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What is lightening the position?
What is lightening the position?

After buying coins, ① the price of coins fell, and investors sold coins at low prices to avoid expanding losses; They sell coins at low prices for the purpose of capital turnover. This kind of investment behavior is called lightening the position, also called cutting the meat to stop the loss.

Cutting positions is a flat stop-loss measure to prevent excessive losses after opening positions or when the positions held are opposite to the exchange rate. Lightening positions is the first skill that foreign exchange investors must learn. Finally, the loss is still nominal. Once the position is closed, the loss will become a reality. From experience, lightening positions will cause mental stress to investors. Any feeling of winning by luck, waiting for the exchange rate to return or refusing to admit defeat will hinder the determination to lighten up the position and may incur serious losses. It must be strictly observed.