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What is a foreign exchange position

In foreign exchange trades, position points to investor actually namely the proportion of investment capital with real.For example, if you have 10,000 actual investment funds and you buy some foreign exchange with 3,000 yuan now, your position is 30%.If you buy all the forex with 10,000, you’re full, and if you sell all the forex you’re short.The position is divided into light warehouse, medium warehouse, heavy warehouse three ways, the difference between the three positions is the proportion of the deposit is different.

Position control in foreign exchange transactions can be divided into the following three situations:

First, homeopathic trading

In forex trading, the middle position can be retained, and other positions can be used as liquidity positions.Specific Settings can be adjusted according to the individual needs of investors.If investors pay attention to short-term operations, liquidity positions can be increased;If you pay attention to the middle line operation, liquidity position can be reduced.

Two, against the trend to do single

In foreign exchange trading countertrend to do single, before consolidation area breakthrough, investors need to take light arehouse operation, try not to carry out heavy warehouse operation, wait for the breakthrough after the appropriate increase in positions (can be added to the warehouse).Countertrend trades in, unless market direction produces apparent change, it is to do not have heavy storehouse operation opportunity otherwise.

Three, sideways potential trading

In foreign exchange trading, the overall position control is relatively strict. Before the consolidation area is broken, the re-position operation is not allowed. After the breakthrough, the position can be gradually increased.

In addition, it is necessary to establish a position before establishing a position in foreign exchange trading, and the control of position also starts from the position.Typically, it is best to limit the size of an investor’s position to less than 20% of their total funds to avoid blowouts.After the establishment of positions, investors need to add or reduce positions according to their own actual situation and market fluctuations.Position control in foreign exchange trading requires continuous accumulation of experience by investors