Profit taking or arbitrage is also called technical correction, also called technical adjustment. It refers to a trading behavior in which the holders of stock or futures contracts and option contracts actively change their positions after the market value changes and favorable prices appear, so that book profits can be converted into actual profits.
- Chinese name
- Profit taking
- Foreign name
- Profit Taking or Arbitrage
- Alias
- Technical correction
Example analysis of profit taking
For example, in futures market On November 3, 2002, if a trader bought 100 lots of 96.01 lots at 2600 yuan/ton Corn futures By December 11, 2002, the price of the futures had risen to 2700 yuan/ton account A floating profit of 100 yuan/ton appears on the. If the trader continues Position If the market price continues to rise, its floating profit level will further rise. However, if Xingqian goes down, its profits that could have been made may disappear. Then the trader will take Profit taking 、 close a position Out strategy. Profit taking often occurs in the market The market has reversed The period of. Generally speaking, when the market moves from bull market Convert to bear market When, it is often multi profit taking; When the market turns from a bear market to a bull market, it is often short side profit taking. For example, when the market price of the short contract held by a short seller falls, in order to protect the Book profit Will adopt the strategy of closing positions as soon as possible and transfer the book profits into Actual profit 。 Conversely, for Buy short In other words, the behavior direction is just opposite. futures market Profit taking often occurs on the market and investors are not sure about the market prospect, so they hope to take back the nominal profits or floating profits they have earned account And turn it into actual income. 
