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HomeGoldHow to prevent liquidation in gold investment?

How to prevent liquidation in gold investment?

Generally , gold speculation is a margin transaction. When the investor’s available margin ratio is lower than a certain ratio, the system will forcibly close the order, that is, liquidation.

When the market gold market changes greatly, if most of the funds in the investor’s margin account are occupied by the trading margin, and the trading direction is opposite to the market trend, due to the leverage effect of margin trading, it is easy to liquidate the position. . If the liquidation leads to a shortfall and is caused by the investor, the investor needs to make up the shortfall, otherwise he will face legal recourse.

Without stable investment, only by constantly encountering problems and solving problems can we hope to have a stable profit period. The market industry is ever-changing, and any financial investment behavior is the same. Naturally , gold investment cannot be avoided. In order to ensure stable profits, gold speculation should prevent liquidation in time, and should solve it in time when liquidation occurs. So how to fry gold to prevent liquidation?

  1. Reasonable control of positions

This is the first and foremost consideration. Only by rationalizing the position control can there be a chance of stable profit. Otherwise, the account will have a temporary profit immediately, and it will not be stable and lasting, and will eventually lead to a loss.

  1. Set a stop loss before entering the market

As a novice gold investor, you often have such experience. You see that most of your orders are profitable, but you still lose money in the end, so the importance of setting a stop loss is self-evident.

  1. Grasp the trend and follow the trend

Just like the financial market, the spot gold investment market is regulated, and investors should not be self-righteous. Be sure to make an order after sorting out and analyzing the fundamental news in the market and carefully certified.

  1. Control your mind

Doing any investment should have a good mentality, and it is very important to adjust the mentality in a timely and positive manner. Gold investment has been relatively peaceful, so keep a calm heart, you don’t need to do anything special, and you can make correct investment choices and deal with risks by getting rid of emotional control. Gold speculation cannot be dominated by emotions, otherwise it is not recommended to invest, and it is almost the same as a bystander.

The liquidation of gold investment is not accidental, let alone permanent. This situation occurs only after a combination of some basic conditions, but the solution is in your own hands, but prevention is better than solving it after it happens. When the gold investment market is turbulent, it may be the premise of liquidation. You should be alert and consider your own capital management.