Can futures close their positions when they fall below the limit? Maybe someone will have such a question, what else can we do when futures fall? What kind of coping strategies do we have in the face of futures limit? Therefore, Bian Xiao specially brought you a futures daily limit. Can you close your position? I hope I can help you.
Can futures close their positions when they fall below the limit?
Futures trading limit can be closed, there are two ways of operation, one is hedging, and the other is forced closing. Hedging liquidation is a futures contract that has been bought or sold before selling or buying, which is more active. Forced liquidation refers to the operation of forced liquidation of a member or futures company to a customer by a futures exchange due to insufficient margin.
If the futures reach the daily limit, if the transaction can continue, then it is ok to close the position, but it is difficult. Futures trading restricts buying and opening positions, but it is difficult to sell peace positions, so it is necessary to treat the price limit reasonably.
In fact, the futures limit is not all bad. After all, some investors have made money, regardless of the fact that most investors have suffered big losses. And if the futures position is heavy, you can also open the position directly. For example, if a customer adds more oil, the account loss is even higher than the equity, which is extreme market risk.
What does closing futures mean?
It refers to the behavior of futures traders to buy or sell futures contracts with the same variety code, quantity and delivery month but opposite trading direction, and to close their positions. The liquidation can be divided into two situations: one is to liquidate multiple positions, that is, to liquidate multiple positions originally held, the original position was opened in Man Cang, and now the liquidation operation is also Man Cang; The second is to close the position, that is, to close the original short position. The original position was full, and now the liquidation operation is also full.
What if futures fall below the limit?
If it keeps falling, there is no way to close the position. I can only try to hang it on the daily limit to see if I can sell it. If not, we can only wait for the market to rebound. Once the futures daily limit board wants to open an empty order or close more orders, it needs to queue up. If the order is in front or the daily limit is opened, the transaction is completed. There is a lot of luck in this.
When investing in futures, investors must manage their positions well and never Man Cang. If the position is controlled at around 30%, the risk can still be controlled, even if they encounter a daily limit, they will not suffer heavy losses.
The decline in futures has a great impact on investors, and most users will choose to close their positions in time. In the futures market, after the futures limit, many orders can't be sold, so it is naturally difficult to buy new empty orders. Generally speaking, the risk of opening more than one order is relatively high, and it is likely to fall again the next day. If it is still falling after the close, the exchange will decide to adjust the range of the price limit according to market conditions.
After short selling futures, investors need to make a careful analysis. If it is the daily limit in the same direction for three consecutive trading days, you can negotiate to close the position at this time. Investors can directly work overtime to queue up for shipment in call auction on the next trading day. Usually, investors have the opportunity to close their positions on trading days.
For the investment market, the same is true near the stop-loss board. Investors should stay away from the daily limit or short the next day. In the case of market losses again or market losses, futures should adopt a reasonable stop loss method instead of locking positions. Generally speaking, if you place more orders, you can easily open the transaction list, but if there are more orders in the market, it will easily cause losses the next day.
The futures limit means that more investors are bearish on the market at this time, so investors can buy some after the futures limit to reduce losses. Generally speaking, if futures fall, there will be more empty orders in the market than in the market, and futures will continue to fall.
Futures are subject to the t+0 trading system, and investors can short or long in the market. Investors need to analyze according to the actual situation. In the futures market, investors must buy according to their own risk tolerance.