Many people are very concerned about the "dog dealer" problem. When the funds for the derivatives market such as contracts accumulate to a certain level, it will trigger the long-short game.
To put it bluntly, the bulls want to rise and kill the opponent's shorts, and the shorts are the same.
However, the decision whether the "dog dealer" should work is not to look at the accumulated funds alone, but also to look at the trend.
It's very simple. At present, the bulls are in a strong mood. Many people think that the bears must make trouble and explode the bulls.
However, if the current main market trend is bullish and the bulls are in a strong mood, then it is obviously inappropriate to choose to sell at this time to smash the price.
Because under the support of emotions, the price of the currency is difficult to be smashed down, and even if it is smashed down and eaten up by retail investors, it will not achieve the desired effect. At the same time, selling at this time may not achieve the desired effect, and it will take more goods to lower the price.
Therefore, in a unilateral trend, the "dog dealer" will be more cautious, and at most will protect the market appropriately at the point where it clears itself.
If it smashes the market against the trend, it is very likely that the chips in hand will be lost and cannot be taken back, resulting in losses.
What's worse, they use borrowing to get chips. If the operation is not done properly, the borrowed chips are smashed at a high price, the price does not come down, or the chips are lost, and they need to pinch their noses at a high price to repay the loan.
Therefore, the best game point in the derivatives market is the stage of low market liquidity, weekends, or the critical point of market sentiment outbreak