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
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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.
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