Close Entry

In this article, We learn about "Close Entry ".Let's Go!

"Close Entry " is a trading strategy employed by traders who take a short position in a security or currency pair.

The phrase refers to the practice of closing out or covering short positions when a security's price approaches a predetermined level or target.

Traditionally, traders enter into short positions in anticipation or assumption that the price of a security will fall.

Based on their analysis, they set a target price for what they think the security is likely to achieve.

When the price of a security is "closer" to that target (i.e., closer to it), traders will "cover" their short position, which means they will buy back the security they originally sold.

By covering, their goal is to lock in profits before the price may rebound or reverse direction, eroding their earnings.

However, as with all trading strategies, there are risks with the “Close Method”. If the price does not reach the target but rises instead, the trader may lose money.

Therefore, when employing this strategy, it is important to use risk management techniques such as stop-loss orders to limit potential losses.

If you want to learn more foreign exchange trading knowledge, please click: Trading Education.

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