The so-called lock position generally refers to an operation method in which futures traders open positions with the same amount but in opposite directions, so that the profit and loss of positions will not increase or decrease no matter where the futures price changes (or rises or falls).
Because unlocking is a very complicated project, and investors are inexperienced and unsure of the market judgment, they will hesitate, and the unlocking work will be delayed again and again, resulting in increasing transaction costs;
This transaction cost is not only an explicit cost, such as overnight interest and time cost, but also an invisible cost. For example, the continuous rise or fall of the market leads to the continuous expansion of the lock price, forming a lock between heaven and earth, making it more difficult to unlock and the lock time more distant.
Lock position refers to the investment term, which is usually used for spot trading, foreign exchange margin trading and futures margin trading. Lock positions generally refer to investors opening new positions that are opposite to the original positions after buying and selling contracts. It is also called lock positions, lock orders, and even euphemistically called Butterfly Qi Fei. Locking is generally divided into two ways, namely profit locking and loss locking. The so-called lock position generally refers to an operation method in which investors open positions with the same amount but in the opposite direction, so that the profit and loss of positions will not increase or decrease no matter where the price changes.
Lock-up operation skills in spot trading Lock-up refers to futures investors opening new positions opposite to their current positions and being locked up. The popular saying is that an investor has made many orders before, but now he has made an empty order. Lock positions are divided into profit lock positions and loss lock positions. Profit lock refers to when investors have profited from previous positions, but feel that the current price may fall back and open new positions in the opposite direction; Loss locking refers to the loss of investors in the current position, but they can't see the development of the market outlook. First, they should reverse their position and wait and see.
Before silver investors want to lock positions, they must first understand why they want to lock positions and what benefits they can get. Lock positions generally only lock profit orders, and losses only need stop loss.
The main purposes of locking positions are: when the market is consolidating or may reverse, you can keep your position profitable at the minimum cost, and when the market continues to develop according to your ideas, you can unlock your position immediately; But if the market does reverse, the fruits of victory will be preserved. This practice is nothing more than buying an insurance for yourself, and the price is just some handling fees.