Position control can be said to be a compulsory course in foreign exchange trading, which can greatly affect the profit and loss of investors in foreign exchange speculation. Foreign exchange speculation is able to control one’s own positions, so that it can increase profits when it is profitable, and reduce losses when it loses. How to control foreign exchange positions? The following will introduce investors to the control methods of foreign exchange positions.
The situation of liquidation during foreign exchange speculation is basically because the position is not well controlled, the heavy position is traded, and the liquidation finally occurs. Investors will often lose their money in the event of foreign exchange speculation. Therefore, investors must pay attention to the control of their positions when speculating in foreign exchange.
How much is the position control during foreign exchange speculation that is not considered a heavy position transaction? When the position in foreign exchange speculation accounts for about 5% to 10% of your total funds, this is the best position to open. For example, if you have a position of 1,000 USD, the maximum occupied margin for placing an order at this time is 100 USD, which is 0.1 lot. At this time, there is 900 USD left in the account. At least 900 points in the market can be resisted. So this It is a very reasonable position.
Some people may say that if this position is not profitable when it is profitable, this involves another aspect of position control, that is, the operation of adding and reducing positions.
The so-called increase and decrease of positions is to add more funds when the position is profitable, and have achieved more profit, and to reduce the position is to close the position in batches in the case of a loss of position to achieve the purpose of controlling risk. So how to increase and decrease positions?
To increase the position, you must use the positive pyramid method to increase the position when the account generates a floating profit. This principle must be observed in the transaction, that is, the account does not generate profit and does not increase the position, and each time the increase is higher than the previous increase The amount of funds occupied by the warehouse should be small, and the maximum increase in a transaction cannot exceed 3 times.
The lightening operation means that when the account loss reaches a 5% retracement ratio, all positions are closed at this time, and the short position is checked from the beginning to the end of the error in the transaction.
How to control foreign exchange positions? Above, Yuhui International Network briefly introduced position control methods for investors. Position control in foreign exchange speculation is a very advanced knowledge. Investors should improve their position management skills through continuous learning.