MBG Markets: The ultimate trick of foreign exchange veterans - lock orders

Lock originally refers to being placed on an object that can be opened or closed, and opened with a key or code. The extended meaning is to lock and close with a lock. It is also commonly used in daily life, such as locking the door when going out, locking the car when using it, etc. All of these are aimed at avoiding property damage. stayforeign exchangeIn the market, lock up is a stop loss method that many experienced investors will use, and it is generally not recommended for foreign exchange beginners to easily use lock up operations for stop loss.


1、 What does foreign exchange lock order mean?

Lock up trading, as the name suggests, is a two-way operation adopted by traders to continue the profits in the transaction or avoid greater losses. Its characteristic is to simultaneously long and short the same currency.


2、 How many ways are there to lock orders?

Lock orders can be divided into two types: lock loss orders and lock gain orders.


1. Lock loss

Why is the lock damaged. If you can strictly stop loss, there is no need to take this step. Generally, the order will be locked only when the following situations occur: one situation is that the market becomes unclear after placing the order, and when the direction cannot be determined, the order can be locked; Another scenario is when you have not set a stop loss and your account has already suffered significant losses and cannot bear to close the position. To prevent further losses or liquidation, you can also choose to lock in the loss operation. After locking orders, there is often an important operation that is forgotten, which is to add a stop loss to orders with opposite analysis directions, which can be set slightly higher2-3A point is swept back and forth to prevent excessive fluctuations before the real market goes out.



2. Lock in surplus

Strictly speaking, lock in profit is not much different from lock in loss, the only difference is that when locking in an account, one account holds a loss and the other holds a profit. The suggestion is to lock in profits and take profits in a timely manner or follow up on mobile stop losses, because placing an additional order is not as good as placing an order after the market is clear.
Because locking in profits locks in profits, it is relatively easier to solve and causes much less psychological burden. Although it is said that, the principle of releasing an order is actually similar to that of releasing a loss order. Because the two want to achieve similar results, one is to reduce losses, and the other is to strive for maximum returns. There is a saying in investment: reducing losses is equivalent to gaining benefits.


3、 How to resolve the order?

Cancelling an order means that you need to choose an appropriate time to unlock the order after locking it, that is, to close the two orders separately. If you never close the position, although the account shows no loss, in addition to bearing the interest of the overnight order, your subsequent operations will also be affected.
There are two difficulties in solving an order: the point and time of solving the order. At what location and when to close the order will directly affect the profit and loss of your account. Simply put, it is best to find a break point, and the time must be when the market direction is clear.

For ordinary investors, it may be very difficult to grasp the point and time. BelowMBG MarketsIntroduce two relatively simple, feasible, and easy to master methods through practice.
Method 1: First, solve the inverse equation; Method 2: First, solve the profit order.MBG MarketsMore inclined towards method one. Because our purpose of locking orders is to prevent losses, when the market is clear, removing the counter trend orders is equivalent to cutting off the source of losses. However, it should be noted that a counter trend order does not equate to a loss order, and another counter trend order can choose whether the market trend is similar or flat.
The second method is to make a profit first, and the other order can wait for a pullback or reversal before leveling. But when it comes to callbacks and reversals, there is also a question of timing. If another order is not balanced in time, it is likely to switch to a medium to long term.
Overall, the difficulty of lock order operations is relatively high, and traders should be engaged inForeign exchange transactionsMaster more foreign exchange trading techniques, accumulate experience, and gain insight into market trends. No matter what trading method you use, always remember that risk control is always the top priority! A person who is good at planning can have a long-term vision and be prepared in advance. Although they cannot avoid all difficulties, it is better to be unprepared and caught off guard when problems arise. The saying goes, "When the scenery is long, one should broaden one's horizons." Only by opening up one's horizons can one see better scenery. When climbing the peak of the "foreign exchange market," one can better face everything that is about to come, including difficulties.