In futures trading, many people like to do short-term trading, but they often suffer a lot of losses. The reason is that many things are not understood and there are certain misunderstandings about short-term trading. Why do many people like to do short-term trading? On the one hand, the exchange profit is relatively fast, and the profitable part can be settled as soon as possible; on the other hand, it is to avoid excessive losses as much as possible. So, what do you need to pay attention to when doing short-term business?

As shown in the figure below, you can see that the upper right corner is the code of the futures product and the contract month. For example, Zheng Cotton 1901, the full name should be Zhengzhou Commodity Exchange No. 1 Cotton Futures 1901 Contract. The CF at the back is the cotton code, and 901 is the contract number. The sell below 14865 is the current sell order price, which is a sell order for 7 lots; the buy 14850 is the current buying price of cotton, which is a buy order for 39 lots. This position is the handicap. Through this information, we can see the current buying and selling price of cotton transactions and the corresponding lot size.

So how to read the handicap, or use the handicap to make transactions? For example, in the market above, the sell order is 7 lots and the buy order is 39 lots. If you want to sell a long order, it would be more advantageous to close it at 14865 at this time. And if you use the opponent's price, although the transaction speed is very fast, there is no need to do so. If you can queue up to complete the transaction, try to queue up to complete the transaction. After all, a few points are money, and there is still a lot accumulated over the years.

The transaction rule is: the matching transaction price of the exchange trading system is equal to the middle price among the buying price (bp), selling price (sp) and the previous transaction price (cp). That is: when bp≥sp≥cp, then: the latest transaction price=sp; bp≥cp≥sp, the latest transaction price=cp; cp≥bp≥sp, the latest transaction price=bp.

In terms of transaction sequence, the purchase and sale order of the transaction matching system is price priority and time priority. When the buying price is greater than or equal to the selling price, the transaction will be automatically matched. Price priority means that higher-price buy orders take precedence over lower-price buy orders, and lower-price sell orders take precedence over higher-price sell orders. Time priority means that if the buying and selling direction and price are the same, the one that declares first has priority over the one that declares later. The order is determined according to the time when the exchange system accepts the declarations. If a certain contract is traded at the price limit, the transaction matching principles are liquidation priority and time priority.

Suppose the buying price of cotton is 14850, the selling price is 14865, and the previous transaction price is 14855. According to the current situation, if you place a long order at 14855, your transaction position will be ranked in front of the 39 orders on the market; if you place a sell order at 14860, and the previous transaction price is 14865, then your sell order at 14860 will also be placed. Will be ranked in front of the 7-hand list. But in comparison, the latter situation is completely unnecessary. After all, 7-lot orders are not many, and it is possible that the orders you place will exceed this number. But if you want to close the deal quickly, it’s not a bad idea to be in front of 7 orders.

This method of making transactions based on the handicap requires relatively high quality of the trader himself. First of all, hand speed, reaction speed, Internet speed, etc. must keep up. In terms of hand speed, you need to click twice with the mouse to close it. Of course, some have settings that only require one click, but the prerequisite is that it needs to be selected. In this regard, using a small keyboard is better. Reaction speed requires continuous practice. You must be able to react quickly when you see the price. This situation requires traders to quickly decide where to place an order when you see the price. Especially when there is a price difference between a sell order and a buy order, this opportunity does not occur all the time, but it can still be seen frequently. Of course, sometimes the market fluctuates too fast, and it is difficult to keep up with the price selection. Therefore, some people will choose a price that is higher than the first price or a higher price than the second price. Of course, the price chosen at this time is the market price.

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