People often talk about exchanges "inserting needles" and "point blasting" on contracts, but those who say such things simply do not understand contracts, let alone the matching mechanism of exchanges.

"Inserting needles" and "point blasting" may occur on some small or unpopular coins on exchanges, but such situations will never occur on mainstream coin contracts, even on second-tier exchanges.

The so-called "inserting needles" refers to a sudden sharp drop in price followed by a rapid recovery, or a sharp rise followed by a fall back. This phenomenon exists in the trading of any financial derivative product, and some people are liquidated due to such large fluctuations. What's even more unacceptable for those who are liquidated is that the price quickly recovers after the liquidation. It is understandable that the liquidated party feels targeted, but if you are long and get liquidated due to a sharp drop, then wouldn't the short position profit greatly from this sharp drop? Moreover, if the long positions placed at the bottom of this sharp drop are all executed, wouldn't the "needle" make a big profit? Those who do not understand contracts may think that being liquidated means being liquidated to the exchange, but for a matching trading system, being liquidated means being liquidated to the counterparty, not the exchange. Of course, the exchange will have its own proprietary positions. As for OTC price-knocking contracts, although MT4 is a market-making system, large MT4 platforms cannot make much profit from client losses, because on large platforms, the number of long and short positions is almost equal. When I was in Hong Kong, I saw this very clearly in the "trading room" of Richemont.

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