There are two types of locking positions. The first is to lock in losses and prevent further losses. For example, if you buy soybeans for 2000 yuan, the result falls to 1.900. This is to avoid greater losses, so that you can sell the same amount of soybeans at this price, so that no matter how the market evolves, the losses will not expand.
The second is to lock in profits. For example, if you buy soybeans for 2000 yuan, it will rise to 2300 yuan. At this time, you are not sure about the market outlook. You can sell the same amount of soybeans at this price, thus locking in the vested profits.
Difference: Locking positions is an operation in the futures market, that is, opening multiple positions at the same time and at the same price to lock in your profit or loss in the futures market; Hedging is to use futures market and spot market to avoid risks.
Extended data:
Locking function:
Mainly solve the problem of intraday consolidation, so that the position in hand is in the best position in the possible reversal market, with the lowest cost.
Mergers are mainly divided into periodic mergers between communities. Large-scale irregular consolidation.
To be sure, any one-way position will be tested in this consolidation.
On the surface, locking positions is a form of winning. The form of locking warehouse is simple, and it is meaningless to buy and sell on both sides. Through its superficial phenomenon, we should see its inner essence.
1, after the transaction, it is impossible to judge the development of the market outlook, and the lock position obtains the time buffer effect of judgment.
2. I made a mistake in the transaction, but made a judgment on the market situation, hoping to correct the wrong behavior.
3. The behavior of trading correctly, but judging the market situation, hoping to get more profits.
Worst of all, you don't want to stop loss after you have no opinion on the market and have illusions. This is an act of deceiving yourself and comforting yourself. Most positions are locked in this type.
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