How to win when futures buy up and buy down?
Hello, because futures trading adopts two-way trading system, allowing buying up and buying down, so as long as there is fluctuation and there is room for price difference, you can make money. For example, in a bullish trend, you can buy contracts at low prices and sell them at high prices to make money; On the contrary, in the short trend, the contract is sold at a high price and then bought back at a low price. Let's give an example. When coke futures rose from 2,400 yuan to 3,824 yuan, the spread was 1265-985 = 280 yuan, and the trading volume was100t. So if you do more, you will earn 280×100 = 28,000 yuan. On the other hand, shorting is the same. From 1265 yuan to 985 yuan, you also earn 28,000 yuan. Calculation formula of profit and loss: profit and loss = price difference × contract unit × position handling fee. As long as the closing price is higher than the opening price, it can be profitable, and the closing price is lower than the opening price when shorting.