Crossovers are not the "best medicine" to solve the problem

A common method used by investors to solve the problem,In the case of being trapped in direct trading,Many investors are unwilling to stop losses,And choosing a crossover for the unpacking operation should be said that if used well,Cross selling operations can effectively reduce our holding costs,How to use cross trading operations to quickly unwind positions that have already been trapped and achieve the opposite effect if not used properly,How to avoid the risks brought by cross selling,Let's discuss this topic next:
The advantages of cross trading:
　　1Through cross trading, the trapped currency can be used as the local currency,Buy the strongest currency in the current market and operate through the band of cross selling,Make more and more local currency in hand,The natural holding cost will also be further reduced,Ultimately, it reaches a solution or even profitability.
　　2The fluctuation space of cross market prices is relatively large,Free trading between any currency,As long as you grasp it well,There are many opportunities to make money, and after cross selling profits,You can choose to return to your original home currency,You can also choose to return directly to the US dollar, which is very flexible.
3. The operation of cross selling is a direct buying and selling between two non US dollar currencies,And it doesn't need to be done in US dollars,This can reduce the point difference,Reduce transaction costs.
Everything has two sides,Crossroads also have inevitable disadvantages,If not used properly, it will cause new losses. The risks of cross trading are as follows:
　　1The biggest risk in cross trading is the significant increase in the US dollar, and the characteristic of linkage between non US currencies is very obvious,Once the US dollar rises strongly,All currencies will inevitably decline,In this way, the operation between intersections will become very difficult,And with the rise of the US dollar, it depreciates synchronously.
　　2Due to investors being less familiar with cross selling,So the likelihood of operational errors is high,It will also lead to more and more losses in cross selling,The degree of trapping has increased.
Based on the above analysis, we believe that,Investors must adhere to two principles when doing cross trading:One is in the context of a strong US dollar,Crossovers should be avoided,Stop loss immediately,This kind of loss is minimal;Secondly, in the context of significant fluctuations in the US dollar,We must resolutely stop cross trading,Adopting a direct trading band for self rescue is more effective than a cross trading band;3、 Only when the US dollar exchange rate is relatively stable and operates within a narrow range,It's the best time to do a crossover.