Futures term, also commonly used in foreign exchange margin trading and gold margin trading, generally refers to investors opening a new position opposite to the original position after buying and selling contracts, also known as locking in, locking out, and even euphemistically called butterfly Qi Fei. Locking is generally divided into two ways, namely profit locking and loss locking.

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.

Either stop loss is large, the direction is correct, avoid two kinds of consolidation, and finally win. On the other hand, if there is a reversal or a big shock, it will lose a lot.

Either the stop loss is very small, there is no doubt that the stop loss is repeated during this period, resulting in heavy losses and loss of direction.

Either think that temporarily consolidating and withdrawing from the wait-and-see, dare not open a position at a relatively high point, or even dare not open a position downward, and miss the opportunity in hesitation.

The above problems can be solved by locking the position. Before any one-way market appears, the position has been in the best position. Moreover, while locking in the previous profits, there is still an opportunity to expand profits. When a one-way market appears, profits will multiply. When the reverse market appears, the position is also in the best position.