Why do many people choose to do futures? What are the reasons for short positions in futures? What kind of knowledge should Xiaobai prepare first when he takes over futures? The following is why the futures brought by Bian Xiao will explode, hoping to help everyone.
Why did futures explode?
There are many reasons for the explosion of futures trading. Here are some common situations:
Leverage: futures trading usually adopts high leverage, that is, controlling contracts with greater value with less funds. When the market fluctuates violently, leverage will amplify the impact of losses, and without effective risk management measures, the risk of short positions will increase.
Unreasonable stop loss setting: Stop loss is an important tool to control risks, but if the stop loss setting is too tight or unreasonable, it may trigger stop loss frequently, leading to loss accumulation. In addition, if the stop loss operation is not carried out in time when the market fluctuates violently, it may also lead to short positions.
Market fluctuation: The futures market price fluctuates greatly, especially for some commodities or financial products. If investors can't correctly judge the market trend, or react too slowly to the market, it is easy to generate huge losses or even explode positions when the market fluctuates.
Lack of sufficient capital and risk management ability: If investors fail to fully consider their own financial situation and risk tolerance, overuse leverage, invest too much money or fail to establish an effective risk management system, they will easily suffer heavy losses and lead to short positions.
Operational error or emotional influence: futures trading needs a cool head and rational decision-making. If you make a wrong operation decision because of chasing up and down, blindly following the trend or emotional fluctuation, it may lead to huge losses and increase the risk of short positions.
These are just some common situations, and the causes of the actual explosion may be more complicated and diverse. Therefore, in futures trading, investors should pay close attention to market dynamics, establish scientific and effective trading plans and risk management strategies, observe discipline, and reduce the risk of short positions. At the same time, it is best for novice investors to conduct actual trading after full study and simulation exercises to improve their trading skills and experience.
The main reasons for the surge in futures trading
① Improper post management.
The reason why many traders burst positions is not because futures theory learning and market control are not in place, but because they can't control positions. Many traders tend to invest the transaction amount completely according to their own preferences. When there is a big market, they like to invest in high positions, even all of them. However, the market is changeable, cruel and unpredictable. If the whole fund accounts for a very large proportion of the whole position, which exceeds the risk that the invested position can bear, there will be a short position as mentioned in the title.
2 emotional transactions.
There are many futures traders with the psychology of gamblers. Once a loss occurs, they will feel that the next judgment is in the right direction and want to get their money back in a short time. Therefore, a more radical jiacang will lead to a position that exceeds the risk that you can bear, leading to an explosion. There are also some investors who are very stubborn and firmly believe in their own market judgment, preferring to take orders rather than close their positions. When the market disagrees with their own judgment, they are finally trapped until the end of the day.
③ There is no trading plan.
In fact, the fundamental reason for short positions is that there is no trading plan of its own. A good trading plan can not only determine the expected income you pursue, but also form your own operating principles and a set of systematic trading theories. It can make you clear until you want something, instead of grabbing your beard and eyebrows. Let you have something to take. The sharp rise and fall of the market can easily make our traders lose their goals, which will inevitably lead to the loss of risk management ability. We will only worry about how much our account has lost, not how many cars we should park. Strict implementation of the trading plan will make investors change from passive to active, stop losses in time, and will not lead to short positions.
What is the ratio of short positions in futures?
The short position ratio of futures is generally 10%. However, some futures companies have done a good job in short positions, and some futures companies have a low proportion of short positions. Therefore, the proportion of futures short positions is calculated according to the percentage set by the exchange in the trading rules, and the proportion of futures short positions is generally 10%.
What was the cause of the explosion?
1, like heavy operation. Heavy position operation means that investors use excessive leverage ratio to open positions. Due to the implementation of the margin system in futures trading, investors only need to pay a certain proportion of the contract value as a margin to trade. This will amplify investors' income, but it will also amplify risks. If the market fluctuates violently, investors do not stop loss or add margin in time, which will easily lead to the risk of short margin.
2. No timely stop loss. Stop loss refers to setting a predetermined price level after opening a position, and automatically closing the position when the price reaches this level to avoid the loss from expanding. However, many investors didn't set a stop loss or didn't want to stop loss for their own reasons, so they were lucky and took the loss, which led to more and more losses and eventually broke the position.
3. Adjustment of margin ratio. Margin adjustment refers to the futures exchange raising or lowering the margin ratio according to market conditions and risk management needs. When the margin ratio is raised, investors need to increase the corresponding funds to maintain their original positions. If investors fail to add margin in time, it may lead to insufficient margin and the risk of short positions.
How to choose a good stock
Fundamental analysis is generally from the company's main business, product market, historical performance, return on net assets, cash flow, price-earnings ratio to analyze. For example, the stock price changes of listed companies are controlled by the company's main business, product market, historical performance and other factors to some extent. The company's main business, product market and historical performance have great influence on the stock, and they are closely related. The change of stock price also reflects the company's operating conditions to some extent.
1, ROE: indicates a company's ability to make money. Generally speaking, ROE can be used to measure the development speed of a listed company. The higher the data, the faster the company develops. The faster the development, the stronger the ability to make money.
2. P/E ratio: P/E ratio mainly represents the rationality of the company's valuation. P/E ratio is not as high as possible, nor is it as low as possible. Mainly depends on the industry in which the company is located. Companies in different industries have different criteria for judging the P/E ratio.
Technical analysis mainly includes K-line chart, moving average, KDJ, BOLL, RSI, etc.
1, K-line chart: In general, we will analyze the shape of the K-line chart to judge the changing trend of the stock price, and we can also see the strength of buyers and sellers from the K-line chart to analyze the development of the subsequent market.
2. moving average: mainly through the analysis of short-term and long-term moving averages, find buying points and selling points. Generally speaking, when the short-term moving average crosses the long-term moving average upward, this time is a buying point, and when the short-term moving average crosses the long-term moving average downward, it is a selling point.
In addition to fundamental and technical analysis, there is also news analysis. The main purpose of analyzing news is to let us pay attention to market hotspots, industries supported by the state and research reports of various brokers, and analyze the possibility of stock ups and downs through these news.