contracts back and close their positions before the contract delivery date..."

"Ah?" Chen Chen was dumbfounded by what his old classmates said.

"In this market, the live pigs that can be delivered for physical delivery every month should be limited."

"of course."

"It costs 8 yuan to buy a contract, and it costs 8 yuan to sell a contract borrowed from the market."

"The handling fee for buying a contract is 100 yuan. The handling fee for lending a contract is 300 yuan." Chen Chen said with a smile.

"Then if you have enough capital, does it mean that you can monopolize the contract for a certain month..."

Chen Chen rubbed his chin: "You may be mistaken about one thing. It is true that a contract is 8 yuan, but it is not a fixed 8 yuan... leverage is used in this. A pig contract is equal to 100 pigs, This includes deposits and security deposits."

Zhang Chen interrupted: "I know, but a contract is 8 yuan, fixed, and there is nothing wrong with it." This is similar to spot gold... Zhang Chen continued: "If there is enough capital, then You can monopolize the pigs for a certain month. After all, this market is not big. After monopolizing the contract, the price of pork will definitely rise..."

"How much money do you think can monopolize a month's worth of pigs?"

There are many people in the market, but there are not many people in the trading area.After all, it is the first day of opening...

Besides this market, he had never even heard of it before.

"How many tens of millions of pigs have a monopoly for a month? Within [-] million, it should be possible..."

Chen Chen was speechless. As far as he knew, Yunshan Market could facilitate the delivery of 6 million pigs in June.This is still the most conservative estimate... The companies that have settled in the Yunshan market are not just companies in the Yunshan area. Six of the 200 largest pig breeding bases in China have settled in the Yunshan market.

To form a monopoly, at least one-third or more must be mastered.Then you need to invest at least 5 million... But what about after that?
(End of this chapter)