Futures have the leverage to expand margin trading. If the opening price jumps or rises the next day, the account futures margin is insufficient, which will cause great losses after the short position. Moreover, the international futures market is still active when the domestic market closes at night, which may bring great market fluctuations. So, how to reduce the risk of holding futures overnight?

How to reduce the risk of holding futures overnight?

1 Set stop loss and take profit

After setting the stop loss, you can control the loss within your acceptable range, that is to say, even if there is a loss at night, you can control it within a certain range.

2 control the proportion of positions

Light warehouse holdings, remember not to Man Cang overnight positions. Because the light warehouse can well reduce the risk of accidents and reduce losses.

3 the direction of holding positions should be consistent with the current trend.

The futures market is cyclical. On the premise that the general trend is clear, let's see if the short-term trend is consistent with the long-term trend. If the trend of 15 minute Sunday, 1 hour cycle and daily line is long or short, the risk of holding positions overnight will be smaller.

4 Combined with technical analysis

Determining the price and trend before closing is beneficial to your overnight position, shorting to find the pressure line and doing more to find the support line. Generally, overnight positions will only be considered if there is a certain profit. If the estimated trend is only a small profit, there is no need to make overnight orders.

The above is for everyone to sort out and analyze the precautions for holding four-point futures positions overnight. I hope this answer is helpful to everyone.