Lock position refers to an investment term, usually used in spot trading, foreign exchange margin, and futures margin trading. Lock-up generally means that after investors buy and sell contracts, when the market trend is opposite to their own operations, they open a new position opposite to the original position. It is also called lock-in, lock-up, or even euphemistically called butterflies flying together. Hedging is generally divided into two methods, namely profit locking and loss locking. The so-called lock-up generally refers to an operation method in which investors open positions of equal quantity but in opposite directions, so that no matter which direction the price moves, the profit or loss of the position will not increase or decrease.

It mainly solves the intraday consolidation problem and puts the position in hand in the best position in the possible reversal market, while spending the minimum cost.

Consolidation is mainly divided into regular consolidation between cells. Large ranges of irregular consolidation.

It is certain that any one-way position will be tested during this consolidation.

Either your stop loss is large, the direction is correct, and you avoid the two kinds of consolidation, you will ultimately win. Otherwise, if there is a reversal or a big shock, you will suffer a lot of losses.

Either your stop loss is small, and you will undoubtedly stop loss repeatedly during this period, resulting in heavy losses and loss of direction.

Either you think it is time to consolidate and exit the wait-and-see situation, but at a relatively high point you dare not open a rising position, let alone a falling position, and miss the opportunity in your hesitation.

The above problems can be solved by locking positions. Your positions are already in the best position before any one-way market trend occurs. And while locking in early profits, you also have the opportunity to expand your profits. Your profits will increase exponentially when one-way trends occur. Your position is always in the best position when a reversal occurs.

Be the first to gain the upper hand. All this is achieved is just a little extra handling fee and a little loss during the intraday operation. First of all, we need to lock positions for the main operations, and some large-capital operations need to be locked. Simply from this point of view, locking positions is useful. On the surface, hedging is a form of taking profit. The form of hedging is simple. One buy and one sell are equal, which seems meaningless. Through its superficial appearance, we should see more of its inner essence.