Quota management is a kind of market risk management (mainly refers to commercial banks). In order to ensure that the market risk assumed is controlled within a reasonable range and the level of market risk matches its risk management ability and capital strength, quota management is an important means to control market risk. Banks should set market risk limits according to the market risk measurement methods adopted. Market risk limits can be allocated to different regions, business units and traders, and can also be subdivided by asset portfolio, financial instruments and risk categories. The department in charge of market risk management of the Bank shall monitor the compliance of market risk limits and report the excess to the management in a timely manner. Common market risk limits include trading limit, risk limit and stop loss limit.
Stop loss is to prevent short positions, so stop loss should be set. Take profit has limited the profit ceiling, why should we set take profit?
This is to allow you to lock in the gains you have made and not turn into losses when the situation changes. Are you satisfied with my answer?
Why is the set amount of take profit and stop loss inconsistent with the transaction amount?
It is possible that the big bill directly ate your bill. It should only make you profit, not lose money.
What do you mean by gold 12 10 empty, stop loss 12 16 and target 1 195?
This is done by traders. Gold is short at 12 10, and the stop loss is set at 12 16. It was sold when it rose to 12 16, so it only lost six points, and the target was 1 195. If you have been exposed to futures or something like that, you should be able to understand.
What does compulsory liquidation of spot trading mean?
Forced liquidation, also known as warehouse explosion, warehouse piercing and warehouse cutting, belongs to platform system control.
Risk means that when the risk rate reaches a certain value, the system will automatically force the liquidation, but the risk rate of different platforms is different. There are generally two platforms in China, 70% and 50%.
Risk rate = occupation margin/working capital (net capital)
Current equity (net capital value) = occupied margin+available margin. What don't you understand? (9 丶丶 0 丶 1 丶 8 丶 1 丶 9 200224) Got it!
Take crude oil as an example. As mentioned above, if the risk rate is lower than 50%, it will be forced to close the position. After the forced liquidation, the funds are not zero, but the original order occupies 50% of the deposit. Of course, if there are more than two orders, they will not be closed at once when they are strong, but will be closed gradually. Before closing, the risk rate is lower than 50%.
How to stop loss in futures?
Futures stop loss means that when the loss of futures investment reaches a predetermined amount, it will cut the position in time to avoid further loss. Its purpose is to limit the loss to a smaller range when the investment goes wrong.
Volatility and unpredictability are the most fundamental characteristics of the market, the basis of the existence of the market, and the causes of risks in trading. This is an unchangeable feature. There is never uncertainty in trading, and all analysis and prediction are just a possibility. The transaction based on this possibility is naturally uncertain, and the uncertain behavior must have measures to control its risk expansion, so it produces a stop loss.
The way and setting of futures stop loss:
1, stop loss and take profit with support level or pressure level, that is, buy and open positions at support level, take profit and close positions at pressure level, and stop loss below support level after buying, and vice versa. This is the most commonly used stop-loss and profit-taking method in futures trading, which is suitable for all trading strategies such as intraday, short-term, band and medium-long term. The premise of using this method is to judge the support and pressure comprehensively and accurately.
2. Using the amount of funds as a stop loss means clearly planning how many points to lose as a stop loss before each entry transaction. This is a good fund management method, but the premise is that traders must have a winning rate higher than 60%, and at the same time ensure that the total profit point is higher than the total stop loss point.
3. Stop loss with indicators. This indicator does not refer to the indicators provided by the software, such as RSI and MACD. Instead, it means that traders design their own indicators according to price, quantity, energy and time, and then trade according to their own indicators. When the indicator no longer has a trading signal, he immediately stops or quits trading.
4. Stop loss with time. This method is mainly used for intra-day ultra-short trading mode. Intra-day ultra-short mode refers to the trading mode in which traders hold positions for as few as a few seconds and as many as a few minutes in order to obtain the price difference of several or dozens points in a certain period or part. For this model, the trading principle is to make use of the influence of some factors, such as the influence of the external market, the breakthrough and false breakthrough of the support level and pressure level in the market, and the sudden news, to make a profit in the case of sudden and large fluctuations.
Will the futures software automatically close the position if the stop loss amount is set?
Generally speaking, yes, if the market is too fast, it may be skipped, but generally this situation is less.
Can the stop loss amount of the insurance stop loss clause be superimposed?
Different insurance products are different. You can call the insurance company you need to consult.
Fix the maximum foreign exchange loss, confirm the number of stop-loss points, and how to calculate the first-hand quantity.
Think before placing an order. More than one stop loss is generally placed below the support point, and the empty order is placed above the pressure point. The number of orders is one-seventh to one-tenth of your total funds.
How to choose a stop loss method
"technical position" stop loss
No matter whether investors enter the market based on fundamentals or technical aspects, as long as the current fundamentals or technical aspects are contrary to the entry, investors should stop and leave, which is the "technical" stop loss. Whether it is the "technology" of fundamentals or the "technology" of technical analysis, the caliber of entry and exit, especially stop loss, is definitely the same, but in the opposite direction.
The advantage of "technical position" stop loss is that it can better filter out most of the "clutter", whether this "clutter" comes from short-term changes in fundamentals (news) or floating losses caused by repeated short-term price fluctuations. Its disadvantage is that it is difficult to find a really good "technical position". For fundamental factors, the quantification of factor factors is a difficult problem, but for the "technical position" of technical analysis, the real long-short watershed is not easy to find out.
Fixed amount stop loss
Fixed-amount stop loss refers to the way to leave the market when the loss reaches the "fixed" amount recognized by investors-the proportion of the total amount of funds in the account.
The advantage of this stop loss method is that the loss of each investment is limited to a certain range in advance (plan), and there will be no major risk hidden danger of unwilling to stop loss after serious losses, and there will be no unfavorable situation of floating losses but holding positions, which will eventually lead to explosion or even wear positions.
However, this method also has some defects. If the market suddenly jumps sharply, it may instantly break through the fixed stop loss amount, resulting in the actual loss exceeding the plan. In addition, if the winning rate of investors' trading is too low, the overall trading will also lead to overall losses. This fixed stop loss method requires that the winning rate of investors should not be too low, and investors must try to avoid holding varieties that may have a big gap trend.
Fixed distance stop loss
Some investors take the average cost plus a fixed distance-price fluctuation range as a stop loss after trading a certain variety. The advantages of this stop loss are the same as above, but the disadvantages still exist. If the input positions (lots) are too large, the planned stop loss amount will also be enlarged, which is different from the above-mentioned fixed-amount stop loss method. The above-mentioned fixed stop loss method, if the number of hands invested is too small, will lead to a very large reverse price change before the stop loss.
This is actually unnecessary, because once the price fluctuates sharply in the opposite direction, it already means that the error is getting more and more serious, and investors don't have to wait until then to stop the loss. This requires investors to do a good job in position management and invest in the right position to achieve good results, but this is a difficult problem for investors. Another drawback is that if there is such a big gap, the actual stop loss amount will greatly exceed the planned stop loss amount.
Similarly, this stop-loss method also requires that the winning rate of investors should not be too low, otherwise the account as a whole will still be in a state of loss.
"No stop loss"
Some investors don't like stop loss, or some positions have no concept of stop loss at all. He adopted the strategy of "no stop loss". "No stop loss" also has advantages and disadvantages. When the market is in the process of large-scale oscillation, or the price that investors participate in is just maintained in the early stage of the development of the position direction, "no stop loss" can generally come out in a "profit" state. However, if the market is in a unilateral trend and the positions held by investors are opposite to the actual direction of the market, then this "no stop loss" will lead to major losses, even short positions or short positions.
In fact, the "non-stop" strategy is irrational and investors should not do so. In other words, stop loss is necessary and it should be an important part of the trading plan.
Moving stop loss
In some cases, the floating profits in investors' accounts will be withdrawn, and even the profits may be completely withdrawn. When the floating profit begins to recover, investors need to adopt the strategy of moving stop loss (stop profit), that is, they can fall back to a certain extent at the highest profit point-investors can refer to the corresponding information or technical position and adopt the strategy of moving stop loss (stop profit). This can better protect the fruits of victory and not turn from profit to loss.