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Why is it slow to close foreign exchange positions?

Why is it slow to close foreign exchange _ How to close foreign exchange

Why are we always slower than others in closing foreign exchange? Is there anything else we don't know about the operating skills of foreign exchange liquidation? The following is why it is slow to close foreign exchange positions brought by Xiaobian. I hope you like it.

Why is it slow to close foreign exchange positions

Many people think that opening positions is easier than closing positions. There are many ways to open positions, such as following the trend, breakthrough, channel and so on, but there is a lack of systematic analysis of closing positions. If it is a loss-making transaction, it is easy, because it will close the position when it hits the stop-loss point, but how to maximize the profit of a profitable transaction is more difficult. This paper discusses several liquidation strategies and their advantages and disadvantages. No method is perfect, and any method has its shortcomings. Understanding the shortcomings can better understand the actual trading system.

(1) The indicator analysis method may be widely used, such as closing positions when the express line crosses the slow line or the signal line crosses the reference value. Its advantage is that the closing price is technically based, reasonable and accurate, especially when there is a strong trend, it can often grasp most of the trends, but its shortcomings are equally obvious. Most technical indicators are lagging behind, so it is impossible to close positions in time and really maximize profits, and some indicators will not work when the market is consolidating. It may even turn a profitable transaction into a loss, so you must have a thorough understanding of the indicators used when using this method. The shortcomings of this method are sometimes inevitable, and trying to confirm with more indicators may not be the best solution.

(2) The easiest way may be to set a profit point, especially for conservative traders, setting a smaller target can often get what they want, but there must be a reasonable risk/reward ratio when trading. If the profit target is 2 or 3 points and the stop loss is 5 or 1 points, it will be very dangerous. If the stop loss is unreasonably close to match the smaller stop-win goal, it is likely to encounter the stop loss too early and lead to losses. It is better to have a certain basis for the number of take profit points rather than a random number. For example, according to the statistics of historical data and the average fluctuation points in trading hours, it is also a good strategy to level some positions when reaching the profit target, and move the stop loss to the open position, and then level the next target such as the remaining positions.

(3) Closing positions with moving stop loss is another common method. This method is also relatively simple, and ideal results are often obtained. However, to set the tracking points reasonably, it is not that the smaller the tracking points, the better. If you encounter a stop loss prematurely, you will not maximize the profit. On the contrary, you may sometimes turn a transaction that could have been profitable into a loss.

(4) Some people use the time closing method, for example, closing the position at the closing of a certain market, or closing the position before the publication of important data, or closing the position after trading for a period of time. The main purpose of this method is to avoid risks, and sometimes it doesn't even consider the profit and loss of the transaction at all, so it can not achieve the goal of maximizing profits at all, but it can effectively control risks.

(5) Closing positions at price is a method that some professional traders like to use, because it can better achieve the goal of maximizing profits. This method rarely uses technical indicators. In fact, it uses PriceAction, that is, it is necessary to determine the effective support/resistance level first, and then set the profit target at these prices, so it is quite reasonable, but if the support/resistance level is judged wrong, the goal of maximum profit will not be achieved. When judging, you can refer to the four-hour chart or sky chart, because the support/resistance level on the low-time chart may be meaningless in the high-time chart and is not really reasonable, so sometimes the transaction is already the highest and lowest level in the high-time chart.

Why is the foreign exchange payment so slow

The reasons for the slow foreign exchange payment are as follows:

1. There may be orders for closing positions when the payment is made, and the amount of the payment may account for the amount of the deposit, so it is impossible to complete the payment. Traders only need to apply for withdrawal after closing their positions;

2. The exhausted account must be an account bound by my ID card, and the third-party account cannot withdraw money, which investors should keep in mind. This aspect is also to ensure the safety of investors' own funds;

3. the last point is nothing more than an error in filling in the application for withdrawal, such as the common international bank code and bank card number, which will also be rejected. the owner needs to go back and fill it out properly.

what is the system of compulsory lightening

compulsory lightening refers to the fact that the exchange will automatically match the outstanding closing orders declared at the daily limit price with the profitable investors of the net positions of the contract according to the proportion of positions. If the same investor holds two-way positions, the closing declaration of the net position will participate in the calculation of forced lightening, and the other closing declarations will be automatically hedged with their locked positions.

specifically, for the Shanghai and Shenzhen 3 stock index futures, the compulsory lightening system refers to automatically matching all positions that have been declared in the trading system as unable to be closed at the daily limit price, and the net position loss per unit of the investor's contract is greater than or equal to 1% of the settlement price of the day, with the investors whose net position profit of the contract is greater than zero according to the position ratio. The price of compulsory lightening is the stop price of the contract day. The economic losses caused by the above lightening shall be borne by the members and their investors. The trading margin will return to the normal level at the time of settlement on the day of compulsory lightening, and the price limit of the contract will be implemented according to the contract specifications on the next trading day.

Is there any profit from closing a stock?

Closing a stock refers to the behavior that investors manipulate the sale of some stocks. Whether it is a loss or a gain after closing a stock depends on the investor's position cost, closing formalities fee and closing price, that is, when the closing price is higher than the position cost, and the profit brought by the price difference can make up for the formalities fee, it is money-making; conversely, when the closing price is lower than the position cost, it is money-losing.

For example, if the cost price of a stock held by an investor is 9 yuan, and the number of shares held is 4, shares, and it is sold when the stock price is 1 yuan, and the selling procedure fee is 5 yuan, then the investor's income after closing the stock is = 4,× (1-9)-5 = 3,95 yuan.

in case of forced liquidation or short position, losses will be incurred, which are generally presented in margin financing and securities lending accounts, that is, investors borrow funds to trade stocks or borrow securities and then sell them. Securities companies will set a liquidation line for danger reasons. When investors touch the liquidation line with losses and do not add margin, securities companies will forcibly close their positions.

what are the types of foreign exchange pending orders?

buystop: buy a stop loss, pay a bill above the current price, and break through chasing more, that is, pending orders chase up above the current price; Sellstop: sell stop loss, that is, put a sell order below the current price, breaking through the short pursuit, that is, buylimit, put a bill below the current price, and do more on dips, that is, buy a sell order below the current price, selllimit, put a sell order above the current price, and short on rallies, that is, put a sell order above the current price.