What is compound position trading? What does compound position trading mean
In order to carry out foreign exchange trading, we must learn and train the basic knowledge of foreign exchange, and according to the basic professional knowledge, we can not do wrong in the basic common sense among investors. Beginners don't know how to deal with compound positions. So, what is compound position trading? What does compound position trading mean?
I firmly believe that many foreign exchange speculators have encountered such a difficult problem, that is, one day, the development trend suddenly can not move forward, and there is a situation of stagnation. In addition, the shaking index value shows information. In addition to the overbought situation, the price chart also shows that the information will face some key obstacles. Investors will face the problem of what to do. Although traders firmly believe that there is still a lot of room for the sales market to rise, they are worried about the price decline and lack of basic accounting theory. Is it compulsory to close positions for profit or is it safe?
At this time, investors will be able to choose composite positions trading. What is compound position trading? What is the meaning of compound position trading? To put it bluntly, compound position trading is actually compound position. It refers to that traders divide the trading enterprise into two parts: trading position and follow-up position. Some of them try to be beneficial for a long time. For them, traders set long-distance stop loss orders to leave enough space for the promotion or adjustment of the sales market. From a long-term point of view, this position can produce greater profits.
In the asset allocation of foreign exchange traders, a part of the trading position is deliberately vacated to engage in the short-term trading of stocks which are often opened out of the market. If the sales market has already exceeded the first overall goal and is close to a certain block area, and the wobble index value also shows the overbought situation, then the trader will be able to force a part of the trading position to close the position for profit, or allocate a close stop loss order. Its purpose is to lock or guarantee profits. If the future development trend is fixed, then the trader will make up the position that has been forced to close again.
Therefore, it's better for traders to avoid only one contract or one enterprise position at the beginning of trading. According to the trading of multi enterprise positions, traders have greater coordination ability, which will improve the overall trading test results.