Lock position generally means that after foreign exchange speculators buy and sell foreign exchange spot contracts, when the market trend is opposite to their own operation, they open a new position opposite to the original position, also known as locking or locking. . So can locking up a position lock in losses? Now the Huifantong website will explain to you whether hedging can lock in losses. Hedging is generally divided into two methods, namely profit locking and loss locking. "Profit lock-up" means that when the foreign exchange contract that an investor buys and sells has a certain degree of floating profit, the investor feels that the original general trend has not changed, but the market may experience a short-term decline or rebound, and the investor does not want to pay the original low price. Or if a high-price sell order is easily closed, a new position will be opened in the opposite direction while continuing to hold the original position. "Loss lock-up" means that the futures contracts bought and sold by investors have a certain degree of floating losses. Investors cannot see clearly the market outlook, but do not want to turn floating losses into actual losses, so they continue to hold the original losing position while going in the opposite direction. Open new positions in an attempt to lock in risk. Both of the above opening positions require new funds. So, is locking a position good or not? A large number of facts prove that this is just a negative protection measure against fool investors. These investors all have a common problem, that is, they dare not face the reality of losses, refuse to admit defeat, and often lock up positions. In fact, they are deceiving themselves and others. Not only are the losses not locked, but the losses get bigger and bigger. The disadvantage of lock-up is that it takes up double the margin, reduces the efficiency of capital use, and increases investment costs. Moreover, hedging is "easy to make but not easy to untie", especially hedging at a loss. Although the locked position has not converted floating losses into actual losses for the time being, the funds have actually been transferred away, but without the signature of the investor. More importantly, lock-up seriously affects the trading mentality. Since positions are held in both directions, investors will have a certain psychological burden when unwinding their positions. They will inevitably look forward and backward, be at a loss as to what to do, and often miss good opportunities to unwind their positions. Sometimes even if you bite the bullet and unwind your position, you will be locked up again if there is any slight disturbance because you are worried about the increase in losses from holding positions in the other direction, and you are not confident enough, completely falling into the vicious cycle of locking up. In the end, you may get angry and close your long and short positions at the same time. The floating losses will eventually turn into actual losses, and you will miss many investment opportunities that can turn defeat into victory. Obviously, hedging is a harmful trading habit. To succeed in the foreign exchange market, you must completely abandon hedging both mentally and physically. Once you make a mistake in your operation, you should stop the loss immediately and look for another opportunity. The online lectures of the University of Foreign Exchange are about to start, sign up to learn more about foreign exchange knowledge.