How can you make money from contract trading?

1. Try to open a position after a sharp drop or a sharp rise.

2. Go long after a sharp decline and short after a sharp rise.

3. Try to choose a contract with a longer term, otherwise it may expire before the market comes. Even if you open a new position, it will either easily cause sunk costs, or the buying and holding costs will be increased.

4. Prepare sufficient margin.

5. During the validity period of the contract, you can also sell high and buy low. When you make a profit, you can level your position appropriately. If the loss is relatively large, you can make up for it. This can not only reduce costs but also increase the margin ratio, and it can be done with existing funds. .

6. Under the premise of sufficient margin and moderate position, as long as the favorable direction has not changed and the contract is still within the validity period, the best way is to let it rise and fall - lie down and play dead.

7. The biggest risk of a contract is that the margin is not enough to withstand the volatility and the position is liquidated; secondly, the remaining term is short and the future possibilities are lost, resulting in established losses; and thirdly, betting on the wrong direction, which is gone forever and there is no way to turn things around!