However, like all other trading strategies, spread trading also has risks. Among them, the biggest risk is that the price difference may change during the trading cycle, resulting in investors losing capital or missing income opportunities. In order to balance risks and benefits and set an appropriate risk control framework for spread trading, investors can take the following measures:
1. On the basis of full research and analysis, select appropriate counterparties to ensure sufficient market liquidity and depth.
2. Make a detailed trading plan, set a stop loss point and target income before trading, and follow these rules when trading.
3. Adopt an appropriate level of leverage to minimize the transaction risk and ensure that there is enough capital reserve to deal with potential losses.
4. Make use of technical analysis and fundamental analysis to adjust trading strategy in time to adapt to market changes.
In short, in order to balance the risks and benefits of spread trading, investors need to carefully consider and evaluate their trading risks and preferences, and combine specific market information and experience to formulate a trading plan that suits them.