First of all, many of our investors have the concepts of risk and stop loss, and the stop loss price is the key price of the stop loss order. When this trading order is issued, the investor issues a conditional liquidation order for the original position. For example, Mr. Wang bought Shanghai Natural Rubber with a contract of 10 and 6 10, and the transaction price was 25,000 yuan/ton. After the transaction, the price changed. Considering Mr. Wang's own trading style and risk tolerance, he thinks that when the price drops to 24,200 yuan/ton, the market will break quickly. In order to avoid the loss caused by being caught off guard when placing an order at that time, he issued a liquidation order through the trading system and sold Shanghai Tianjiao 6 10 lot 10 lot at a price of 24,200 yuan/ton. When this order is issued, once the market hits 24200 or the price is lower than 24200, the order will be placed automatically at the first time.
Secondly, the effect of the stop order is very different from the existing trading order in China. Existing trading orders belong to order orders, that is, limit orders. The order requires that the trading conditions are that the buy order must be equal to or lower than the specified price, and the sell order must be equal to or higher than the specified price. According to this principle, if Mr. Wang's closing order in the above example is closed as a good price principle, then no matter whether the price at that time is 24800 or 25 100, it will be closed immediately at that time, and it will not have the effect of closing the position with stop loss at all; A stop-loss order is a conditionally triggered trading order. If a certain condition is not met, the order will not be closed according to the principle of good price. When the initial set conditions appear, the order will take precautions according to the principle of time priority. Therefore, when foreign futures were first introduced to China, one of the most basic tasks for each trader was to open a new warehouse receipt and at the same time reach the trading system under the stop-loss liquidation order.
In addition, the stop-loss order is essentially that the investor's trading order is temporarily stored in the trading system of the exchange. For investors, it reflects the effect and purpose of controlling risks in advance. In fact, investors' trading risk is often not without the concept of risk awareness and stop loss, but when they really reach the stop loss price, they do not implement the original stop loss plan measures, so they are lucky. After the stop loss order is issued, they can