The disadvantage of locking warehouse is that it occupies double margin, reduces the efficiency of capital use and increases investment cost. Another drawback is that it is "easy to knot and difficult to solve". Although the lock warehouse has not converted the floating loss into the actual loss for the time being, in fact, the funds have been taken away, but there is no investor signature.
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.
More importantly, locking positions seriously affects the trading mentality. Because it is a two-way position, there will be a certain psychological burden when releasing the position, and there will inevitably be hesitation and confusion. Sometimes, even if the bullet unlocks the position, it will re-lock the position because it is worried that the loss of the position in the other direction will increase, and it 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.
Locking a warehouse is a harmful trading habit. If you want to succeed in the futures market, you must completely abandon the trap psychologically and in action. Once the operation is wrong, stop loss in time and find another opportunity.