2. At present, some domestic trading systems can provide two kinds of stop loss orders: market stop loss and limit stop loss. Market stop loss means that as soon as the market price touches the preset stop loss price, a stop loss order is issued at the market price; Limit stop loss means that as soon as the market price touches the preset stop loss price, the commission will be sent at the limit price. Market stop-loss orders can ensure the success of stop-loss, while limit stop-loss orders can avoid unnecessary losses when prices are discontinuous. Both have their advantages and disadvantages.
3. Usually, market stop-loss orders are used for active varieties, and limit stop-loss orders are used for inactive varieties. This trading system helps investors to develop good stop-loss habits, thus avoiding risks in the market, minimizing losses, turning passivity into initiative and being invincible in the futures market.
4. How to correctly understand the uncertainty of stop-loss market and the fluctuation of price determine that stop-loss is often wrong. In fact, in every transaction, we are not sure whether to stop loss. If the stop loss is right, we may be secretly pleased. If the stop loss is wrong, there will be not only the pain of reducing funds, but also the pain of being fooled. Psychological blow is the most unbearable pain for investors.