What does it mean to open a position by force _ What does it mean to open a position by force?
What do you mean by forcibly opening a position? The following is answered by the bank's interest rate network: Market Corner refers to the trading behavior that one party uses the advantage of funds or warehouse receipts to guide the market to move unilaterally, resulting in the other party's continuous losses and finally having to cut its position. Generally divided into two forms: more empty positions and more empty positions. Market monopoly is a kind of market manipulation, which mainly manipulates the spot market and the futures market to force opponents to submit, thus achieving the purpose of profiteering. In the early stage of the development of China futures market, forced liquidation frequently occurred. Besides the defects of the distribution system, the unreasonable market structure is also one of the important reasons. This irrationality is mainly manifested in the underdevelopment of hedgers. China is an important commodity producer and consumer in the world, and it has great potential to develop hedging. However, the important work of tapping potential was ignored by people's thought of quick success and instant benefit at that time. In the early stage of the development of the futures market, the limited delivery system was implemented, which may be due to the national conditions. Designers of trading system intentionally or unintentionally ignore the process that must be experienced to realize small delivery, blindly demand that the delivery volume should reach the ideal state of the international market at the beginning, pursue the effect of small delivery through the design of limited delivery system, and restrain hedging activities to activate the market. Facts have proved that this practice is not feasible, it provides institutional support for short delivery, and also makes small delivery bubble. It is illegal to hold a position by force. In the United States, forced liquidation generally occurs when the deliverable spot quantity is not large. Buyers in the market are forced to close their positions, including a large number of spot positions and a large number of futures [1] positions, so that empty parties or sellers without spot positions can only close their positions at a higher price after delivery, and futures prices generally deviate from spot prices. This is called forced position. Forced positions can be roughly divided into two ways, one is to be long and the other is to be short.