Slip point refers to a trading phenomenon in which there are differences between the designated trading point and the actual trading point when investors place an order.
In stock, futures and foreign exchange trading, every investor may encounter a slippery point. Due to the unique way of order delivery and processing in the foreign exchange trading market, the result of slippage may be good or bad. For example, when the final execution price is better than the customer's expected price, it is a positive sliding point; And if the final execution price is worse than the customer's expected price, it is a reverse slip point.
Generally speaking, the sharp fluctuation of market conditions, the black-box operation of traders, the delay of network services and other reasons may lead to slippage. Therefore, it is suggested that everyone should learn to choose a formal and powerful foreign exchange trading service platform; Improve your computer configuration and network speed; Analyze and summarize the laws in time to avoid the period of sharp fluctuations in market conditions. At the same time, we should also correct the trading mentality.
2) location
Open position is a word often used in financial industry (such as stock, securities, futures trading, etc.). ), refers to the amount of funds owned by investors. A position is a market agreement, which promises to buy and sell the initial position of the contract, and the buyer of the contract is a long position; Those who sell contracts are all short sellers.
In foreign exchange transactions, "opening a position" means opening a position, that is, buying one currency and selling another currency at the same time. Choosing an appropriate exchange rate level and establishing a position when entering the market are prerequisites for the profitability of foreign exchange transactions. In addition, it is necessary to strengthen management after opening positions, pay close attention to account situation and market changes in time, and improve risk prevention and control capabilities.
3) Close the position
Foreign exchange liquidation refers to ending the currency bought before by selling the same currency. For example, if your local currency is US dollars and you sell US dollars to buy Japanese yen, this is called opening a position; When you choose the right time to sell these yen, it is to close the position.
Generally speaking, the whole process of foreign exchange trading can be divided into: opening positions, holding positions and closing positions. In practice, investors can manually close their positions according to their own wishes and conditions after predicting risks and analyzing the trend of currency prices; You can also set a stop loss in advance and automatically close the position.
In addition, there is a way of compulsory liquidation. Under the current financial technology trend, some new Internet foreign exchange trading service platforms will use intelligent means and professional risk prevention and control mechanisms to intelligently calculate that the losses of investors' accounts exceed a certain proportion of their holdings, and then carry out forced liquidation to help customers reduce trading losses; Of course, investors may be forced to close their positions if they violate the position limit and exceed the position or the account margin is insufficient.