Closing a position is a very crucial part of online foreign exchange investment . Today, I will talk with you about how to close a position in online foreign exchange , what it means to close a position in foreign exchange, and how to close a position in online foreign exchange speculation .
The basic elements of closing a position include: limit loss; flip profit. It is the basic element that investors should persevere in the actual operation of liquidation. This standard stipulates that when an investor suffers a loss in trading, and the loss has already reached the specified amount in advance, hedging the transaction immediately, accepting the loss and exiting the market; and when the market situation changes beneficially, there is no need to rush to close the position to make a profit, but to increase the number of positions as much as possible. sufficient time to obtain profits from beneficial changes in the sales market. Adhere to this standard, and set and execute profit and stock stop loss based on actual performance.
In the whole process of project investment in China’s gold futures, to limit the loss and to follow the profit standard, we should also pay attention to the risk of holding overnight positions. Due to the correlation of gold trading markets around the world, China’s gold futures sales market is highly uncertain, and the risk of overnight positions increases. Therefore, in the whole process of project investment in China’s gold futures, you should be proficient in the standard of limiting losses and turning profits.
Selection of Closing Opportunities
Combining the past work experience of commodity futures and the characteristics of gold futures itself, the selection of gold futures liquidation opportunities should pay attention to the following:
- When the futures price reaches the set stop loss level, be sure to close the position. The purpose of setting the stop-loss level is to control the loss within the scope that you can bear. “Winning or losing is a common thing in military affairs, and there are gains and losses.” Closing the position at the stop-loss level can
Preventing greater losses is also a key and main manifestation of implementing project investment organizational discipline, which can ensure that the sale and purchase plan is reasonably implemented under the premise that management decisions are appropriate.
- The overall goal of taking profit and stop loss is achieved. It is best to close the position on the same day to reduce the risk of holding positions overnight. It is based on the relevance of the gold trading markets around the world and the great uncertainty in my country’s gold futures.
- When you find that the reason for opening your own position is not established, you should close the position decisively. Investors have their own reasons for the whole process of opening a position, such as opening a position due to certain types of information or opening a position based on the logic of their own analysis. However, once it is found that the reason for opening a position is not established and there is no other sufficient reason to have it again, then the investor’s personal behavior of opening a position is unscientific, and the position should be closed under such circumstances.
- The change in the middle of the contract month should be closed as soon as possible. Initially, the minimum margin of gold futures contracts in China is 7%, but since the tenth trading margin of multiple delivery months, the margin will be increased to 10%. As the contract delivery date approaches, the margin ratio of gold futures will increase from 10% to 40%. % varies; secondly, the gold futures delivery implementation plan requires that general partner customer positions are not allowed to enter the delivery month. In the end, before the closing of the last stock trading time of the first month before the delivery month, the general partner customer’s gold futures contract position should be adjusted to 0 lots, otherwise the trading center will give mandatory liquidation. These requirements all require investors to transfer positions immediately in the middle of the month, and open contracts need to be deployed two months before the delivery month, seize the opportunity, and try to close the position 10 days before the delivery month to avoid Prevent the risks arising from the centralized liquidation of the sales market.