To float the loader lift arms, you push the loader valve handle all the way forward past the position that usually lowers the arms. There should be a detent that holds the valve spool in float position. I"m guessing the valve you are referring to is the self-leveling valve - a separate small valve with a black plastic knob on it. It diverts oil from the loader arm lift cylinders and sends it to the bucket curl cylinders to try and hold the bucket level as you lift the boom. The valve only moves in out less than one inch. Try some penetrating oil and a few light taps with a hammer.
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