There are many kinds of price orders in futures trading, and the ladder price order is one of them, which is adopted by many futures investors in practice. So what is the order of ladder prices in futures trading? Today we will introduce its concept.

I. Overview

What is the step price instruction? Refers to the order to gradually buy or sell a specified number of futures contracts within a specified price range. For example, when buying, the price drops step by step, and when selling, the price rises step by step.

What role does the ladder price order play? This kind of instruction can play the role of average buying price or selling price. Obviously, this method is more suitable for prudent investors.

As far as bulls are concerned, customers have to lower their buying prices one by one and raise their buying prices to a medium level on average, and so do bears, that is, raise their selling prices one by one and raise their selling prices to a medium level. This instruction can be used to execute multiple contracts at the same time and clinch a deal at the same price.

Second, for example

Suppose an investor buys three portions of wheat at the price of $7.95 in the month of 10, and the price drops by $0.02 each time. This means buying 1 wheat contract at the price of $7.54 per bushel in 1 October, and continuing to buy 1 wheat contract whenever the price drops by $0.02 until buying three1wheat futures contracts. Of course, the sales contract can also use this instruction.

The purpose of taking such instructions is to prevent losses caused by hasty actions. Of course, when using the step price order, we should try to reduce the number of buying or selling in stages, and should not delay for too long.

Seeing this, everyone should know the outline of the ladder price list in futures trading. Want to know more about investment knowledge, please pay attention to us!