1. Understand the daily limit
*The limit refers to the range of the contract within a trading day from *** to the limit specified by the exchange, resulting in the contract being unable to continue**. The daily limit system is established to prevent excessive market volatility and maintain market stability. However, for investors, the limit limit may affect their trading strategy, especially when it is time to close a position.
Second, the reason why the limit cannot be closed
1.*Restrictions
The *limit causes the contract to reach the limit set by the exchange, and the investor is unable to sell the contract at a higher price or thus cannot close the position.
2.Liquidity issues
In the case of ** limit limit, the market trading volume may decrease, resulting in the trading needs of buyers and sellers cannot be satisfied, which will affect the liquidation operation of investors.
3.Market Risk
*The daily limit may mean that the market is volatile, and investors' judgment of the market trend may be biased, which will affect the closing operation.
3. Coping strategies
1.Risk control
In ** trading, stop loss and take profit points should be set in advance to control the trading risk. When the ** limit leads to the inability to close the position, investors can limit losses and protect profits through stop loss and take profit points.
2.Adjust your trading strategy
In the case of the ** limit limit, investors can consider adjusting their trading strategy. For example, risk hedging can be achieved through intertemporal arbitrage and cross-product arbitrage to reduce the risk exposure of a single contract.
3.Seek professional advice
In the face of complex market conditions such as the ** limit, investors can seek the advice and advice of professional investment consultants. Through the analysis and guidance of professionals, it helps investors to make more informed trading decisions.
4.Stay calm
In the event that the position cannot be closed due to the ** limit, investors should remain calm and avoid making overly impulsive trading decisions due to panic. After the market returns to normal, re-evaluate your investment strategy and make appropriate adjustments.
*The limit may cause investors to be unable to close their positions, but investors can effectively deal with this problem by controlling risks, adjusting trading strategies, seeking professional advice, and staying calm. In the first trading, continuous learning and accumulation of experience, improve their own trading level, in order to be invincible in the complex market environment.