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.

Another way of saying it is called hedging. For beginners who use leverage to trade in the foreign exchange market, the most fundamental reason for locking positions is that they don't want to lose too many positions, so they open another position in the opposite direction of the original position. This is the locked position.

Margin of locking position

The percentage of the order deposit charged by the lock warehouse to the total amount varies according to the account holder of the transaction. Taking 1/4 as an example, the margin for buying 1 lot of local Loco-London gold is 1000 yuan, and the margin for selling 1 lot of local Loco-London gold is 10000 yuan, that is, the market position margin is (1000+0000 yuan.

Locking is generally divided into two ways, namely profit locking and loss locking.

profit

Profit lock-in means that futures contracts bought and sold by investors have a certain floating profit. Investors feel that the original general trend has not changed, but the market may fall back or rebound briefly. Investors don't want to close the original low-priced orders or high-priced orders easily, so they continue to hold the original positions and open new positions in the opposite direction.

Have a deficit

Loss locking means that there is a certain degree of floating loss in futures contracts bought and sold by investors. Investors can't see the market outlook clearly, but they don't want to turn the floating loss into an actual loss, so they continue to hold the original loss position and open a new position in the opposite direction in an attempt to lock in the risk.