This question is very common, let’s explain it in detail.

1. The first principle of the contract order, the corresponding level of the position:

For example, if the maximum order volume of your contract position is 1 million U each time, then you need to set a level for yourself.

2. Setting of the corresponding level of the position:

Assuming that the volatility of your 4-hour order can reach about 20 points, you can buy 1 million U in batches after seeing the trend, or after confirming the trend in batches; while in the 30-minute order, the position can only be about 100,000 U. This operation is to ensure that the position matches the level.

3. The second principle is that the larger the position, the larger the stop loss:

Once the position is given, the stop loss should be relaxed accordingly, otherwise it will cause frequent stop losses. You can spread the cost and reduce risks by building positions in batches.

4. The third principle, profit and loss ratio:

Assume that at a certain point A, you are short, the target price is 62000, and the stop loss price is 66666. If you do not open a position at point A, but open positions at C and E respectively, the average cost is 64500, the stop loss is 2166, and the take profit is 2500.

The profit and loss ratio of this transaction is not very cost-effective, so you can use trading techniques to spread the cost in this channel to make this transaction more profitable.