The following measures can be taken to control risks in the contract market:
1. Fully understand the contract mechanism: be clear about the rules, fees, leverage, etc. to avoid unnecessary risks due to unfamiliarity.
2. Set a reasonable stop loss: Determine the stop loss price based on your risk tolerance and market conditions, and stop loss in time to avoid further losses.
3. Control leverage: Avoid using excessive leverage to prevent small fluctuations from causing huge losses.
4. Diversify your investments: Don’t focus on just one contract or asset. Diversification can reduce the impact of fluctuations in a single product.
5. Light-weight trading: Avoid excessive heavy positions and leave yourself room to deal with risks.
6. Pay attention to market trends: Keep abreast of market changes so as to adjust strategies in a timely manner.
7. Stay calm and rational: Don’t be swayed by emotions and avoid impulsive trading.
8. Regular evaluation and adjustment: Regularly review your trading behavior and risk status, and make necessary adjustments and improvements.
9. Develop a trading plan: including entry, exit, risk control and other aspects, and strictly implement it according to the plan.
10. Reserve reserve funds to deal with emergencies and possible losses.
