Trading by Locking the Trading Positions

Risk control takes a key place in the financial success formation in the market. If you have a trading strategy, then in combination with a competently matched risk and money management, you will succeed. I'm a fan of traditional capital management, but there are methods and approaches that can optimize the current risks. These approaches are based not on opening a position with a specified risk, but rather in controlling the risk that has arisen. It's about averaging and locking. I propose to learn more about the second way, because it is used by the most beginners, who however have no clue how to get out of the lock.

Locking of the trading positions is a double opening of a trading position for the same financial asset in the fix api forex market, which is targeted to fix the risks. An important element is that the locking is fixed, rather than reduces the risks that arise. Thus, they do not go somewhere and do not decrease, neither grow.

Opening of positions occurs when the first transaction demonstrates a significant loss. Then, the fix api trader decides to open another position, but in the opposite direction. Thus, the arising risk is fixed in the points between the prices of opening of both positions. The difficulty arises in the fact that you need to know when and how to get out from the lock. To do this, before opening the second transaction, you need to analyse the market and determine the level to which the price is going. As soon as the price reaches this value, it is necessary to close the profitable position and expect a rebound from the level, which will contribute to the subsequent risk reduction.

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