(2) as the main fund; Lock not only has the function of controlling price; There are more considerations for controlling risks. In this way, no matter where the futures price changes (up or down), it will not increase or decrease the position profit and loss. This is huge for the amount of funds; The main force of high profit and loss is an important tool for fund management. In particular, a large holding company can be called a "magic weapon".
(3) Several situations in which the main force uses the locking operation to control the disk and seek greater benefits:
First, use locked positions to run retail investors.
If the main force controls a certain number of long and short positions in a contract, that is, it has locked the positions, then the main force will cause price fluctuations in the process of hedging, especially when the hedging operation is consciously concentrated in a short period of time, which will make this fluctuation more intense. When a large number of empty orders are hedged in a short period of time, the price will rise sharply; On the contrary, hedging multiple orders in a short time will lead to a sharp drop in prices. This is the important reason why the mung beans, coffee, natural rubber, rubber board and red beans we see have experienced repeated shocks from daily limit to daily limit and from daily limit to daily limit in one day. In this case, whether retail investors are long or short, it will be unbearable and all of them will be run by the main force.
Second, cover the shipment with a lock.
Because futures contracts have delivery dates, their speculation is strongly limited by time. When the futures contract is about to expire, the position level must be reduced to a certain range. Otherwise, it is very difficult to deliver a large number of firm orders, whether it is to undertake long positions of firm orders or to sell short positions of firm orders. Therefore, both long and short sides hope to reduce their positions in a way that is beneficial to them, but in fact only the stronger side can realize their wishes. For example, people who are long want to ship at a high level, but a large number of bulls are hedged out, which is likely to cause the price to fall back. This is a contradiction. So how to solve this contradiction? If the main force of the bulls is the party with relatively strong financial strength, locking in the forward contract and having enough speculative time can push up the price. In this bullish atmosphere, short positions that are too late to retreat will be automatically stopped by the hint of "price increase and heavy volume", so long positions just swallow the short stop loss and go out smoothly. Although this kind of lock warehouse itself does not increase any profit, it can effectively realize the shipment of profitable positions and consolidate the vested profits. Here, we will explain the situation of long shipment, and the method of short shipment is the same.
Third, use lock warehouse to control the development of the market.
When a main force has obtained a certain number of long (or short) positions, if it continues to promote the market by increasing unilateral positions, it will easily lead to the passive consequences of being too big to get out, and even get into a quagmire. However, if the main force breaks through the key price by knocking, it will lead to a technical one-sided view, which will lead to a large number of subsequent orders. "When people gather firewood, the flame is high, and the price will develop in one direction. At this time, the original position of the main force will benefit a lot, and at the same time it can be safely out. This kind of "inducing" retail investors to follow suit can really achieve the effect of "Tai Chi Master". When others understand, the one-way position of the main force has left the market, leaving only lock orders that can be hedged at any price, thus staying away from risks.
Fourth, prepare for market reversal by locking positions.
The development of the futures market is restricted by the spot price, and it is impossible to develop to one side indefinitely, which makes the controlling party face greater market risks while enjoying greater profits. Therefore, when a contract is pulled up or suppressed, it is called intertemporal arbitrage to establish a reverse position on other contracts to achieve the purpose of insurance. This can also be seen as a modification of the locked position, that is, the lock in the same month has become a cross-month lock, which not only avoids the profit restriction of the locked position in the same month, but also helps to obtain reverse chips and prepare for the position transfer. For example, in July and August of 2000, the main force of Dalian Bean Control continued to suppress the price, and at the same time established multiple orders on contracts such as S 10 1 S 105, and the positions increased rapidly. Until the end of August, the bulls made a big counterattack, and there was a rapid bull market in which futures prices rose sharply.