Forex Rapid RebateForex Rapid Rebate

Analysis of the advantages and disadvantages of locking positions


Forex Rapid Rebate s rebateforexbrokergle earliest time from the futures, rebateforexfee later with the development of financial derivatives and applied to other products trading, in a period of time can be described as red-hot to the extreme lock single really refers to investors buying and selling futures contracts or other financial products, when the ForexRapidRebate appears and their operation of the opposite trend, open a new position opposite to the original position, also known as the lock, lock position lock single operation rebateforex now quite Popular, in many just entered the foreign exchange market investors will be considered a very good method in many of the foreign exchange trading platform is a lot of the wonders of the lock single and this function as a buy point lock single really have propaganda so good to use? In fact, it is cashback forex the following I give you a detailed introduction to the lock single What is a lock position Lock position generally refers to futures traders to do an equal number of open positions but in the opposite direction of the transaction, so that no matter where the futures price movement (or up or down) will not make the position gain or loss and then increase or decrease an operational method Lock position is a futures investor in the purchase and sale of futures contracts, when the market appears and their operation of the opposite trend, open a new position with the original Although this method seems cumbersome to those who strive for simple operations, and is not conducive to saving transaction costs to those who advocate open source and cost cutting, and is often counterproductive to most retail investors who want to avoid risk; however, this method is used for large futures investors, especially those with a controlling position, and has the merit of being a magic weapon. Reasons for locking positions 1. 2、Trading error but the market situation is judged in the hope that this can be used to correct the wrong behavior 3、Trading correct but the market situation is judged in the hope that this can be used to obtain more profit behavior 4、The worst, is no opinion of the market loss and unwilling to suspend the loss and have the illusion of a self-deception self-congratulation behavior, the vast majority of locked positions are of this type This is the type of lock position way lock position is generally divided into two ways, that is, profit lock position and loss lock position 1, profit lock position is the investor trading futures contracts have a certain margin of floating profits, the investor feels that the original trend has not changed, but the market may appear a short fall or rebound, the investor does not want the original low-priced buy orders or high-priced sell orders easily close positions, they will continue to hold the original position in the At the same time, the opposite direction to open a new position 2, loss lock position loss lock position is the investor trading futures contracts have a certain degree of floating losses, the investor can not see the market, but do not want to turn the floating losses into actual losses, they continue to hold the original loss position at the same time, the opposite direction to open a new position in an attempt to lock the risk lock position use 1, the use of lock position to squeeze retail investors if the main force of a large account in a contract control a A certain amount of long and short positions, that is, has been locked, then, the main large hedge positions in the process will cause price fluctuations, especially when the hedging operation is consciously concentrated in a shorter period of time, will make this fluctuation more intense when a large number of hedging short orders in a shorter period of time, it will lead to a sharp rise in prices; conversely, within a shorter period of time to hedge more orders will lead to a sharp fall in prices this We have seen the mung beans, coffee, gum, glue board and red beans why in one day will appear from the stop to the stop board, from the stop board to the stop board of the significant repeated oscillation of the important reason in this case, whether long or short retail investors will be unbearable trouble and all by the main squeeze 2, the use of locked positions to cover the shipments Because the futures contract has a delivery period and make its speculation by the time Strong constraints, in the futures contract is about to expire, the level of positions must be reduced to a certain range, otherwise, a large number of real delivery whether for the real long or short to take the real plate, is a very difficult thing, therefore, both long and short hope that in accordance with their own way to make the position down, but in fact, often only the greater strength of the party to achieve their will For example, people who are long want to ship at high levels, but a large number of long positions hedge out easily cause the price to fall, which is a contradiction, so how to solve this contradiction? If the main force is relatively strong capital strength of the party, you can have enough speculation time on the forward contract by way of the lock to push prices higher, in this bearish atmosphere conditions, there is no time to retreat the short will be subject to the price increase in the amount of hints and automatic stop loss, so the long position just swallowed the short stop loss plate and smoothly out of this lock position itself does not increase what profit, but can Effectively realize the profit position of the shipment, consolidate the vested profits here to cover the long shipment, cover the short shipment method is also the same 3, the use of locked positions to control the development of the market When a main force has made a certain number of long positions (or short positions), if you continue to increase the unilateral position to push the plate, it is easy to cause too large a position difficult to get out of the passive consequences, serious or even deep quagmire But if the main force with the knock on the way to break through the key price level, it will cause a technically one-sided view, thus triggering a large number of followers, the crowd of firewood high, so that the price to a direction, when the main force of the original position to profit, and at the same time can be safely out of this practice of inducing retail investors to follow the wind, can really achieve the effect of Tai Chi masters of the kind of borrowing force until others understand over when The main force of the one-way position has left the field, only any price can be hedged against the lock single, thus away from the risk 4, the use of lock position for the market reversal for the preparation of the development of the futures market to be subject to the constraints of the spot price, not unlimited to one side of the development, which makes the control of the party to enjoy greater profits at the same time, but also face greater market risk So, in pulling up or suppressing a contract at the same time, in This can also be seen as a variation of a lock position, i.e., the same month lock becomes a cross-month lock, which not only avoids the profit limitations of the same month lock position, but also facilitates the acquisition of reverse chips to prepare for the rollover of the position For example, in July and August 2000, the Dalian soybean control master continuously suppressed prices while building long positions in S101, S105 and other contracts. S105 and other contracts to build long positions, positions quickly increased, to the end of August to the end of the long absorption of chips, the main forces of the long counter-attack, so that the emergence of a sharp rise in the futures price of the rapid long quotes The benefits of locking positions The benefits of locking positions: (1) lock losses; (2) let their mood first calm down; (3) the use of funds When there is a loss there are two solutions: (A) recognize losses cut positions; (B) lock Losses do not lock the position is the best solution (to know the wrong), but there are pros and cons of everything, locking the position may not be a desirable method When the market moves in the opposite direction after the transaction, everyone will question their own judgment, in the process of market oscillation that they think they can afford, there is no need to lock the position processing, because you can not buy (sell) a day the lowest (high) price, and will also increase your unnecessary commission but And will also increase your unnecessary commission but, once the market breakthrough (fall below) the key resistance (support) in the market, you must stop loss (or lock position) The purpose of the lock position is to allow you to calm down and stand in an objective point of view to analyze the market trend from a new The third benefit of the lock position is mainly for margin trading, for example: you have $ 5000, 1.0950 to sell the euro 1.1000 Buy a lock position, in the euro rose to 1.1080 after the flat 1.1000 buy the euro unlocked (if the aggressive can throw again, because when you open the lock your judgment is that the euro will fall), so that when the euro fell 50 points you can close the 1.0950 position without loss (the commission is not calculated) and if you cut the position at 1.1000 may not have the courage to buy backhand (mainly the heart The benefits of locking positions The benefits of locking positions: (1) lock losses; (2) let their mood first calm down; (3) the use of funds When there is a loss there are two solutions: (A) admit losses and cut positions; (B) lock losses not lock positions is the best solution (know that mistakes are corrected), but there are pros and cons of everything, locking positions may not be a desirable When the market moves in the opposite direction after the transaction, everyone will question their own judgment, in the process of market oscillation that they think they can afford, there is no need to lock positions to deal with, because you can not buy (sell) a day of the lowest (high) price, and will also increase your unnecessary commission However, once the market breaks (fall below) the key resistance (support) in the market, it must be Stop loss (or lock position) lock position is to allow you to calm down and stand in an objective perspective from a new analysis of market trends lock position of the third benefit is mainly for margin trading, for example: you have $ 5,000, 1.0950 sell the euro 1.1000 buy lock position, in the euro rose to 1.1080 after the flat 1.1000 buy the euro unlocked (if the aggressive can be thrown again, because When you open the lock your judgment is that the euro will fall), so when the euro fell 50 points you can close the 1.0950 position without losing money (the commission is not calculated) and if you cut the position at 1.1000 may not have the courage to buy backhand (mainly the influence of the heart factor), but no opportunity to profit out of the game

Related recommendations