(1) The loss of futures investment is within 5%, which is a normal fluctuation. As long as it is followed up in time, it is still in a floating loss. It is still timely to judge whether the market is following the trend of its own judgment. If not, you can choose to stop loss in time.
(2) The loss of futures investment exceeds 5%-20%. At this time, it is necessary to adjust the position and strategy in time to deal with the unfavorable situation. Either cut positions directly, choose new opportunities to enter the market and earn back the losses.
(3) 20%-50% of futures losses are serious losses. At this time, instead of adjusting your strategy immediately, you choose to stop immediately or choose to hedge. Because it is more than 20%-50%, it is often not easy to stop loss, so it is necessary to adopt a hedging strategy appropriately, but also according to its own capital situation.
(4) The futures loss is 50%- 100%, which is a serious loss. Stop loss immediately, do not hedge, and do not gamble in an attempt to recover losses. At this point, stop any operation immediately.
Legal basis: Regulations on the Administration of Futures Trading
Article 10 A futures exchange shall, in accordance with these Regulations and the provisions of the the State Council Futures Regulatory Authority, establish and improve various rules and regulations, strengthen the risk control of trading activities, and supervise and manage its members and exchange staff. A futures exchange shall perform the following duties: (1) Management system. A futures exchange that implements the member classified settlement system shall also establish and improve the settlement guarantee system.
Article 11 A futures exchange shall establish and improve the following risk management systems in accordance with the relevant provisions of the State: (1) Margin system. (2) Debt-free settlement system of the day; (3) price limit system; (four) the position limit and large position reporting system; (5) Risk reserve system; (6) Other risk management systems as stipulated by the the State Council Futures Regulatory Authority. A futures exchange that implements the member classified settlement system shall also establish and improve the settlement guarantee system.