Current location - Trademark Inquiry Complete Network - Futures platform - In futures, if there is a big drop, why do positions and trading volume decrease? Doesn't it mean that the decrease in trading volume and positions during the decline indicates that the decline has we
In futures, if there is a big drop, why do positions and trading volume decrease? Doesn't it mean that the decrease in trading volume and positions during the decline indicates that the decline has we
In futures, if there is a big drop, why do positions and trading volume decrease? Doesn't it mean that the decrease in trading volume and positions during the decline indicates that the decline has weakened? There are many possibilities.

First, in the process of sharp decline, because the price deviates too far from the moving average, bears are eager to close their positions and make profits, so they will lighten their positions when they are close to the moving average;

Second, there is a big difference between falling and rising, because falling itself has inertia and so-called gravity, which means that the price itself has the property of falling sharply, not rising sharply; Therefore, in many cases, there is no need for a reason to fall, which is a natural attribute of the price. The reduction of positions and trading volume does not mean that it will stop falling, but can only be regarded as a feature of falling relay;

The last possibility is to change the month. It is normal for the contract to plummet when the month is changed. This is the most obvious if you look at stock index futures carefully.