Many futures investors may not know much about futures short positions. In fact, the forced liquidation of futures refers to the behavior that users use their financial advantages to deliberately raise or lower the futures market price by controlling futures trading positions or monopolizing deliverable spot commodities, forcing the other party to default or liquidate at unfavorable prices, so as to reap huge profits.

Will futures fall after forcibly opening positions?

There are two main ways to force futures positions: short positions and short positions. Bears are generally bears, and only a few are bears. If you take long positions, it means that the current price of futures deviates from the fundamentals. Whether the short position is successful or not, the futures price will fall back to the fundamentals after the short position. If there are too many short positions, the futures market price will also fall sharply, and the price will continue to fall after the futures are forcibly closed.

The bulls will close their positions and take profits, mostly to force the empty heads to admit defeat and lighten their positions. Once the bulls fail to forcibly open positions, futures prices may fall sharply in the short term. Bears are bulls with certain fundamental support. As long as the bears really can't deliver, they can only lighten their positions and stop losses in futures, and then the bulls will have rich profits.

In the futures market, forced liquidation 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 has to reduce its position and leave the market. On the one hand, there needs to be enough funds, on the other hand, there needs to be enough supply. At present, few short sellers will take this kind of forced liquidation.

Simply put, no matter which side the investor belongs to, try not to be forced by others. Futures trading can be long or short, but when to choose to be long or short is ultimately determined according to market conditions.