Generally speaking, the more frequent and violent the price fluctuation of a commodity, the smaller the daily stop of the commodity futures contract, and the greater the price fluctuation.
This sentence is wrong. If you pay attention to the price limit system of commodity futures market, you will know that in the case of extreme market (the so-called extreme market means that the futures contract of this variety reaches the price limit for several consecutive days, but the number of consecutive days depends on the regulations of the relevant exchange), the daily price limit of futures will be adjusted and enlarged by the exchange. Therefore, this sentence is wrong. It should be normal to say that the more frequent and violent the fluctuation of commodity prices, the greater the daily stop loss of commodity futures contracts should be set, and vice versa.