It means that there are two kinds of lock positions, namely profit lock positions and loss lock positions. Profit lock-in means that there is a certain floating profit after trading, and a new position is opened in the opposite direction without closing the position. Loss-locking means that there is a floating loss after trading, and if you don't want to turn the floating loss into an actual loss, you will continue to hold the original loss position and open a new position in the opposite direction in an attempt to lock in the risk.

the practice of countless traders has proved that locking positions is actually a stupid trading method, especially losing positions. A common fault that traders are prone to make is that they dare not face the reality of losses. Locking the warehouse is the expression of this mentality.

The disadvantage of locking the warehouse is that it takes up double the deposit, which reduces the efficiency of the use of funds and increases the investment cost. Another drawback is that it is "easy to knot but not easy to solve". Although the lock position has not converted the floating loss into the actual loss for the time being, in fact, the funds have been drawn away, but there is no investor's signature. More importantly, locking positions seriously affects the trading mentality. Because of the two-way position, there will be a certain psychological burden when releasing the position, and it is inevitable that you will be hesitant and confused. Sometimes, even if you bite your teeth and unlock the position, you will re-lock the position because you are worried that the loss of the position in the other direction will increase, and you will fall into a vicious circle of locking the position. Finally, in desperation, we had to close our positions at the same time and turn the floating losses into actual losses.

specifically, for example, an investor bought five copper futures contracts, but after the contracts were bought, the copper price kept falling. At this time, the investor has already suffered a lot of losses, but he still expects the market to turn over and hopes that the copper price will rise before selling. But he still had no confidence in the market, so he did the opposite, that is, short selling five copper futures contracts. Then at this time, his position is basically locked. No matter how the market changes, he will not make a profit or lose money.

but in reality, this approach is not desirable, and its function only makes investors feel better. When the market goes out of the big reverse of its own prediction, it is more appropriate to admit mistakes and leave. If you find a better time to enter the market again, then the operation will be more handy and flexible. Don't leave your position waiting there.