Stock index futures market.

When the news of another rate hike came, the bears were excited and sold short orders at 2320, quickly sweeping away the long orders at this price.

The market also followed the big short to sell short orders, and soon forced the bulls to 2315, where the bulls laid out the first line of defense, accumulating a total of about 40,000 long orders at the price of 2315.

However, soon this line of defense was broken, and the more than 40,000 lots at this price were swept away again in a matter of minutes, and the value of the stock index continued to fall.

Although it won't take effect until tomorrow, the news of the rate hike is another hard blow to the stock market, with the FT 100 falling sharply after a slight rise, and falling again after just improving.

2314，2313，2312……

These levels are broken down almost in the blink of an eye.

At the price of 2310, the bulls once again arranged the line of defense, this time they threw twice the number of hands than the previous line, a total of close to 100,000 hands of long orders hanging at this price, just waiting for the bears to attack.

People who invest in stock market futures basically have no spot dealers, because stock index futures are delivered in cash, and there will be no physical goods, and there may be some funds that do ETFs, but these funds often use stock index futures as risk hedging.

Therefore, when the wind direction changes, investors who follow the trend often rush to the wind, as if the fire is borrowing the wind and becomes out of control as soon as it starts.

For retail investors, when the trend of the market changes, they must quickly close the transaction before large buy and sell orders, so as to ensure that they will not fail to get any benefits, and will not become cannon fodder when large institutions change the direction of operation.

However, the "time first, price first" trading method derives a variety of operating skills, which are enough to make these retail investors who do not have a large amount of funds stay at a certain price point.

For example, in the past, after the bulls' defense at 2315 was broken, retail investors only needed to sell the contract at 2313 or lower before the bears, and it would be filled quickly. But at the price of 2310, if the bears cannot break through the defense line of the bulls, then the market price will stay at 2310, and retail investors with small funds will not be able to sell short orders below this price.

At such a time, it is still necessary to look at the offensive and defensive battles of large sums of money.

But this also continues to create the question, if a certain bearish has a large amount of money that is enough to shake the entire market for this month's contract, then he can unscrupulously carry out the trick of pulling up and bottoming?

Naturally, the management had this in mind when designing the futures game, monitoring the positions of individual seats at all times, and then adjusting the margin according to the different positions on a daily basis to ensure that there were enough counterparties in the market, as well as warning certain positions with large amounts of seats and asking them to explain their actions.

In a large enough market, they are not worried about price manipulation, but in a smaller market, management will issue a statement to the member companies that their total positions must not exceed the size of one side of the market, limiting their size to a percentage, which is generally 15%.

However, there are still congenital defects in some futures contracts, which is a typical long short squeeze. Most of these futures contracts need to be physically delivered at the time of the delivery period, so the short side must buy the underlying asset specified on the futures contract in the relevant market, and then sell it to the exchange at the price on the contract, which will then deliver it to the long party.

This phenomenon is rare, and most contracts are hedged before closing, but it is not impossible. For example, in some short-term Treasury contracts, the long party can buy the full amount in a previous Treasury auction, and then go long in the futures market and deliberately hedge, waiting until the delivery date to force the short to buy at a price that far exceeds the futures contract.

However, in the stock index futures market, this phenomenon is unlikely to exist.

The momentum of the bears' offensive stopped at 2310, and it will take at least 200 million pounds to eat these long orders, which is undoubtedly a very big threshold for a market with an average daily trading volume of 300 million or 400 million pounds.

But if this pass is crossed, the bulls do not estimate that there is not much money to arrange the third line of defense, and the general trend of the day is so decided.

Nearly 100,000 lots of long orders have been hanging there, without the slightest sign of reduction, which shows the determination of the bulls to hold on, the bears also stopped attacking after tentatively throwing tens of thousands of short orders, and the volume in the market finally stopped after a few minutes of soaring.

At this moment, Zhong Shi couldn't get up at all, most of his 60 million pounds had been converted into contracts, with an average point of 2303, and each contract basically had a floating profit of 7 pounds.

The reason why it is said to be a floating profit is because in case the price of the futures index contract falls to 2303, the profit on his book will be immediately emptied, and if it falls again, he will be called on the margin.

The current situation is that the bulls and bears are deadlocked at 2310, and only then can the two sides have the energy to re-focus on other places.

There were so many things that happened on this day, first the foreign exchange market suffered a serious attack, then a sudden interest rate hike, and then less than a day, another rate hike, which has completely upended many people's impression of the market.

However, history has destined this day to be extraordinary, and many investors will experience more incredible phenomena.

Stock market.

The news of the interest rate hike again made the investors who had finally woken up from the decline in the stock market just now dizzy and golden, and many investors were asking what was going on, but the more professional economists and analysts knew that this was a measure made by the British government in response to the pressure of the foreign exchange market selling.

They may more or less understand that forex speculators have been shorting the pound lately, but there has never been a precedent for a country's central bank to be defeated by forex dealers, so they believe that the Bank of England is well equipped to deal with this currency crisis.

In fact, they are happy with the fall of the pound, which means that British goods are much more competitive, which has a stimulating effect on the economy, and the stock market has strengthened in recent trading days.

Just after they watched the screen in the morning continue to run out of a green line, almost everyone who did the right direction was excited, and they had reason to believe that today would be another day of growth.

Next came the news of the interest rate hike at noon, the real estate sector bore the brunt, the stock prices of a number of well-known real estate companies continued to fall, and the trading volume began to shrink, in fact, it was the stocks of financial institutions, especially the banks, these two sectors accounted for a large proportion of the entire index composition, and soon led to the decline of almost all stocks.

However, there were also those who reacted quickly, and these people quickly understood that the pressure on the British government and the central bank in the foreign exchange market was probably unprecedented, otherwise they would not have announced interest rate hikes in such a hurry. Some of the more daring people even guessed that the British government might not be able to stand the pressure in the foreign exchange market and announce the depreciation of the pound, which would definitely be a big positive for the stock market.

This creates an opportunity to buy the bottom in the short term.

It is under the dictation of this logic that these people began to increase their positions aggressively, and some even eagerly financed from brokers to buy stocks with leverage. It was under the purchase of these people that the stock market showed a short-term recovery, which also gave Zhongshi's funds the opportunity to buy in the stock index market.

However, when the news of the second rate hike came, these people also ran out of money, and before that, the frenzied increase had already exhausted most of their funds.

The stock market is about to slide again, even in a free-fall way.

The long people are frustrated and can't wait to make a move, and there are very few receivers in the market, and the trading volume has fallen rapidly from the peak a few hours ago to the bottom, and even those who have funds in their hands have begun to wait and see, not knowing what the foreign exchange market will be in the next few hours.

Just when most people were waiting, a stream of money that came out of nowhere began to sweep the goods.

This capital is menacing, taking over a large number of stocks in the market, especially the stocks of real estate, banks, financial institutions, and foreign trade enterprises.

Although these companies have different main businesses, they all have one thing in common, that is, they are closely related to financial indicators such as exchange rates and interest rates.

When savvy analysts saw this, they understood after a little contemplation that this was the entry of the forex trader's funds. This means that on the foreign exchange market, the big picture is basically decided.

As a result, analysts and brokers called their clients one after another, urging them to buy stocks at this time, and fund managers quickly understood this and once again instructed their traders to increase their positions.

The foreign exchange market has become clear that the pound is losing.

As the battle is on the front line, the hedge funds on Wall Street, which are aware of the British government's intention to raise interest rates, are the first to enter the market, in addition to the large financial institutions, they have also invested huge amounts of money in the two related markets, and then foreign exchange dealers, although some of them do not invest directly in the British stock market, but it does not prevent them from spreading the news of the collapse of the pound.

The FT index rose in an instant, engulfing the black candlestick at a jaw-dropping speed.

In the stock index futures market, the two sides that were originally stuck also broke the balance of each other again because of the entry of this share of funds, and followed the stock market, and the bulls began to exert force.

……

By the end of the day, the FT 100 had risen from 2,370 points at the opening to a solid 2,378 points at the close, which was also the highest point of the day. After a 3.33% downward shock, it ended up slightly higher by 0.35% throughout the day. (Thank you very much for the tip!) Thank you very much for being able to vote for Sanjiang, even if the position has rebounded a little, the author's depressed mood has rebounded ~ I sincerely hope that more friends can come to support ~ give the author more motivation ~)