(I) Basic Principles of Closing Futures Hou Lixiong The basic principles of closing futures include: limiting losses; Rolling profit. This is the basic principle that investors should adhere to in the liquidation operation. This principle requires investors to hedge their losses immediately and give up and leave when the losses reach a predetermined amount; When the market changes are favorable, there is no need to rush to close the position and make profits, but we should try our best to extend the holding time and fully obtain the profits generated by the favorable market changes. Adhere to this principle, in practice, the setting and implementation of performance profit and stop loss. In the investment process of domestic gold futures, we should follow the principle of limiting losses and rolling profits, and pay attention to the risk of holding positions overnight. Due to the linkage of domestic and international gold markets, the domestic gold futures market fluctuates greatly, and the risk of holding positions overnight increases. Therefore, in the process of investing in domestic gold futures, we should flexibly apply the principles of limiting losses and rolling profits. The timing of liquidation is to combine the past experience of the futures market with the characteristics of gold futures. Pay attention to the following points when closing gold futures: 1. When the futures price reaches the set stop loss level, it must be closed. The purpose of setting a stop-loss position is to control the loss within the range that you can bear, "stay green and not afraid of burning without firewood". Closing the position at the stop loss can avoid greater losses, and it is also an important performance of implementing investment discipline, which can ensure the effective implementation of the trading plan on the premise of correct decision. 2. When the profit-taking goal is achieved, it is best to close the position on the same day to reduce the risk of holding positions overnight. This is based on the linkage of domestic and international gold markets and the large fluctuation of China gold futures. 3. when you find that the reason for opening a position is not valid, you should resolutely close the position. Investors have their own reasons in the process of opening positions, for example, because of a certain news or according to the logic of their own analysis. However, once it is found that the reason for opening the position is untenable and there is no other sufficient reason to continue holding it, then the investor's opening of the position itself is unreasonable, and in this case, the position should be closed. 4. The conversion between contract months should be ended as soon as possible. First of all, the minimum margin for domestic gold futures contracts is 7%, but the margin for the tenth transaction before the delivery month has been raised to 10%. As the contract delivery date approaches, the margin ratio of gold futures ranges from 10% to 40%. Secondly, the gold futures delivery rules stipulate that natural person customers are not allowed to enter the delivery month. Finally, before the closing of the last trading day of the first month before the delivery month, the gold futures contract positions of natural person customers should be adjusted to 0 lots, otherwise the exchange will force the liquidation. These regulations require investors to move their positions between months in time, and open contracts should be allocated two months before the delivery month, so as to seize the opportunity and try to close their positions 10 days before the delivery month to avoid the risks brought by centralized market closing.