How does commodity futures look at the short market from the number of warehouse receipts?
There is no doubt that the key here is to control the spot. As far as commodity futures are concerned, the varieties traded are all varieties with huge output. As far as the narrow sense of the futures market is concerned, the supply is almost unlimited. Therefore, it is actually very difficult to force short positions, and it is possible to use time and rules skillfully. Forcing is the other way around, but the problem is that even if the price is very low, many parties can still choose to deliver and receive goods. At this time, although many parties have losses in price, for the empty side, such losses cannot be converted into profits, so there is no reason to do so. As can be seen from the above two points, these have nothing to do with warehouse receipts. Therefore, from the number of warehouse receipts, there is no forced market. In addition, more often, the word "forced warehouse" is only circulated through gossip. After all, this thing is more emotional and easy to tell stories, and it has not been seen in commodity futures for a long time. The famous forced positions in history all happened in stocks. What is the reason? Combined with what we said above, the most important thing for short positions is to control the spot. For stocks, it is tradable shares. The number of tradable shares is fixed and easy to raise, which is very suitable for short positions. (Of course, the market must have a short-selling mechanism, and it is best to have a margin system. )