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HomeGoldHow can a novice fry gold to prevent liquidation?

How can a novice fry gold to prevent liquidation?

In the spot gold investment market, more and more investment customers will choose to invest in gold . “Margin call” and “forced liquidation” generally appear in margin trading.

Under what circumstances will a position be forcibly liquidated when speculating in gold ?

In the process of gold trading , the daily equity minus the position margin is the capital balance. If the equity of the day is less than the position margin, it means that the capital balance is negative, and it also means that the margin is insufficient. According to regulations, the futures brokerage company will notify the account owner to make up the margin before the market opens on the next trading day. This is known as a margin call.

Forced liquidation means that when the trading margin of a futures exchange member or client is insufficient and is not made up within the specified time, or when the member or client’s position exceeds the specified limit, or when the member or client violates the rules, the exchange will prevent risks. Further expansion, and the implementation of forced liquidation.

In spot gold trading, when the prepayment ratio in the trading account is equal to or lower than 30%, the trading platform will start to forcibly close the position from the transaction order with the largest loss amount until the prepayment ratio recovers to more than 30%.

How can a novice fry gold to prevent liquidation?

  1. Control positions

Beginners to fry gold to prevent liquidation experience Position control is very important for spot gold investment. Spot gold implements a margin system, and the leverage effect is generally 100 times. If investors hold excessive positions, as long as the price of gold fluctuates slightly, it may lead to the liquidation of investors’ gold trading accounts.

  1. Set stop loss

A stop loss price must be set for each order. Once the gold price touches the stop loss price, the stop loss transaction must be strictly executed.

  1. Mentality adjustment

A good investment mentality is a necessary condition for successful investors. Beginners in gold speculation to prevent liquidation experience. Whether you are investing in stocks or gold and foreign exchange, you are always inseparable from your mentality. When you invest, you must be calm. If you do it, you can only do it out of your own emotions, in order to see the market clearly and make the correct investment strategy. Being dominated by emotions, you can only make the wrong decision.

  1. Trend trading

The market has its own rules. If investors want to produce in the gold market for a long time, they must learn to follow the trend and never trade against the market trend. Investors can place orders after a small pullback trend entry.