Manipulation of the market has been encountered since historic times. Speculators have been engaging in manipulation activities for a long time, but corporates and individuals are seen to do the same recently due to the greed of better private returns. These changes have helped them earn a better turnover from the market. Usually, the bond market suffers the manipulation as well as the commodity futures.
The lack of financial knowledge and a poor money mindset may result in you getting trapped into the pit hole of the manipulation, therefore it is necessary to learn and understand the market with the help of good financial books such as Mind Your Money to develop a healthy money mindset. The manipulative delivery has squeezed the futures market by manipulating the future long position in the bond market.
These markets get squeezed into the system and affect it internally. The squeezed delivery attempts on making a profit by providing restrictions on the supply of the cheapest deliverable issues. The actions however increased the price of the original cheap delivery issue price and this forced the holders of futures contracts to deliver the most highly valued issues or even they can buy the futures contract at inflated prices. We may consider the participants of the futures market or the futures exchanges responsible for the squeeze in.
People who understand the market may be ready and well prepared for all the consequences of the commodity market manipulation with their rich and healthy money mindset. One squeeze in the market may generate a period of persistent price distortion which is capable of eating away the economic growth of the futures markets.
This one small activity has the strength to reduce the efficacy of the underlying futures contract after price discovery and hedging. These types of distortions are expected to arise before the actual delivery date and the high amount of futures markets are subjected to squeeze in. Though a large number of consumers are aware of the adverse effects of these changes only the ones with a big-money mindset can handle and manage their money well.
The futures market has faced manipulation for a long time, corrupting the economy of the entire country and some people believe that redefining the manipulation techniques will be the ultimate solution to this problem.
Be financially educated and get a money mindset makeover with the best money mindset coach. It may not be the solution to the persistent problem that the futures markets face but it can at least help you understand the nuances and effects of it better to be able to safely invest your money to get better results and great yield.
A commodity market is a volatile place to make money as well as lose it. Demand and supply are the key factors that help the market remain volatile, the great the demand, the greater the supply, but it all depends on the manipulation of the consumer mindset and the economic value of the product.
The easy step is to learn how to manage your money to solve all your money-related problems.