The choice of closing point for foreign exchange transactions is a more important skill, and the choice of closing time will directly determine how much investors gain. But how to close a foreign exchange transaction? For investors, it is a problem. It’s too early to close the position and will automatically give up.
Market quotes. The exchange rate is likely to reverse if it is too late to close the position. Let’s take a look at the foreign exchange liquidation techniques.
- Generally, a stop loss must be set after opening a position. This is to control the risk within a preset range, and open and close positions with a tolerable loss when the price trend is unfavorable for the transaction.
- In the process of foreign exchange trading, if the market suddenly deviates from the direction it has determined to move drastically, far exceeding its recent fluctuations, immediately close the position.
- Because in the foreign exchange market, the opinions or psychological tendencies of most people often have a certain effect on price trends. If you feel that the latest financial news is wrong, then follow your own ideas, but you must Pay attention to closing positions when problems occur.
- Trailing stop loss is also a good strategy for closing positions, but it should be noted that the smaller the tracking points, the better, especially when the market is volatile, too small tracking points may cause the transaction to be closed prematurely , Produces unfavorable effects, so the tracking points should be set according to market fluctuations.
- You can use a take profit order to close a position, and you can close a part or all of the positions at the preset price. The take-profit level should be set based on the main resistance, support, or Fibonacci number.
- When the transaction has proceeded in a favorable direction (for example, a profit of 5 points has been made), the stop loss can be set to the opening price first, so as to ensure that the transaction will not lose.