Lock position is an investment term, usually used for spot transactionsForeign exchange margin、Futures marginIn transaction.Lock position generally refers to that investors open new positions opposite to their original positions after buying and selling contracts when the market moves in the opposite direction to their own operations, also known asPair lock、Lock order, and even called it Butterfly Flying Together.There are generally two ways to lock positions, namely profit locking and loss locking.The so-called lock position generally means that investors open positions in the same amount but in opposite directions, so that no matter where the price moves, it will not makeProfit and loss of positionA method of increasing or decreasing again.
The so-called lock warehouse is actually another termHedging transactions, for leverforeign exchange marketFor beginners in foreign exchange trading, the fundamental reason for locking positions is that they do not want to lose too much in their positions, so they open another position in the opposite direction of their original position, which is called locking positions.
Margin for position locking
Lock and receive ordersbondSummativepercentageThe rate varies according to different account holders.Take 1/4 as an example, buy 1 lotLocal London GoldThe margin is US $1000, and the margin for selling one hand of local London gold is US $1000, that is, the margin for market lock position is US $(1000+1000) * 1/4=500, and the margin for weekend lock position is US $(2000+2000) * 1/4=1000.
Unlock
It needs to be unlocked after locking, and the original hold needs to be supplemented when unlockingWarehouse receiptThe margin limit of.For example, buy 1 lotLondon GoldThe margin is $1000. The margin for selling a hand of London gold is $1000. The margin for locking the position is $500 (assuming the margin ratio is 1/4).For example, one of the warehouse receiptsclose a position, the system will unlock.After unlocking, it is necessary to make up the margin amount of the open warehouse receipt, that is, increase the margin to 1000 dollars.
effect
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It mainly solves the inventory problem andPossibleThe reversal of the market so that the hands of the position in the best position, and spend the minimum price.
Inventory is mainly divided into inter cellregularityConsolidation.Large range irregular consolidation.
It is certain that any kind of one-way position will be tested in this consolidation.
Either your stop loss is large and the direction is correct, avoiding the two kinds of consolidation, and you will win in the end. On the contrary, if there is a reversal or big shock, you will suffer a lot of losses.
Either your stop loss is small, and no doubt you stop loss repeatedly during this period, resulting in heavy losses and disorientation.
Or you think that you will temporarily consolidate and withdraw from the sidelines, but at a relatively high point you dare not open up positions, let alone open down positions, and you will miss the opportunity in hesitation.
The above problems can be solved by locking the warehouseUnidirectionalBefore the market appears, your position is in the best position.And while locking in early profits, there are opportunities to expand your profits.Your profit will multiply when the one-way market appears.Your position is also in the best position when the reversal occurs.
One step ahead, one upmanship.And the only way to do this is to pay moreService Charge, and a little loss during operation in the disk.First of all, the main operation is to lock positions, and some large capital operations are to lock positions. From this point of view, locking positions is useful.Seen from the surface, the lock warehouse isStop winningA form of expression of.The form of lock-in is simple. One buy, one sell, and the two sides are equal, which is meaningless.Through its surface phenomenon, we should see more of its internal essence.
reason
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1. After trading, it is impossible to judge the future market development, so lock positions to obtain the time buffer effect of research and judgment.
2. The act of making a mistake in trading but making a judgment on the market situation, hoping to get a correction.
3. The act of trading correctly but judging the market situation in the hope of obtaining more profits.
4. Worst of all, it has nothing to do with the marketInsightsA kind of self deception that is unwilling to stop the loss and has illusions after the lossself-consolationThis is the type of behavior that most lock positions[1]。
mode
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There are generally two ways to lock positions, namely profit locking and loss locking.
profit
Profit locking means that the futures contracts bought and sold by investors have a certain rangeFloating profitInvestors feel that the original trend has not changed, but the market may fall back or rebound for a short time, and investors do not want to buy at a low price or sell at a high price easilyclose a position, while continuing to hold the original position, they open a new position in the opposite direction.
loss
Loss lock position means that the futures contract bought and sold by investors has a certain degree of floating loss, and investors can't see clearlyAftermarket, but they didn't want to turn the floating loss into the actual loss, so they continued to hold the original loss position while opening new positions in the opposite direction in an attempt to lock in the risk.
Main locking chamber
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Run retail investors
Retail investors in the market
If the major players control a certain amount of long and short positions in a contract, that is, they have locked positions, then the major playersCounterbalance positionIn the process of hedging, the price will fluctuate up and down, especially when hedging operations are consciously concentrated in a short period of time, which will make the volatility more intense.When a large number of short orders are hedged in a short period of time, the price will rise sharply;Conversely, hedge in a short timeMultiple ordersWill lead to a sharp drop in prices.This is what we have seenMung bean, coffeeNatural gum, rubber plate andRed beanWhy does it appear fromlimit downreachCeiling board, an important reason for the sharp and repeated shocks from the ceiling to the floor.In this case, no matter how much orEmptyThe majority of retail investors will be overwhelmed by the main bank run.
Cover shipment
Because the futures contract has a delivery period, its speculation is strongly constrained by time. When the futures contract is about to expire, the position level must be reduced to a certain range. Otherwise, a large number of firm offers will be delivered, whether for the bull who accepts the firm offer or transfers the firm offershort positionIt is a very difficult thing to do. Therefore,Both partiesThey all hope to reduce their positions in a way that is beneficial to them, but in fact, only the stronger party can realize their will.For example, many people want to ship at a high level, but a large number ofLong positionIt is a contradiction that out of the game is likely to cause the price to fall back.So how to solve this contradiction?If the main force of doing more isFinancial strengthThe relatively stronger party can have enough time to hypeForward contractPass onPair lockIn this bullish atmosphere, short positions that have no time to retreat will suffer“Price increase and quantity increase", so the long position just swallowed up the short position's stop loss order and was successfully out. Although this kind of lock position itself does not increase profits, it can effectively realize the shipment of profitable positions and consolidate the profits already obtained. This explains the situation of covering the long position shipment, and the method of covering the short position shipment is also the same.
Market development
When a main force has obtained a certain amount ofLong position(orShort position）After that, if we continue to increase unilateral positions, it is easy to cause the passive consequences of too large a position, which is difficult to get out of the game. In serious cases, we may even be mired in trouble;But if the main force breaks through the key price by means of knock on, it will lead to a one-sided view of technology, which will lead to a large number ofTailwind plate"When people gather firewood, the fire is high", which makes the price develop in one direction. At this time, the original position of the main force will benefit greatly, and at the same time, it can be safely out of the game.This method of "inducing" retail investors to follow the trend can really achieve the effect of "Tai Chi masters".By the time others understand, the main one-way position has left the market, leaving only a pair that can be hedged at any priceLock orderSo as to avoid risks.
Ready to Reverse
The development of futures market is subject tospot priceIt is impossible to develop to one side without restrictions, which makes the controlling party enjoy greater profits while also facing greatermarket risk 。So, while pushing up or down a certain contract, we should establish reverse positions on other contracts to achieve the purpose of insurance, which is commonly referred to asIntertemporal arbitrage。This can also be seen as an adaptation of lock position, that is, the lock in the same month has become a cross month lock, which not only avoids the profit limitation of lock position in the same month, but also helps to obtain reverse chips to prepare for position turnover.For example, in July and August 2000,DaliansoybeanMain force of control panelAt the same time of constantly depressing the price, we built long positions on contracts such as S101 and S105, and our positions increased rapidly. By the end of August, when the long fundraising was completed, the main force of the long players counterattacked on a large scale, resulting in the rapid rise of future pricesBull market。
Service Charge
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Many people think that locking the warehouse increases the service charge, but in fact it is not.If we don't want to leave the trading order forever, we canclose a position, and then buy and sell in the opposite direction, close the position after making profits, and collect the service charge for three times;We can also lock positions. When the trend is clear, the wrong one will be eliminated. When the profit is made, the right one will be eliminated, and the handling fee will also be charged for three times.
benefit
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Benefits of locking positions: locking losses, calming down your mood first, and using funds.
There are two kinds of lossesresolvent: Loss recognitionCut down a barn；Lock in losses.The best solution is not to lock the position (change if you know your mistake), but everything has both advantages and disadvantages. Locking the position is not necessarily a desirable method.
When the market moves in the opposite direction after the transaction, everyone will question their own judgment. In the process of market oscillation that they think they can withstand, there is no need to lock positions, because you cannot buy (sell) the lowest (high) price of the day, and it will also increase your unnecessary service fees.However, once the market breaks (falls below) the key point in the marketResistance level（support level）, we must stop loss (or lock position).The purpose of position locking is to calm you down and analyze the market trend from an objective perspective.
The third benefit of lock warehouse is mainly forMargin tradingSay, for example: you have $5000 and 1.0950 to selleuro1.1000 buy lock position, after the euro rose to 1.1080, it was unlocked by equalizing the euro purchased by 1.1000 (if it was aggressive, you could sell again, because when you unlock the lock, you judged that the euro would fall), so when the euro fell by 50 points, you can equalize the position of 1.0950 without loss (the handling fee was not calculated).However, if you do not have the courage to backhand after you cut your position at 1.1000 (mainlypsychological factorImpact), but there is no chance to make a profit.
