Yes, the type of manipulation you are referring to is one of the techniques that can be used in the futures markets, where platforms or large entities can influence market movements by selling huge amounts of currencies at support points in order to liquidate positions for traders who use leverage.
How is this manipulation done?
Selling large quantities at support points: In futures markets, there are many traders who use leverage to amplify their profits. If the currency is trading near a strong support point, some traders enter into long trades because they believe the price will rise again.
Liquidation: If a large entity or platform sells large amounts of the currency at these points, the price may drop rapidly, causing traders who had long positions at that point to be liquidated. Consequently, these traders lose the amounts invested in futures trades.
Profit for Large Entities: After liquidating these positions, the large entities that manipulated the sale can buy the currency back at lower prices, allowing them to profit when the price rises again.
Is the platform itself involved?
Trading platforms like Binance provide a transparent and automated trading environment for making trades, but there is always the possibility of market manipulation by some big players. The platform itself may not be directly involved, but in some cases, manipulation may occur due to the following factors:
High trading volume: Platforms may not be able to stop some of these manipulative activities, especially if they occur during non-active hours or in ways that are difficult to detect.
Huge, fast-acting offers: These strategies can move the market significantly in short periods of time.
Protection against this manipulation
To protect yourself from such types of manipulation, you can follow some tips:
1. Use Stop-Loss orders: to avoid large losses in case the price moves suddenly.
2. Close monitoring of technical indicators: Use multiple technical indicators such as trading volume or the Relative Strength Index (RSI) to see if there is market manipulation.
3. Reduce leverage: Avoid using high leverage, as this increases the risk of liquidation.
4. Check for abnormal movements: If you notice a sudden drop in price near an important support level, try to check for abnormal movement in the market.
Ultimately, it is important to be careful when dealing in futures markets as there is always a chance of manipulation by large traders or even entities with the power to influence the markets.