The futures price limit is too high to open a position, but it is easy to close a position. Because there are many queues to pay the bill after buying, considering the bullish trend of subsequent futures, most people will not choose to close their positions, but continue to hold them. Empty orders are easy to open, but difficult to close. At this time, in order to prevent the loss from expanding the next day, try to buy.
When futures open short positions at the limit, they can only be entrusted pending orders, and pending orders cannot be closed. Empty orders are easy to close, and many people are waiting in line to sell, but at this time, considering that the direction will continue to decline, you can continue to hold empty orders. It is easy to make a deal by opening more orders, but it is easy to lose money the next day if you sell more orders in the market.
If you hold more than one order, it has reached the biggest loss of the day and it is difficult to close the position. It is easy to make a deal by opening more orders, but it is easy to lose money the next day if you sell more orders in the market.
Extended data
There are many reasons for compulsory liquidation in futures trading, such as failure to add trading margin in time, violation of trading position restrictions and other illegal acts, temporary changes in policies or trading rules.
In the standardized futures market, it is most common to be forced to close positions because of insufficient trading margin. In the course of trading, the futures exchange takes compulsory liquidation measures in accordance with the regulations, and the losses caused by liquidation shall be borne by the members or.