How to set the stop loss of futures trading?
1, set the maximum loss rate.
Stop loss in time when the loss of a single variety or the whole fund reaches a certain proportion. There is no absolute standard for setting the proportion, which can be determined according to the individual risk tolerance of investors. Generally, the short-term control is within 5%, and the long-term control is around 10%.
If the stop loss setting is too large, the stop loss frequency will be low. Once a loss occurs, the amount of the loss will be relatively large. The greater the loss, the more difficult it is for investors to accept, so that they can't make up their minds to stop loss, and thus get deeper and deeper.
If the stop-loss setting is too small, the stop-loss frequency will be high, but the investor's stop-loss mentality will be more firm and may miss the opportunity. So the size of the stop loss needs to vary from person to person. Once the stop loss ratio is determined, don't change it frequently.
2. Hedge stop loss
Hedging stop loss is to choose two similar investment products to enter the market at the same time, buy more in one hand and short in the other, and set a stop loss point at the same time. When one of the losses reaches the stop loss point, close the position in time, and the other waits for profit.
3. Technical trailing stop
Technical traders with certain investment experience usually make stop-loss decisions with the help of various technical indicators. The common methods for setting stop loss points according to technical indicators are moving average method and K-line combination method. However, the technical indicators have a certain lag, and it is not recommended to operate when the market is shaken.
The above content is about how to set a stop loss in futures trading, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.