definition
In fact, the so-called locked position is another term, called hedging transaction. For beginners who use the leverage of the foreign exchange market to conduct foreign exchange transactions, the most fundamental reason for locking positions is that they don't want to lose too many positions, so they open another position in the opposite direction of the original position, which is locking positions.
Margin of locking position
The percentage of the order deposit charged by the lock warehouse to the total amount varies according to the account holder of the transaction. Taking 1/4 as an example, the margin for buying 1 lot of local Loco-London gold is 1000 yuan, and the margin for selling 1 lot of local Loco-London gold is 10000 yuan, that is, the market position margin is (1000+0000 yuan.
open
After locking the warehouse, you need to unlock it. When unlocking, you need to make up the deposit of the original position sheet. For example, the margin for buying 1 lot London gold is 1000 yuan, for selling 1 lot London gold is 1000 yuan, and for locking positions, the margin is 500 yuan (assuming the margin ratio is 1/4). If one of the positions is closed, the system will unlock it. After unlocking, you need to make up the margin for opening the position, that is, increase the margin to $65438 +0000.
function
Mainly solve the problem of intraday consolidation, so that the position in hand is in the best position in the possible reversal market, with the lowest cost.
Mergers are mainly divided into periodic mergers between communities. Large-scale irregular consolidation.
To be sure, any one-way position will be tested in this consolidation.
Either your stop loss is large, your direction is correct, you avoid two kinds of consolidation, and you will win in the end. On the contrary, if there is a reversal or big shock, you will lose a lot.
Either your stop loss is very small, there is no doubt that you will stop loss repeatedly during this period, resulting in heavy losses and disorientation.
Either you think that you will temporarily consolidate and withdraw from the wait-and-see, but at a relatively high point, you dare not open a rising position, let alone a falling position, and miss the opportunity in hesitation.
All the above problems can be solved by locking the position. Before any one-way market appears, your position is in the best position. And while locking in the previous profits, there is still a chance to expand your profits. When a one-way market appears, your profit will double. When the reverse market appears, your position is also in the best position.
One step ahead, one step ahead. What we have to do is to pay more fees and lose less during the operation. First of all, the main operation is warehouse locking, and some large capital operations are warehouse locking. From this perspective alone, locking the warehouse is useful. On the surface, locking positions is a form of winning. The form of locking warehouse is simple, and it is meaningless to buy and sell on both sides. Through its superficial phenomenon, we should see its inner essence.
cause
1, after the transaction, it is impossible to judge the development of the market outlook, and the lock position obtains the time buffer effect of judgment.
2. I made a mistake in the transaction, but made a judgment on the market situation, hoping to correct the wrong behavior.
3. The behavior of trading correctly, but judging the market situation, hoping to get more profits.
Worst of all, you don't want to stop loss after you have no opinion on the market and have illusions. This is an act of deceiving yourself and comforting yourself. Most positions are locked in this type.
way
Locking is generally divided into two ways, namely profit locking and loss locking.
profit
Profit lock-in means that futures contracts bought and sold by investors have a certain floating profit. Investors feel that the original general trend has not changed, but the market may fall back or rebound briefly. Investors don't want to close the original low-priced orders or high-priced orders easily, so they continue to hold the original positions and open new positions in the opposite direction.
Have a deficit
Loss locking means that there is a certain degree of floating loss in futures contracts bought and sold by investors. Investors can't see the market outlook clearly, but they don't want to turn the floating loss into an actual loss, so they continue to hold the original loss position and open a new position in the opposite direction in an attempt to lock in the risk.
Main lockbox
Run on retail investors
If the main force controls a certain number of long and short positions in a contract, that is, it has locked the positions, then the main force will cause price fluctuations in the process of hedging, especially when the hedging operation is consciously concentrated in a short period of time, which will make this fluctuation more intense. When a large number of empty orders are hedged in a short period of time, the price will rise sharply; On the contrary, hedging multiple orders in a short time will lead to a sharp drop in prices. This is the important reason why the mung beans, coffee, natural rubber, rubber board and red beans we see have experienced repeated shocks from daily limit to daily limit and from daily limit to daily limit in one day. In this case, whether retail investors are long or short, it will be unbearable and all of them will be run by the main force.
Underwriting shipment
Because futures contracts have delivery dates, their speculation is strongly limited by time. When the futures contract is about to expire, the position level must be reduced to a certain range. Otherwise, it is very difficult to deliver a large number of firm orders, whether it is to undertake long positions of firm orders or to sell short positions of firm orders. Therefore, both long and short sides hope to reduce their positions in a way that is beneficial to them, but in fact only the stronger side can realize their wishes. For example, people who are long want to ship at a high level, but a large number of bulls are hedged out, which is likely to cause the price to fall back. This is a contradiction. So how to solve this contradiction? If the main force of the bulls is the party with relatively strong financial strength, locking in the forward contract and having enough speculative time can push up the price. In this bullish atmosphere, short positions that are too late to retreat will be automatically stopped by the hint of "price increase and heavy volume", so the bulls just swallowed the short stop loss and went out smoothly. Although this kind of lock warehouse itself does not increase any profit, it can effectively realize the shipment of profitable positions and consolidate the vested profits. Here, we will explain the situation of long shipment, and the method of short shipment is the same.
market development
When a main force has obtained a certain number of long (or short) positions, if it continues to promote the market by increasing unilateral positions, it will easily lead to the passive consequences of being too big to get out, and even get into a quagmire. However, if the main force breaks through the key price by knocking, it will lead to one-sided technical views, which will lead to a large number of subsequent orders. "When people gather firewood, the flame is high, and the price will develop in one direction. At this time, the original position of the main force will benefit a lot, and it can also be safely out. This kind of "inducing" retail investors to follow suit can really achieve the effect of "Tai Chi Master". When others understand, the one-way position of the main force has left the market, leaving only lock orders that can be hedged at any price, thus staying away from risks.
Prepare for reversal
The development of the futures market is restricted by the spot price, and it is impossible to develop to one side indefinitely, which makes the controlling party face greater market risks while enjoying greater profits. Therefore, when a contract is pulled up or suppressed, it is called intertemporal arbitrage to establish a reverse position on other contracts to achieve the purpose of insurance. This can also be seen as a modification of the locked position, that is, the lock in the same month has become a cross-month lock, which not only avoids the profit restriction of the locked position in the same month, but also helps to obtain reverse chips and prepare for the position transfer. For example, in July and August of 2000, the main force of Dalian Bean Control continued to suppress the price, and at the same time established multiple orders on contracts such as S 10 1 S 105, and the positions increased rapidly. Until the end of August, the bulls made a big counterattack, and there was a rapid bull market in which futures prices rose sharply.
service charge
Many people think that locking the warehouse increases the handling fee, but it is not. If you don't want to bid farewell to the trading order forever, when the trend estimation is wrong, you can close the position, then trade in the opposite direction, and close the position after making a profit, and the handling fee will be charged three times; We can also lock the warehouse, make a mistake when the trend is clear, and make a mistake after the profit, and charge the same fee for three times.
profit
Advantages of locking positions: lock in losses, calm yourself down first and use funds.
When there is a loss, there are two solutions: recognizing the loss and reducing the position; Lock loss. Not locking the warehouse is the best solution, but everything has advantages and disadvantages, and locking the warehouse is not necessarily a desirable method.
When the market goes in the opposite direction after trading, everyone will question their own judgment. In the process of market oscillation that he thinks he can bear, there is no need to lock the position, because you can't buy (sell) a lowest (high) price of the day, and it will increase your unnecessary handling fee. However, once the market breaks through (falls below) the key resistance level (support level), it must stop (or lock). The purpose of locking positions is to calm you down and re-analyze the market trend from an objective perspective.
The third benefit of locking positions is mainly for margin trading. For example, if you have $5,000, you can sell 1. 1000 to lock the position, and then buy 1. 1000 after1.080. But if you lighten up at 1. 1000, you may not have the courage to buy backhand (mainly due to psychological factors), but you have no chance to make a profit.