What is Contract Trading?
Contract trading refers to agreements between buyers and sellers to exchange a specified quantity of an asset at a predetermined future time and price. These standardized contracts are:
- Regulated by exchanges
- Include predefined commodity types
- Specify execution timeframes and quantities
In essence, it's an agreement to conduct future transactions under set conditions.
Key Characteristics:
Financial derivative instrument: Unlike spot trading, users can:
- Buy long (speculating price increases)
- Sell short (speculating price decreases)
- 24/5 Market Access: Trading occurs continuously except during weekly settlements (Friday 16:00 UTC+8)
- Automated execution: Positions auto-close during final 10 minutes of delivery periods
Quantitative Trading Robot Features
Core Advantages:
Emotion-free decisions:
- Eliminates human emotional bias
- Prevents irrational choices during market extremes
Strategy validation:
- Backtesting capability via programmed historical analysis
- Quantifiable verification of trading logic
Precision execution:
- Automated order fulfillment
- Particularly effective for mid-low frequency strategies
System Architecture Components
| Role | Function |
|---|---|
| Expert Traders | Share strategies and execution experience |
| Followers | Automatically replicate expert trades |
| Risk Managers | Configure position parameters and alerts |
Implementation Benefits:
- One-click setup: Predefined risk parameters enable instant deployment
- Smart triggers: Automatic execution when market conditions meet user criteria
- Real-time adaptation: Dynamic response to changing market factors
Trading Rules Overview
Transaction Types:
Opening Positions:
- Long (Buy): Bullish market expectation
- Short (Sell): Bearish market outlook
Closing Positions:
- Sell to Close: Exits long positions
- Buy to Cover: Exits short positions
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FAQ Section
Q: How does contract trading differ from spot trading?
A: Contracts enable leveraged positions on future prices without requiring immediate asset ownership.
Q: What's the advantage of quantitative trading systems?
A: They remove emotional decision-making while enabling backtested strategy validation.
Q: Can beginners use these systems effectively?
A: Yes, through copy-trading features that replicate expert traders' positions.
Q: How often can I adjust my strategies?
A: Systems allow continuous optimization with real-time market data integration.
Q: What safeguards exist against extreme volatility?
A: Automatic stop-loss triggers and position size limitations protect against sudden moves.
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