Any trading market must have a set of rules and regulations. Because, any market, if it lacks the constraints of rules, will be in a mess. Of course, the same is true of futures trading. Only with a set of special rules can futures trading be carried out normally. So, what are the rules of futures trading?
In fact, futures trading rules have broad and narrow meanings. Broad futures trading rules include all laws, regulations, articles of association and rules of futures market management. Narrow futures trading rules only refer to the futures trading rules formulated by the futures exchange and approved by the state regulatory authorities, as well as various detailed rules, measures and regulations produced on this basis.
Each futures exchange shall formulate its own futures trading rules according to the relevant laws and regulations of the state. Trading rules should take the exchange as the center and clarify all trading norms. In fact, this is a contract between the exchange and futures investors.
So, what are the contents of futures trading rules? Futures trading rules should include opening, closing, quotation, closing, recording, closing, settlement and guarantee, delivery, dispute settlement and penalty for breach of contract. We should note that futures contracts are also an integral part of the rules. The purpose of formulating futures trading rules is to maintain normal trading order, protect equal competition, punish breach of contract, and stop unfair trading behaviors such as monopoly and market manipulation.
2. How to apply the homeopathic trading principle?
In futures trading, there are four basic trading principles, which are: follow the trend; Stop loss in time to minimize the loss; Maximize profits; Avoid risks. Among them, the most critical point is to use trends to trade. Below, we will mainly introduce the trading principle of futures.
Follow the trend. In other words, you have to trade in the direction of recent price fluctuations. According to experts' analysis, these price changes are related to the random fluctuation of the initial small trend. In other words, if you want to trade successfully, you must follow the trading principle of taking advantage of the trend.
In the long run, you can only make a profit if you keep pace with the fluctuation trend of commodity prices. Therefore, when the price shows an upward trend, you can only adopt the operation mode of buying, and when the price shows a downward trend. The strategy or operation you take can only be selling.
Although the important rules of trend trading are well known, there are not many futures traders who can abide by this rule in actual trading. Before the new trend is established, they always tend to buy at the extreme bottom or sell at the extreme top. But the truly winning traders have been waiting, and after confirming that a trend has been formed, they will create positions consistent with this trend.
The opposite of following the trend is forecasting, but almost all futures investors fall into this trap. These trapped investors have thought about futures trading and come to the conclusion that the road to success is to learn to predict the future trend of the market. Therefore, these people have also publicized their latest forecasts for the futures market. In fact, this is a trap. As a successful investor. There is no need to predict the market at all. What we can do is to conform to the market trend. If you are a long-term follow-up futures investor, you will find that the market really does not need to predict.
How to avoid the risk of futures trading
We should fully realize that futures investment, like stock investment, is also a high-profit and high-risk commodity investment. Therefore, in order to succeed in the futures investment market, we must first know how to reduce risks. Below, on the issue of reducing risks, I will give you some golden ideas to help you succeed in the futures investment market.
First, increase the deposit ratio.
Margin percentage refers to the percentage of the guaranteed amount to the total investment. Increasing the percentage of margin is equivalent to reducing the total investment, which can reduce the number of losses. However, after doing this, when you make money, your profit will be reduced accordingly.
Second, choose goods with small price fluctuations.
After observing the prices of futures commodities, we can find that the prices of some of them have increased greatly. These goods are suitable for short-term investment, which may make a big profit or a big loss. However, there are also some commodities with little price fluctuation, which are relatively stable investments, and the amount is relatively small whether making money or losing money. If you don't want to take too much risk, you can choose this commodity with relatively small price fluctuation. This is also a way to reduce risk.
Third, establish a stop loss.
The so-called stop loss means that when the price of the commodity you invest falls to a certain price and your loss reaches a certain proportion of the guaranteed amount, you should try to stop loss. The establishment of this stop loss system is sometimes necessary to ensure that you will not continue to lose money when your loss reaches a certain amount, which is also a way to avoid excessive risk.
Fourth, enrich your investment knowledge.
In order to avoid risks, we should enrich our knowledge of various commodities and the global economic market. To do this, we should not only refer to all kinds of financial information, but also care about current events at any time and cultivate keen observation. Because the futures market has changed a lot, if you can fully understand the impact of various current events on commodity prices and the entire investment market and cultivate sensitive resilience, as long as there is any trouble, you can accurately detect and prepare. This judgment plays a very important role in your investment decision.
Fifth, invest with money other than daily expenses.
For futures investment, a more appropriate method is that the source of investment funds must not affect daily life. In other words, the money used for investment must be the remaining money beyond the needs of daily life. The advantage of this is that even if there is a certain loss, it will not have much impact on our daily life.
Sixth, choose commodities related to your industry to invest.
Although there are many commodities to choose from in the futures market, as far as long-term investment is concerned, it is a good choice to accumulate practical experience to reduce risks. Moreover, it is best to choose products related to the industry you are engaged in. For example, people engaged in automobile sales can choose gasoline for investment, and people engaged in catering industry can choose agricultural products. In short, try to choose products that you are already familiar with as investment projects, even if there are other different kinds of choices, try to focus on similar products. According to their own professional information common sense, coupled with the accumulation of experience in the actual operation of this commodity, it is bound to cultivate personal unique observation and analysis ability of this commodity. In this way, the chances of investing correctly will increase.