What does digital currency lock mean
Generally speaking, it means that futures traders open positions in the same quantity but in the opposite direction. No matter where the futures price moves (or goes up or down), it will not increase or decrease the profit or loss of the position
use: do a good job in risk planning, do not take chances, no matter how many points you set up, you can solve it reasonably, choose the right point to make up for the loss, and turn the passive into the active
position locking is widely used in the futures market, because ordinary investors can carry out the two-way operation of short selling and short buying
specifically, for example, an investor bought five copper futures contracts, but after the contract was bought, the copper price kept falling. By this time, investors had made a big loss, but he also expected the market to turn around, hoping that the copper price would rise before selling. But he still had no confidence in the market, so he did the opposite, that is, short five copper futures contracts
at this time, his position is basically locked. No matter how the market changes, he will not make a profit
but in reality, this approach is not very desirable, and its role only makes investors feel better. When the market goes out of the big reverse of its own prediction, it is more appropriate to admit your mistake and leave the market. Found a better time to enter again, then the operation will be more handy, more flexible. Don't let your position wait there.
it mainly solves the problem of consolidation in the market and makes the position in hand in the best position in the possible reversal market, with the minimum cost
consolidation is mainly divided into inter cell regular consolidation. Large interval irregular consolidation
it is certain that any one-way position will be tested in this consolidation
either your stop loss is big, your direction is right, you avoid two kinds of consolidation, and you will win in the end. On the contrary, if there is a reversal or a big shock, you will suffer a big loss
either your stop loss is small, no doubt you stop loss repeatedly ring this period, resulting in heavy loss and loss of direction
either you think that you are temporarily consolidating and withdrawing from the wait-and-see, and you are afraid to open up the position at the relative high point, or you are afraid to open the position down, and you miss the good opportunity in hesitation
all the above problems can be solved by position locking. Before any one-way market appears, your position has been in the best position. At the same time, it also has the opportunity to expand your profit. When the one-way market appears, your profit will multiply. When the reversal occurs, your position is also in the best position
one step ahead, one up. And to do all this is just to pay more fees, and a little loss in the process of operation. First of all, the main operation is to lock the position, some big capital operation is to lock the position, simple from this point of view, lock the position is useful. On the surface, lock is a form of winning. The manifestation of lockup is simple, one buy and one sell, both sides are equal, it seems meaningless. Through its appearance, we should see more about its inner essence
after trading, we can't judge the future development, so we can lock the position to obtain the time buffer effect of research and judgment
the behavior of trading mistakes but judging the market situation, hoping to get correction
the behavior of trading correctly but judging the market situation in the hope of making more profits
the worst is the behavior of self deception and self consolation, which has no opinion on the market and is unwilling to stop losing money after losing money. Most of the lock ups are of this type.
a brief introction to lockup
(1) first of all, find out why lockup is necessary 2) What problems can be solved by lockaging 3) What's the benefit of lockup. In the state of loss is not lock, lock only lock profit. It is mainly to solve the problem of consolidation in the market and make the position in the hands of the best position in the possible reversal of the market, with the minimum cost. Consolidation is mainly divided into three parts 1) Regular consolidation among districts 2) Large interval irregular consolidation. It is certain that any one-way position will be tested in this consolidation. Either your stop loss is big, the direction is right, avoid two kinds of consolidation, and you will win in the end. On the contrary, if there is a reversal or a big shock, you will bear no small loss. Or your stop loss is small, no doubt ring this period repeated stop loss, heavy losses, lost direction. Or you think that the temporary consolidation out of the wait-and-see, and in the relative high you dare not open up the position, more do not feel open down the position. In hesitation, miss the opportunity Trading knowledge MACD. Org. Cn] all of the above problems can be solved by locking positions. Before any one-way market appears, your position has been in the best position. At the same time, it also has the opportunity to expand your profit. When the one-way market appears, your profit will multiply. When the reversal occurs, your position is also in the best position. One step ahead, one up. And to do all this is just to pay more hand fees, and a little loss in the process of disk operation I have a saying that; Spend a small amount of money to buy insurance for your position, maybe you can't spend it, but earn it.) pure one-way market is less, only one third of the total process. Originally, I didn't want to talk about the issue of lock in, but I'm afraid I can't explain it clearly.
now, I think it's necessary to correct everyone's understanding of lock in. First of all, the main operation is to lock the position, some big capital operation is to lock the position, simple from this point of view, lock the position is useful. We will certainly say that it is useful for the main force. What is the use for small and medium-sized retail investors? On the surface, lock is a form of winning. I think you will surely say that since it's just a stop win liquidation, why do you want to paint a snake and add to it? The manifestation of lockup is simple, one buy and one sell, both sides are equal, it seems meaningless. Through its appearance, we should see more about its inner essence. First of all, I declare that I have been operating with lockaging. Why can I say that lockaging is useful, and certainly very useful, because I am the beneficiary of lockaging.
Lock position, usually refers to the spot trading, foreign exchange margin, futures margin trading in an investment term
the so-called position locking generally means that investors make an equal number of open transactions in the opposite direction, so that no matter where the price changes will not make the position profit or loss, and then increase or decrease an operation method
lock in generally refers to investors opening a new position opposite to the original position when the market appears in the opposite direction of their own operation after the sales contract, also known as lock, lock list, or even the name of butterfly Shuangfei
the so-called lock in actually, another term is hedging. For the novice foreign exchange traders in the leveraged foreign exchange market, the most fundamental reason for lock is not to want to lose too much of their own positions, so open another position in the opposite direction according to their original positions, which is lock in the warehouse. Generally, there are two ways to lock the warehouse: profit locking and loss locking
reasons for position locking
1. It is impossible to judge the future development after trading, so position locking can obtain the time buffer effect of research and judgment
2. The behavior of trading error but judging the market situation, hoping to get correction
3. The behavior of trading correctly but judging the market situation, hoping to get more profits
The worst is the behavior of self deception and self consolation, which has no opinion on the market, and is unwilling to stop the loss after the loss. Most of the lock ups are of this type