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What causes the losses in foreign exchange transactions?
In foreign exchange transactions, the formation of foreign exchange trading losses is nothing more than the following reasons:

1. Judging the wrong trend is, in layman's terms, looking in the wrong direction. After entering the market, the market did not go in the direction you expected, but directly rushed to your stop loss.

2. The set stop loss is unreasonable, too arbitrary, and does not follow all objective requirements. The exchange rate did not go directly in the expected direction, but killed a comeback to stop winning, but this comeback triggered a stop loss order.

3. The specific entrance position is not suitable. Although entering the market is a trend, no measures have been taken to avoid short-term highs. There is too much room for the market to go backwards, so that the stop loss is forced to be large. I hope the market will not fight back or fight back. If not, it is necessary to stop the loss in advance under the condition of excessive psychological pressure.

4. The stop-loss order was too far away, and it didn't follow the objective law of fluctuation and didn't consider most situations to pursue "home run". However, if the exchange rate fails to reach the expected stop loss level for various reasons, it will turn around and reverse the stop loss or hang in the air.