The process of the market maker:

The spot chips of the market maker are extremely concentrated, and very little funds can leverage the spot to rise. Although the process of each market maker is slightly different, the general logic is similar:

- The first step is that the market maker will first build a long contract position at the bottom (I have observed that there are also market makers who do not eat the long contract but only eat the short position at the top, because the spot chips themselves are already long orders, and it is easy to be discovered if too many long orders are built in the contract).

- The second step is to leverage the first wave of spot price increases by pulling the market with small funds, and then drive the contract to rise. At this time, many retail investors who do short-term trading will see that the price suddenly rose by 15-20% inexplicably in one day, and start to short to make money from the band (so you can see that the Funding rate will have a particularly interesting feature. The funding rate is usually the most negative in the first wave of pull-ups and before the final market crash. After the first wave of pull-ups, retail investors and quantitative investors are mainly short, and in the last wave, the market maker is the main short. For example, you can refer to the two recent examples, Rare and High, with pictures attached below).

- Step 3. After the first batch of retail short orders are established, the dealer will use small funds to quickly leverage the spot price to continue to drive the contract price up, and further raise the contract price through the retail short orders that are liquidated (the short order liquidation is a buy order), and then the retail short orders are liquidated in succession, which drives the coin price to rise in succession (many retail investors are not convinced after being liquidated, thinking that it should fall after so much increase, and then continue to short and continue to be liquidated. Here is a sentence, if you want to get rid of the leeks in trading, the first thing you have to abandon is the thinking of "it should rise" and "it should fall").

- Step 4. Until all those who do not believe in it are liquidated or retail investors start to turn long, at this time the dealer should first close the long position, then build a short order at the top, and then ship the spot to complete the harvest. Pay attention to the steps here! ! ! First close long, then open short, then smash spot #美联储何时降息？ #BTC走势分析 #非农就业数据即将公布 #小非农增幅创3年多新低 #英伟达财报