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6.5 What are the stop-loss methods in futures trading?
First, the technical stop loss method. Technical stop-loss method refers to setting stop-loss on the basis of technical analysis, excluding the factors of random market fluctuation, and setting stop-loss orders in sensitive technical positions to avoid further expansion of losses. As can be seen from its meaning, the technical stop loss method needs the technical analysis ability and self-control of investors. There is no fixed model for technical stop loss method, because it is high in technology, so if it is done well, it can play a role of taking small bets and making big ones.

Second, the fixed stop loss method. Fixed stop loss method is the most commonly used and simplest stop loss method. Fixed stop loss method refers to setting the tolerable loss amount to a fixed proportion in the software, and quickly closing the position when the possibility of loss exceeds the proportion. The fixed stop loss method is generally suitable for investors who have just entered the market or investors in risky markets (such as futures markets). The fixed stop loss method is more mandatory, and investors do not need to rely too much on the judgment of the market. Correctly setting the stop loss ratio is a skill that every foreign exchange novice should learn.

Third, unconditional stop loss. Stop loss method without considering cost. When the fundamentals of the foreign exchange market take a turning point contrary to their expectations, investors should make a decisive decision without hesitation and throw it out at no cost to save money and fight again later, because the development trend is difficult to reverse.