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Quick Tips on Position Locking and Unlocking
In the face of the complex market, traders with real money accounts increasingly consider locking positions when striving to reduce losses or maximize profits. A lock can be negative or positive. Let us have a look at them.To get more news about WikiFX, you can visit wikifx official website.
1. Negative lock
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Generally, traders will consider negatively locking their positions in two cases: 1) The market trend turns to be vague after one placed the order; 2) One didn‘t set the stop loss before trading. If the trader doesn’t hope to close the initial position, he or she has to negatively lock positions when the losses become critical, or when there emerges a possibility of forced closing of the positions by the broker.
To exit a lock is to close both the initial position and the locked position at the right time. If a trader never closes positions, there will be an interest payment for holding positions overnight as well as obstacles to subsequent trading. To find the best price level and the opportune timing is the most difficult thing, which has a direct bearing on the account status. The best option is to unlock in the places of supposed reversal when the market trend is definite.
2. Positive lock
Unlike the negative lock, the difference between the orders in this case will be the profit. Its better to take profits in time, because a buy brings a loss. Traders could open new positions after observing a clear trend. |
