Stop loss is an idea, a plan and an operation. In order to survive in the stock market, we need to understand the significance of futures stop loss and various technical problems. So, how much is the futures stop loss appropriate? Today, Bian Xiao compiled some stock-related knowledge for everyone. Let's have a look!

How much is the futures stop loss appropriate?

Stop loss point refers to the maximum allowable loss of a stock market trading position. Once the loss limit is reached, traders must close or reduce their positions to prevent the loss from expanding. Stop loss is a necessary means to control risks. How to make good use of stop-loss tools, investors should have their own style.

The setting of stop loss point mainly depends on your operation: short-term, middle-line and long-term. Stop loss setting should not be adjusted downward with the decline of stock price, as long as it falls below, it should come out immediately.

Generally speaking, the short-term setting is below 2% of the purchase price; The center line can be near 10%; The long line is wider, 30 to 50% will do. Remember that principles are principles, and if they are set, they must be implemented to create greater profits.

Futures take profit and stop loss setting

Because there are many trading softwares in futures, you can set them according to your own habits, but the best ratio of take profit and stop loss is 1: 2, that is to say, the price of take profit is twice that of stop loss, and the stop loss price should not exceed about 5% of the total funds, and it is best to be below 5% for novice traders.

If you have enough confidence in your trading model, you can also use the setting method of trailing stop loss, but the point cannot be set too large, otherwise it will be difficult to trigger. Futures trading is risky and can be long and short, but once the direction is reversed, there will be losses. Reminder: The stock market is risky, so be cautious when entering the market!

How to set stop loss and take profit points

Set the take profit point: the take profit point is set when the trend is stagflation and there is a downward trend; Set the stop loss point: For retail investors, the short-term stop loss point is generally set at 5%. If the risk tolerance is high, it can be set to the range of 5%- 10%.

But even if a stop loss point is set, it should be operated according to the specific situation of the stock. For retail investors, it is best to set the stop loss point conservatively, with less profit and relatively less loss.

Novice buy stop loss

Stop loss means that investors think that the stock price will rise in the future, but they are uncertain, so they can buy after judging the pressure level, so they set a stop loss order higher than the market price to buy. For example, the stock price is now in 8 yuan, and the pressure is in 9 yuan. It may fall or rise near the pressure level, but generally it will rise after 9 yuan breaks through the pressure level. At this time, investors can set a stop loss order near 9 yuan.

Selling stop loss is to predict the future price will fall, so set the selling stop loss order in advance. For example, after investors bought it on September 5th, the current share price is already at 1 1. At this time, in order not to let the earned money continue to float, a selling stop loss was set. The above two methods are often used in the futures market, that is, when futures open a position to buy a commodity contract, if the market is not rising, but falling, it is necessary to set a stop loss position to stop the liquidation transaction.