CZL is an important indicator in futures trading, especially in speculative trading. If you have a clear understanding of the minimum decline, you can avoid being forced to close your position after the price falls below the minimum. Buying low and selling high can help us make profits in futures trading. Therefore, it is very helpful for investors to know CZL when trading futures.
CZL= (contract value × decline × lots) ÷ deposit. Among them, contract value, decline, lots and margin represent the value, minimum decline, trading lots and margin of futures contracts respectively. If we know these parameters, we can calculate the minimum price of futures contracts. This is very important for trading decisions. It can help us evaluate the risk of futures trading and decide the investment strategy.