Matters needing attention in spread trading of stock index futures What should be paid attention to in spread trading of stock index futures?
1, stop loss For the transactions with the characteristics of average spread recovery, we first add the sub-strategies of stop loss and exit, and we need to consider the corresponding market risks when constructing the spread trading strategy to ensure that our funds will not shrink significantly in the event of abnormal conditions. Different from arbitrage strategy, spread trading is a high-risk trading strategy. The specific stop loss level can be set by investors according to the selected strategy. 3. Accident handling. Spread trading will also face many emergencies, just like price trading. When these emergencies occur, such as sudden abnormal price difference, sudden increase in margin level, loss of liquidity of one or two contracts at the same time, forced liquidation or forced lightening of positions by the exchange, etc. If you don't plan ahead, you may be at a loss or delay trading opportunities. It should be noted that an accident that did not happen in the past does not mean that it will not happen in the future. Traders should always be vigilant. The accidents mentioned above definitely do not include all accidents that may occur in spread trading.