The Influence of Institutions on Market Volatility

Recent thoughts are

The repricing of the market will lead to adjustments in institutional positions

And this is the greatest force driving K-line movements in non-bull markets

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Is it unclear?

Let me give you an example

Assume a certain institution currently has a short position of 90000

When the Federal Reserve points to a higher probability of interest rate cuts in December/better economic data/improved liquidity

Then the institution's short position of 90000 will be quickly closed

And will create an upward risk exposure

The adjustments by institutions will directly lead to a large number of liquidations in the market (institutional positions are generally very large)

Thus creating a direct counter force on the market

This is how institutions influence market volatility