For those already poor across the world of trading would be very friendly with the name of locking or in his hedging cool language. Not a few who are used to hedging, but not a few who do not know how to remove lockingan or hedging so that it can get out of position floating loss and turn it into profit, or minimize loss.
Hedging itself is one of the risk management techniques that is done by opening 2 positions with different directions in sequence with the same number of lots, if the number of different lots then the name is no longer locking but hedging martingale. The goal is to lock or locking the wrong position so that the amount of loss that occurs will not increase even more.
For those of you who do not know how to open locking or hedging correctly then this is the right time for you to learn how to open locking forex trading
EXAMPLE LOCKING OR HEDGING
Suppose GBP / USD is at position 1.5850 and predict the market will be bullish but the market turns instead to 1.5830 position. So from the original position at 1.5850 and down to 1.5830 there is a considerable floating loss of 20pips. Because of doubt market will move where finally decided to do locking in position 1.5830.
So currently there are 2 positions, buy at 1.5850 and sell at 1.5830 degan distance of 20 pips, so wherever the market moves with a lockingan like this the distance will remain at 20 pips.
Back to the topic of the problem, most people after locking like this tend to hesitate to open lockingan because the biggest fear is that the floating loss will open wide and the losses become wider, this also ultimately makes many people clear position and mengorbanakn lockingan them Should see its floating loss is getting bigger due to the fact the market moves quite fluktiatif.
In fact, in opening lockingan like this is not too difficult, there are some techniques and ways to open lockingan so as to minimize the risk or even able to reverse floating loss into profit.
There are 2 options and ways you can do to open lockingan and make the position of floating loss to profit
CLOSE LOCK POSITION WHICH IS PROFITING WAITING POSITION LOSS
BEING IMPASS
The first way can be done if the market conditions are in a position of saturation, and is ready ready to reverse direction. From the locking position above, buy at 1.5850 and sell at 1.5830, and it turns out the market in position 1.5800 market condition is very saturated and ready to reverse direction. What to do?
If you look at the locking buy position at 1.5850 and sell at 1.5830 and the position now at 1.5800 that means sell 1.5830 is in the position of profit 30 pips and buy 1.5850 is there is a loss position 50 pips.
What should be done now is to release the position of sell 1.5830 with a profit position of 30 pips and let the position of buy 1.5850 open with loss condition 50 pips. Because the position is saturated, and the position has started to reverse direction, the market will move up.
So when the price is in the position of 1.5820 the buy position will be at 30 pips loss position, with the previous profit sell 1.5830 is released in position 1.5800 then the position was in a breakeven position. And if allowed to continue to move up the results obtained is profit
WAIT LEVEL BREAKOUT AND CLOSE LOCK POSITION WHICH IS LOSS
This is the opposite of the first way, where the first way is to wait for the reversal pattern and release the current profit position. In this condition, the market is in active condition and preparing for a breakout at position 1.5800. What to do?
If you look at the locking buy position at 1.5850 and sell at 1.5830 and the position now at 1.5800 that means sell 1.5830 is in the position of profit 30 pips and buy 1.5850 is there is a loss position 50 pips.
All you have to do is close the buy position at 1.5850 with a loss position of 50 pips and let the position sell 1.5830 remains open with a profit position of 30 pips. Usually that happens from the breakout is a significant price change and quite long, but if the market continues to fall to the position of 1.5780 then the price position is breakeven because the profit generated is 50 pips equal to the previous loss position at 50 pips, and if the price continues to move down Then it is a profit for you.
From the above two explanations can be obtained conclusion that how to remove lockingan is waiting for the price breakout or saturated. To see these two circumstances can be used stochastic oscilator or MACD indicator so that saturation conditions and reversals can be seen clearly and also bolinger bands so that the breakout condition can be seen clearly.
Hedging itself is one of the risk management techniques that is done by opening 2 positions with different directions in sequence with the same number of lots, if the number of different lots then the name is no longer locking but hedging martingale. The goal is to lock or locking the wrong position so that the amount of loss that occurs will not increase even more.
For those of you who do not know how to open locking or hedging correctly then this is the right time for you to learn how to open locking forex trading
EXAMPLE LOCKING OR HEDGING
Suppose GBP / USD is at position 1.5850 and predict the market will be bullish but the market turns instead to 1.5830 position. So from the original position at 1.5850 and down to 1.5830 there is a considerable floating loss of 20pips. Because of doubt market will move where finally decided to do locking in position 1.5830.
So currently there are 2 positions, buy at 1.5850 and sell at 1.5830 degan distance of 20 pips, so wherever the market moves with a lockingan like this the distance will remain at 20 pips.
Back to the topic of the problem, most people after locking like this tend to hesitate to open lockingan because the biggest fear is that the floating loss will open wide and the losses become wider, this also ultimately makes many people clear position and mengorbanakn lockingan them Should see its floating loss is getting bigger due to the fact the market moves quite fluktiatif.
In fact, in opening lockingan like this is not too difficult, there are some techniques and ways to open lockingan so as to minimize the risk or even able to reverse floating loss into profit.
There are 2 options and ways you can do to open lockingan and make the position of floating loss to profit
CLOSE LOCK POSITION WHICH IS PROFITING WAITING POSITION LOSS
BEING IMPASS
The first way can be done if the market conditions are in a position of saturation, and is ready ready to reverse direction. From the locking position above, buy at 1.5850 and sell at 1.5830, and it turns out the market in position 1.5800 market condition is very saturated and ready to reverse direction. What to do?
If you look at the locking buy position at 1.5850 and sell at 1.5830 and the position now at 1.5800 that means sell 1.5830 is in the position of profit 30 pips and buy 1.5850 is there is a loss position 50 pips.
What should be done now is to release the position of sell 1.5830 with a profit position of 30 pips and let the position of buy 1.5850 open with loss condition 50 pips. Because the position is saturated, and the position has started to reverse direction, the market will move up.
So when the price is in the position of 1.5820 the buy position will be at 30 pips loss position, with the previous profit sell 1.5830 is released in position 1.5800 then the position was in a breakeven position. And if allowed to continue to move up the results obtained is profit
WAIT LEVEL BREAKOUT AND CLOSE LOCK POSITION WHICH IS LOSS
This is the opposite of the first way, where the first way is to wait for the reversal pattern and release the current profit position. In this condition, the market is in active condition and preparing for a breakout at position 1.5800. What to do?
If you look at the locking buy position at 1.5850 and sell at 1.5830 and the position now at 1.5800 that means sell 1.5830 is in the position of profit 30 pips and buy 1.5850 is there is a loss position 50 pips.
All you have to do is close the buy position at 1.5850 with a loss position of 50 pips and let the position sell 1.5830 remains open with a profit position of 30 pips. Usually that happens from the breakout is a significant price change and quite long, but if the market continues to fall to the position of 1.5780 then the price position is breakeven because the profit generated is 50 pips equal to the previous loss position at 50 pips, and if the price continues to move down Then it is a profit for you.
From the above two explanations can be obtained conclusion that how to remove lockingan is waiting for the price breakout or saturated. To see these two circumstances can be used stochastic oscilator or MACD indicator so that saturation conditions and reversals can be seen clearly and also bolinger bands so that the breakout condition can be seen clearly.
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