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Why do futures profits close their positions and become losses?
The loss of futures profits may be caused by slippage. The slip point of futures refers to the situation that there is a gap between the time when customers place orders and the actual transaction point, that is, the final transaction price becomes higher or lower.

The reasons for slipping mainly include:

1, pending orders are sold, which is a common reason. When the market accelerates, it is easy to trigger and cause slippage. In this case, the way to reduce the slip point is to lighten the position and set a more reasonable or suitable condition list.

2, the direct transaction price in the session, if there is a slippage in this situation, it is generally in the case of following the market; Small fluctuations rarely lead to slippage. In this case, rapid changes should be avoided when entering the market; Don't use market price or rival price, use queue price or limit price.

3. Failure to keep up with the service will lead to a decline. In futures trading, the order is sent to the dealer's server and then sent to the banking system for trading. Due to forwarding, network delay or system delay, the quotation may be partially distorted, and slippage is inevitable when the market is large.

4. Traders deliberately make mistakes. Foreign exchange trading is different from stock and futures trading, and it is a matchmaking transaction. In foreign exchange transactions, customers trade with banks through platforms, and banks trade with customers, and banks have net positions. By lowering the price relative to customers, both banks and traders will benefit. Therefore, we should choose a formal trading platform when trading.

How to avoid trading slippage?

1, to ensure the smooth use of mobile phone or computer hardware.

2. Futures companies should try to use mature mobile phone trading software. The other is to update the trading software to the latest version frequently. When doing computer transactions, try not to make a "simple version" of the system. Some functions of the simple version can't be turned on in order to improve the boot speed, but the running speed and stability are not as good as that of the "stable version" system. This can avoid the unstable state of the card machine during the transaction.

3. Ensure that your own network wifi is unblocked, and the trading gateway belongs to a futures company, so it is also important to choose a good futures company.

4. Investors choose market price, rival price, queuing price and limit price when placing an order. In order to avoid slippage when the market fluctuates violently, the market price and rival price are not adopted, but the queuing price or limit price is adopted.