Investors will see the menu of floating profit and loss in their stock trading accounts, and they will also see this word in various financial articles. In fact, this is also the source of operations such as covering positions and lightening positions in the stock market. Although it is very common in the stock market, the meaning of floating profit and loss actually appeared in futures trading and is now introduced in the stock market.
Floating profit and loss is also the position profit and loss in futures, and the book profit and loss. The specific calculation is the potential profit and loss calculated based on the transaction price at the beginning of the position contract and the settlement price of the day. Futures is a margin transaction, which will settle the profit and loss every day to ensure the investor's margin. When there is a loss, you need to replenish the deposit. There are also accumulated floating gains and losses. To put it bluntly, floating profit and loss is an unrealized profit and loss, that is, the loss of open positions or unsold stocks. Many investors will cover their positions or wait for the stock price to rise again. Profit rate is the ratio of profit and loss to investment principal. The stock price is constantly changing during the trading time, so the profit and loss amount is also constantly changing, and there will be a saying of floating profit and loss. After selling, it is the actual loss.
What does floating profit and loss mean? Compared with what we have learned here, the profit-loss ratio in the above figure is 100% because this stock continues to fall under the condition of being quilted. In order to ensure that their losses will not continue to increase, it is possible to reduce their holdings, raise their costs and reduce their own shares, so as to make up their positions and reduce their costs after falling. At this point, we can also see the necessity of warehouse operation. It is best to keep the funds after selling, and there may not be a chance to make up the position after buying other stocks.