The margin ratio is determined by the exchange, so the position ratio depends on the leverage ratio. Ignoring the difference between the settlement price and the closing price of futures on the same day, if we want to achieve the same yield as Man Cang stocks, taking Shanghai Copper as an example, 4% of the price limit needs 2.5 times leverage to achieve a return of 10%, with a position of 32.5% and a margin ratio of13%; According to the level of margin trading, if we continue to implement the price limit system, the position should reach 65%, that is, the change of total funds in a single day is 20%.
5%, 4% and 3% daily price limit
Equivalent to full margin trading (10%) leverage ratio of 2 2.5 3.3.
The leverage ratio equivalent to stock margin trading (20%) is 4 5 6.6.
Steady trading can use the first set of leverage ratio to determine the position, so that the fluctuation level of the total assets of the account is roughly the same as that of the current stock trading; Aggressive trading can use the second set of leverage ratio to determine the position, but the risk is obviously much greater. Especially in the event of a reverse gap, high positions will definitely suffer heavy losses.
The position control principle of futures trading in the world is derived from the actuarial comparison of stock trading. In actual transactions, some experts abide by the discipline of not exceeding 40% of positions, or strive for a transaction with three times the capital. Anything will do. I don't want to make huge profits in futures trading. I just want to get the same income as stocks in the rise, and I can take advantage of the trend to short in the fall. Avoid the problem that the domestic stock market can only be short.
The main purpose of position control is to avoid reverse clearance. As for daily trading, if it can be confirmed, the position can be appropriately increased, even close to Man Cang, but the position must be closed before the close, leaving only a safe position level overnight.