Definition of lock warehouse
Locking is actually to establish the same number of positions in the same futures variety, while "buy/sell" is in the opposite direction. At this time, no matter whether the market goes up or down, your funds will not change.
Some people say that locking positions is self-deception, because it is obvious that positions can be closed directly, why should reverse positions be established?
Old K also agrees with this statement, whether it is because the loss is unwilling to go out and lock the position, or because the profit is afraid of profit retreat, it is unnecessary. If the position is accurate, why lock the position? It is better to find an opportunity after closing the position.
However, Lao K still wants to tell you a secret. Old k had been unable to make a stable profit before, and finally spent that difficult period by locking the warehouse. Now the old K no longer locks the warehouse, but still do some simple lock analysis, hoping to help your transaction.
What's the difference between closing a position and locking a position?
In a word, it's different: the difference between locking a warehouse and closing it is that it must be unlocked again after locking it. (equivalent to forcing you to make another deal)
Real interpretation:
Taking the trend of Hang Seng Index in early trading today as an example, this paper introduces the difference between locking positions and closing positions. (Hang Seng Index HK$ 50 per point)
According to the locked transaction:
1, breaking through the early high of 28960 buyers.
2, MACD appears dead fork, 29220 sells one hand. (There may be a callback. Lock the warehouse and wait for the callback to unlock it.)
3, MACD low gold fork, bollinger band broke through the middle rail, 29 170 flat, making a profit of 50 points. (unlock)
4, MACD high dead fork, 29260 flat single, profit 300 points.
Open position transaction:
1, breaking through the early high of 28960 buyers.
2, MACD dead fork, 29220 flat multi-hand, profit 260 points.
3, MACD low gold fork, bollinger band breaks through the middle rail, 29 170 buys one hand.
4, MACD high dead fork, 29260 flat more than one, profit 90 points.
As can be seen from the two tables, closing positions and locking positions will not affect your profit and loss, and there is no essential difference between them.
However, if you choose to close your position instead of locking it, you can buy it at 29 170 and sell it at 29260, so you can not do this transaction.
Final suggestion:
1. The similarity between locking and closing is that subsequent market fluctuations will not affect your capital changes, but unlike closing, you need to unlock it after locking. From this point of view, locking the warehouse will not reduce any risks for you, on the contrary, it will increase new risks on the basis of the original risks, because unlocking is an extremely difficult operation under any circumstances.
2. Use of profit lock: Have you ever encountered a situation in which the general trend was judged correctly during the trading process, but was called back and washed out?
Good traders are forbidden to get their profits back. When the price moves to a key position, there will be a short-term callback signal. You can choose to lock the warehouse, unlock it after the callback is in place, and continue to hold positions in the original general trend direction. Why not simply choose to close the position and open the position after the callback is in place? I think you should often encounter indecision when you call back after closing your position, and you have not entered the market again and missed the next big wave. The essence of locking a warehouse is that you have to unlock it.
3. Usage of Stop-loss Locking: Have you ever encountered the experience of being stopped back and forth in the same interval during trading, or even being stopped by backhand after stop-loss?
When you lose money, choosing to lock the position instead of stop loss will often give you some time to calm down, adjust your mentality and re-examine the market trend.