Can you close your position in a few seconds when doing foreign exchange? For many people who are new to foreign exchange, the liquidation operation is not very familiar, and it is easy to be slower than others. The following is for you from Bian Xiao: Can you close your position in foreign exchange for a few seconds? I hope you like it.
Can you close your position in foreign exchange for a few seconds?
Foreign exchange trading is a high-risk investment activity, and sometimes complicated situations may always exist, so it is very important to know how to close the position. Closing a position refers to the process of clearing the held transactions before the end of foreign exchange transactions or after reaching the stop loss point or take profit point. The following will explain in detail how to close foreign exchange positions.
First of all, you need to know two main ways to close foreign exchange positions: manual closing and automatic closing. Manual liquidation means that you manually end the transaction you have already held, and automatic liquidation means stop loss or take profit. These two methods have their own advantages and disadvantages, depending on the situation.
Manual liquidation is a process in which foreign exchange investors end their transactions independently. After opening positions, foreign exchange traders can decide when to close positions according to market conditions in order to obtain maximum benefits. In the process of liquidation, investors can get the best income by choosing the right time and strategy according to their investment period. Manual liquidation requires investors to have sufficient investment knowledge and experience.
Unlike manual liquidation, automatic liquidation sets the take profit or stop loss operation at a suitable point. Once the market reaches the condition of stop loss or take profit, the transaction will automatically complete the liquidation process. Compared with manual liquidation, automatic liquidation is simpler and faster, and it can also protect investors' funds from unnecessary risks.
Understand liquidation
Hedging liquidation is a relatively free behavior. You can choose the timing of selling stocks independently, and when the stock trend meets market expectations, buy low and sell high to make a profit. In addition, you can also buy put contracts that have been sold by selling high and sucking low to earn the difference. And if the stock trend does not meet market expectations, we can effectively stop the loss by closing the position in time.
As the name implies, compulsory liquidation is a compulsory act. Because of the huge losses in our operation, whether we like it or not, we have to start compulsory liquidation, and futures trading adopts a leveraged trading system, so compulsory liquidation is also called short position.
How to settle foreign exchange transactions?
1. Open the transaction closing window: on the trading platform page, find the currently opened transaction and click the "Close" or "Close" button to open the transaction closing window.
2. Confirm the number of closed positions: in the transaction closing window, confirm the number of transactions to be closed. If there are multiple transactions, you can choose to close one or all of them.
3. Confirm the closing price: in the closing window, confirm the current market transaction price or manually enter the required closing price.
4. Confirm the liquidation direction: in the transaction liquidation window, confirm whether the liquidation direction is to buy or sell.
5. Confirm liquidation profit and loss: in the liquidation window, confirm the profit and loss of the current transaction to decide whether liquidation is needed immediately.
6. Click OK to close: After confirming that the above steps are correct, click OK to close or close the transaction to complete the closing operation.
Is it profitable to liquidate stocks?
Closing a position refers to the behavior of investors manipulating some stocks to sell. Whether they make a loss or gain after closing their positions depends on the investor's position cost, closing procedure cost and closing price, that is, when the closing price is higher than the position cost and the profit brought by the difference can make up for the procedure cost, they make money; on the contrary, when the closing price is lower than the position cost, they make a loss.
For example, if the cost of a stock held by an investor is 9 yuan, the number of shares held is 4,000, and it is sold at the share price of 10 yuan, and the selling procedure fee is 50 yuan, then the income of the investor after liquidation = 4,000× (10-9)-50 = 3,950 yuan.
If there is a forced liquidation or short position, it will lose money, usually in a margin account, that is, investors borrow money to buy stocks or borrow securities and then sell them. Securities companies will set a liquidation line to get out of danger. When investors touch the liquidation line and lose money without additional margin, the securities company will forcibly close the position.
Investment strategy to reduce the probability of forced liquidation
1, reasonably control your position, do a good job in buying light positions, and reserve enough funds to deal with the dangers caused by the opposite trend of the target, such as using pyramid position management method, funnel position management method, rectangular position management method and so on.
2. Keep track of changes in the market. When the market changes in the opposite direction, close the position in time, instead of staying put.
It should be noted that it is no longer mandatory for customers to keep the guarantee share of 130%. Members should carefully evaluate and negotiate the minimum guarantee share requirements with customers according to the conditions of the mall, the credit status of customers and the risk management ability of the company. When the customer's credit standing is good and the current shopping environment is good, the retained guarantee share may be lowered, that is,120%; When the customer's credit status is poor and the shopping environment is in a bear market, the retained guarantee share may be increased, that is, 150%.