This is the question I raised yesterday, and you managed to explain it so thoroughly. This is what we call professionalism.
web3视界
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💥Shocking Revelation! How the Market Makers Make Money with "Pin Inserting"! Are You Being Cut and Not Even Realizing It?
Many people are puzzled by the market makers' "pin inserting" operations:
Prices spike and drop suddenly, returning to their original position, and it seems that the chips haven't changed. So what do the market makers really earn?
In fact, behind this behavior lies precise harvesting techniques and trading strategies:
🔍 What is the real purpose of pin inserting?
Washing and inducing longs/shorts
Pin inserting creates violent fluctuations, triggering panic or greed among retail investors, forcing them to cut losses or chase prices, while the market makers take the opportunity to acquire low-priced chips or sell at high prices.
Triggering liquidation to harvest profits
Instantly piercing key price levels leads to liquidations among leveraged players. Market makers use a small amount of funds to leverage large clearings, buying low and selling high, easily making profits.
Testing market depth and chip distribution
By observing the market's buy and sell walls through pin inserting, they identify key support/resistance zones, preparing for the next step of accumulating chips or selling.
⚠️ Warning against misconceptions:
Market makers "buying and selling themselves"? Not entirely. The key lies in using emotions + leverage + short-term reactions to create profit space. They are not performing meaningless operations but rather betting small to gain big, harvesting precisely.
In summary:
Pin inserting is not for "changing hands", but for "luring the enemy"!
With one action, thousands of retail investor funds may be quietly swallowed.
So, if you don’t understand the market makers’ strategies, it’s easy to become the chives!
Just thought of it again, the pin, the dealer shouldn't be doing it for cashing out, but rather to clean up the bulls before pulling the market up, and to clean up the bears before pulling the market down, making it easier to operate. I don't know if this understanding is correct? But many times after the pin, there isn't a quick pull-up or pull-down, isn't it still allowing other bulls and bears to enter?
向来痴
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How does the dealer make money with pinning?
There is a question I have never understood, how does the dealer make money with pinning? One up and one down, the price returns to its original position, isn't the chip unchanged? Doesn't the dealer need to sell at a high volume, and have someone take over in order to cash out? If they sell to themselves and buy from themselves, wouldn't that be meaningless? Or is it that the dealer's chip cost is low, but that doesn't explain cashing out. I seek clarification from the experts.
There is a question I have never understood, how does the dealer make money with pinning? One up and one down, the price returns to its original position, isn't the chip unchanged? Doesn't the dealer need to sell at a high volume, and have someone take over in order to cash out? If they sell to themselves and buy from themselves, wouldn't that be meaningless? Or is it that the dealer's chip cost is low, but that doesn't explain cashing out. I seek clarification from the experts.
New coin launch, are spot and contracts launched at the same time? I have been trading contracts for several months, but I have never encountered a new coin contract launch. Each time, it takes a long time before I find out that a new coin is launched. The countdown for the exchange's new coin launch time is for spot trading, but it seems that there is no such reminder for contracts, hence this question?
If the bears give the bulls an opportunity, the market manipulators can keep going long to support the market and continuously harvest the short sellers. The manipulators can earn profits while also earning funding fees.
向来痴
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Why is this funding rate so outrageous? How is it calculated? -2%, I shorted, and they directly deducted two-thirds of my profits. I can't believe it.
Why is it that even though there are profits, the automatic position reduction still shows 5 exclamation marks❗Will it automatically close my position?