Lock-in, also known as lock-in, generally means that investors open new positions with the same or similar number as the original positions in the opposite direction, instead of closing the original positions.

For example, if you open five contracts of RB 18 10, and then open three contracts of RB 18 10, you will lock three contracts of RB 18 10.

Futures Locking: Generally speaking, it refers to an operation method in which futures traders open positions with the same amount but in opposite directions, so that the profit and loss of positions will not increase or decrease no matter where the futures price changes (up or down).

According to the handling fee regulations of the exchange, if some futures products such as iron ore, coke and coking coal are traded in the day, the handling fee for closing these products is obviously several times that of non-closing positions (the closing fee for stock index futures is 30 times that of opening positions, which is a bit scary), and the cost is slightly higher.

Therefore, in order to reduce the transaction cost, and investors are afraid of the risk of holding positions overnight, they can lock their positions and close their positions the next day. It not only locks in the profit and loss, but also reduces the transaction fee.

Extended data

Application of Lock Warehouse in Futures Trading

Lock trading has many applications in trading, and the most common usage scenarios are as follows:

1, close the position on the black day, and charge a high closing fee within the day, and lock the position to reduce the handling fee.

2. When you open a long position, but the price reaches the upper edge of the channel, you can use a semi-lock transaction to reduce the sharp retracement caused by the technical callback.

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