What is lock order in foreign exchange gold trading?

In foreign exchange gold investment, there are two types of lock orders: lock loss orders and lock gain orders. In fact, the lock order editor does not recommend everyone to operate. Strictly set stop loss or take profits in a timely manner is sufficient. If operated improperly, small losses are highly likely to turn into large losses. Below, the editor will explain lock loss and lock gain separately for everyone.

1、 Lock loss

1. 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 in the opposite direction of the analysis. It can be slightly set 2-3 points higher to prevent excessive fluctuations and being swept back and forth before the actual market goes out.

2. How to solve the problem. 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 foreign exchange spot gold lock orders: the location and time of the lock order. At what point and when will the order be released 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. Below are two relatively simple, feasible, and easy to master methods after practice.

Method 1: First, solve the inverse equation;

Method 2: First, solve the profit order.

The purpose of lock orders is to prevent losses, so 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 necessarily equate to a loss order.

Another option is to follow the trend and choose whether the market is stable or not.

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.

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.