The concept of floating profit and loss is mainly embodied in the following two aspects:
1. Floating profit and loss of open contracts: In the margin trading markets such as futures and foreign exchange, investors can establish positions through buying and selling contracts. During the trading day, market price fluctuation will lead to changes in the floating profit and loss of open contracts. Suppose an investor buys a futures contract at a price of $65,438+000. When the market price rises to $65,438+065,438+00, the investor's floating profit is $65,438+00 ($65,438+065,438+00-$65,438). If the price falls to $90, the floating loss is 10 ($ 90- 100).
2. Floating profit and loss of shareholding: In the stock market, investors can open positions by buying stocks. With the fluctuation of stock price, the floating profit and loss of investors will also change. Suppose an investor buys a stock 1000 shares at the price of10 yuan/share. When the stock price rises to 12 yuan/share, the floating profit of investors is 2000 yuan (12 yuan/x 1000 shares); If the share price falls to 8 yuan/share, the floating loss is 2000 yuan (8 yuan/share x 1000 shares).
It should be noted that floating gains and losses only reflect the impact of market price fluctuations on investors' accounts, not actual gains and losses. Only when investors close open contracts or sell their stocks will floating gains and losses be converted into actual gains and losses. Therefore, investors should pay attention to market dynamics and adjust trading strategies in time to reduce the risks caused by floating profits and losses.