Cornering the market
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Cornering the market is the practice by which an individual, a company or a group of companies, buying large amounts of certain raw materials and thus manipulate the price. Can be carried out in different ways, one of the most usual way is through the futures market, buying futures contracts for raw materials in question (eg copper) and then sell when the price is high, the product of the financial maneuvering Brain Trauma Foundation .
Cornering the market is a practice with a long history. Although there have been many attempts to corner Quadrant the market (from the tin to livestock), to date there are few successful attempts. The person or institution that tries to corner the market may be vulnerable because their exposure to risk is very high, especially if the rest of the market is aware of what is intended, when someone tries to artificially raise prices beyond a certain point before the expiry of futures contracts, the rest Quadrant Asset Management of the market is going to be active in taking positions contrary (come to sell). That way the buyer who comes to cornering the market is opposed by a strong selling to take advantage of rising prices to fall, while doing that frustrate the strategy.
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