Why can big money control the rise and fall of futures prices? If someone is short of soybean meal, someone must make more soybean meal in order to make a deal. Long and short pairs
It is somewhat wrong to understand the futures price itself as a topic of speculation by speculators. The main contract we trade is the forward contract, because only the forward futures contract has the price fluctuation of uncertain factors, so we speculators are speculating on this price, which can have a certain impact on controlling the rise and fall of large funds, but it is not absolute. For example, if you have hundreds of millions of funds to operate soybean meal, then you can also see the position of soybean meal. It may have exceeded10 billion, and hundreds of millions of funds are great for us, but not at all for this platform. It can only control the price of a few points under the current situation, for example, it is no problem to raise the price by five points or 10 points instantly, but the trend direction is not determined by funds, but depends on the fundamental situation. For example, the supply and demand of spot noodles have been very good, and the price will rise slowly. If there is more, it will be free. Falling prices mean more short positions and more long positions, so prices will fall. On the contrary, by the same token, just because a person is short on soybean meal does not mean that a person has to make more soybean meal. If so, there will be no price fluctuation, because there are many fluctuations in futures prices, such as multiple positions, short positions, multiple positions, short positions and changing hands. This will affect the decline and rise of prices. I hope what I said is helpful to you. You can also go to the king of speculation forum, where there are many retail exchanges. It is a good communication area for novices and futures experts. I suggest that futures speculation is best to communicate with experts more, so as to make progress.