Locking positions is a trading method that many foreign exchange traders often take when they make a wrong order but don't cut their meat and close their positions. Lock order refers to going long and short in the same currency pair at the same time, so that the loss or profit is fixed in a small range. But this kind of transaction is not very desirable.

1. This method not only costs a high transaction cost (twice the spread), but also can't protect the account from the loss of spread amplification.

2. Lock traders to lock in profits or losses by placing orders in reverse, but if the spread is enlarged, it will have a negative impact on long and short orders. If the leverage is too large in such a transaction, the difference between high points may directly lead to short positions. To make matters worse, your closing price is often calculated according to the difference between the highest points, which is tantamount to adding insult to injury.

3. Especially in the case of insufficient net account value, if there is an upcoming big market time, the liquidity in the market will weaken, the price difference will expand, and the handling fees for multiple orders and empty orders will increase immediately, which will easily lead to empty orders. Therefore, don't think that locking the warehouse will fix the loss and it will not explode.

Therefore, locking orders is not a good way to lock in profits or losses, and closing positions is king. Lock orders will also be dangerous or even explode because of the enlarged price difference.