In fact, this is mainly because holding overnight futures is very risky. In the evening, when the domestic market is closed, the international futures market is still active. We can't accurately predict how volatile the market will be when we sleep.
And futures have margin trading amplification leverage. If the next day's opening gap or pull up, not to mention the "black swan" incident, the account futures margin is insufficient, and the loss after the short position is not comparable to the stock's rise and fall. For various reasons, traders prefer to do day trading.
Futures, whose English name is futures, is completely different from spot. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts based on some popular products such as cotton, soybeans and oil and financial assets such as stocks and bonds. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.
The delivery date of futures can be one week later, one month later, three months later or even one year later.
A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.
In fact, unlike T+ 1 trading, the futures market is T+0 trading, and it is sold on the same day. There is no rule that futures positions cannot be held overnight. Futures can be overnight.
There are also long-term investors in the futures market, and planned investors will choose to hold positions overnight.
Therefore, investors who want to hold positions overnight should pay attention to the following points:
1, the position direction should be consistent with the current trend.
Don't leave empty orders in the long market, and don't leave many orders in the short market! The futures market is cyclical. On the premise that the general trend is clear, let's see if the short-term trend is consistent with the long-term trend. If the trend of 15 minute Sunday, 1 hour cycle and daily line is long or short, the risk of holding positions overnight will be smaller.
2. Control the proportion of positions
Light warehouse holdings, remember not to Man Cang overnight positions. Even if traders predict the future trend, some extreme prices cannot be ruled out. Light warehouses can reduce unpredictable risks and losses.
3. Set stop loss and take profit.
After setting the stop loss, controlling the loss within our acceptable range can make us deal with it more calmly.
4, combined with technical analysis, short to find the pressure line, do more to find the support line.
Make sure that the price and trend before closing are favorable for your overnight position. Generally, overnight positions will only be considered if there is a certain profit. If the estimated trend is only a small profit, there is no need to make overnight orders.