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An example analysis of profit taking
For example, in the futures market, if a trader buys 100 lots of 96.0 1 corn futures at the price of 2600 yuan/ton on June 3, 2002, it will be 1 1 on February 3, 2002. If the trader continues to hold positions and the market price continues to rise, his floating profit level will further rise. However, if the bank declines, the profits it could have made may disappear. At this time, traders should take profit-taking and liquidation strategies.

Profit-taking often occurs in the period of market reversal. Generally speaking, when the market turns from a bull market to a bear market, it is often multi-party profit-taking; When the market turns from a bear market to a bull market, it is often the empty side that takes profits. For example, when the short seller's short contract market price falls, in order to protect the book profit he has already obtained, he will take the strategy of closing the position as soon as possible and turn the book profit into actual profit. On the contrary, for short sellers, that is, many parties, the behavior direction is just the opposite. The profit-taking behavior in the futures market is often related to investors' uncertainty about the market prospect, so they hope to recover the face profit or floating profit they have earned and turn it into actual income.