The above description may be somewhat abstract. For example, if the current Shanghai and Shenzhen 300 Index is 3,000 points, then the target amount of the first-hand Shanghai and Shenzhen 300 Index futures is 3,000 * 300 = 900,000 yuan. If the fund in your account is 900,000 yuan:
1, if you only make more orders, then you can adopt the strategy of "I won't close the position as long as you don't make money", no matter how much the index falls, because you know that the index can't fall to 0 (if the government falls, the RMB in your account will become waste paper even if you don't invest), and you can wait until it is higher than 3,000 to find a suitable position to make money.
2. If you make an empty order of 1, you can't adopt the above strategy, because it is possible for the index to rise from 3000 to 6000. Once it reaches 6000 points, your loss is 900 thousand, and you have lost all the funds in your account. In other words, the maximum reverse fluctuation range of short orders is unbearable for your account funds, so in this case, you have to consider setting a stop loss.
3. Do more than two hands, assuming that the margin is 654.38+100000 yuan/hand, then the maximum reverse fluctuation that an account with 900000 yuan can bear is 654.38+065.438+050 points. Then you have to analyze the possibility that the index will fall by 1 150 points. If you can't do this, then you can also adopt the strategy of "I won't close my position as long as I don't make money". If there is a certain possibility, then you have to consider what will make the index drop 1 150 a high probability event, so once this happens, you have to stop.
In reality, we should all consider the opportunity cost and time value of funds. Instead of waiting for profit with a loss list, it is better to realize the funds and participate in the next opportunity with a slight loss. Therefore, stop loss has become an important means of futures trading.
The word "stop loss" can't accurately express the meaning and value of this action. This action actually means that "the price fluctuation is beyond the range that my operation plan can bear" or "the possible loss caused by this transaction exceeds the maximum loss that my account or my principles can bear". I'm done! I quit! So it is more accurate to use "exit" instead of "stop loss".