I had the H1N1 virus over the weekend, so I wrote this article. Now that I’m well, I’ve made up for what I owed.
The coin TROY was added with the observation tag by BN officials together with STMX. Let’s look at STMX first. After the news came out, it quickly fell in volume. It was a reasonable trend. Event-driven traders could not compete with quantitative traders.
But Troy is very interesting. After being added with the observation tag, he should theoretically fall in volume like STMX, but he chose to go sideways, which is unpredictable. Until the sideways trend shows a direction, it is hard to say what the dealer will do, because the sideways trend after the big negative news has shown the dealer's strength - absolute control over Troy. Others have no goods to smash the market. As long as the dealer does not smash, the price of the currency will undoubtedly remain stable.
Then TROY began to move slowly downward, which was normal, because it had been marked with an observation label. Although it was under observation, it had not yet reached the point of being delisted, so when it slowly went down, it was just the dealer testing the market's buying momentum, because the dealer's contract was net long, and there were not enough short positions. The market itself was already thinking about a drop, and if the spot was dumped rashly, there would be basically no bottom support. The rapid decline would cause the contract position to suffer huge losses. After a small negative line appeared, it was found that the market's buying momentum was insufficient. At this time, the TROY dealer showed his real fangs.
Before analyzing the techniques, let me first talk about a very critical piece of knowledge - forced liquidation funds. The source of this liquidation fund is the liquidated position. For example, you opened a coin with a full position of 1u, 20x leverage and a margin of 100u. Logically, your position will be liquidated (five points) when the coin price reaches around 0.95, but in fact, most of the altcoins will be liquidated as long as they fall to 0.975 or 0.97. Among them, 2%-2.5% of the funds are allocated to the forced liquidation fund. The purpose of this forced liquidation fund is to make up the negative amount for those who have lost their positions. Still the same coin, 1u full position opened 20 times, leverage margin 100u, if it slowly falls, then the position will be liquidated at 0.97, but if the dealer lets the market slowly fall to 0.971 and then the next transaction goes directly to 0.9, then you will close the position at 0.9, the actual loss amount is 200u, and your original margin is 100u, then your account balance is 100-200=-100, but don't worry, this -100u, BN will use the risk guarantee fund established by the forced liquidation fund to help you make up, let your account return to 0u so that you can enter the market again. Looking at it in a circle, the short sellers made 200u, you lost 100u, and the remaining 100u is equivalent to the exchange giving the short sellers, so that those who see the right direction and do the right thing can get their profits in full.
So what did TROY dealer do with this mechanism?
They placed a huge buy order at the position of 0.0074, and then used another account (or it could be another group) to short sell with a full position at 20x (or more) leverage. At the price of 0.0074, there was a huge amount of trading and position increase. After the short account group completely ate up the long orders placed earlier, the price was quickly raised to cause the short account group to be liquidated. The buying orders generated when the short account group was liquidated allowed the main force to easily close the long orders at 0.0074. At the same time, the rapid price increase would allow the momentum trading quantitative robots and retail investors who were waiting outside the market to quickly rush into the market to go long, because observation ≠ delisting ≠ plummeting. The ability to control the market has been demonstrated before. It is also reasonable to make another wave of price increases before delisting to clean up the short liquidity, just like a moth to a flame, brilliant but only for a moment.
People in the market are desperately scrambling to get buying orders. The dealer's long orders have no worries about selling, and they can even open short orders. Once the dealer completes the position conversion of the contract, what follows is a ruthless dumping of the spot market.
A day later, bn officially announced that TROY was prohibited from being deposited on the bsc chain because it was suspected of having an unlimited issuance mechanism.
The earlier you understand it, the more money you can make. I saw it when the dealer opened double positions at 0.0074#加密市场回调 #市场调整策略
