Forced Position Closing in Forex】

{}Posted in2023/2/24 20:24:33 | 8Browse

What Forex rebate for Exness cashbackforexexness position clos ForexrebateforExnessg? First of all, to forexcashrebate a position, for a long position, it means to sell a long currency; forexrebates for a short position, it means to buy a short currency, so as to close a position. In order to prevent the further expansion of risk, the exchange will be mandatory closing of open positions held by the exchange, which is forced to close positions in foreign exchange trading, usually refers to the broker will be held by the customers open positions for mandatory closing treatment However, todays introduction, I personally also set the traders stop loss, stop profit also into this system After all, according to the risk management system, the The establishment of stop loss and take profit are part of this system, and are non-customer manual trading forex trading market forced to close the classification of then according to this system, forex trading market forced to close positions can be broadly divided into four categories: 1. based on the margin ratio of forced to close positions here to say, forex trading, we like to say based on the margin ratio of forced to close positions as a burst, in fact, the two are There is a difference between the original intention of the burst position refers to the cashback forex loss to a negative net value of the state in the actual transaction, the loss to a negative number of cases is not rare, investors usually put the account nearly lost all the money, to the state of the inability to continue trading called a burst position and forced to close the position is due to the margin ratio triggers the dealer to set the strong closing conditions and lead to the single forced to close the margin ratio = (net value / used margin) * 100% Traders liquidation rules Most of the liquidation rules in the market today have a margin ratio of 100%, but there are some brokers will set the value lower in order to make the customers capital utilization higher lower liquidation ratio settings can give customers better capital utilization, but traders bear a higher margin risk, because when the market is volatile and the customers position is heavy, the liquidation may lead to account equity is Negative, the usual situation of the dealer will not require customers to compensate for the negative amount, on the contrary, the dealer will clear the account so that customers can deposit again, it is clear that this part of the negative amount will be bought by the trader single heavy positions and light positions forced to close heavy positions are easy to be forced to close, but after the forced to leave more money; and light positions are not easy to be forced to close, but once the forced to close, the money will be left less We give an example to illustrate: (with the most Assuming that the account now has $2,000, do 1 hand of the United States and Japan, take up $500 margin if just do not earn or lose, the margin ratio is 2000/500 = 400% a hand of the United States and Japan, fluctuations of a point, about $9, that is, if the market runs in the direction of your favor 1 point, you will earn about $9 If the market runs a point in the direction unfavorable to you, you will lose or earn less than $9. So: on the one hand, when the foreign exchange market runs about 222 points in the direction favorable to you, the account is doubled; on the other hand, when the market runs in the direction unfavorable to you, the floating net value is close to $500, the margin ratio is close to 100%, and when the margin ratio is below 100%, it is forced Close the position Therefore, you have $1500 can allow you to withstand the risk of market volatility before the crash, 1500/9 = 166.67 points that is to say, when you do the U.S. and Japan with a quarter of the position, the reverse run 166 points or so may allow you to crash And then another example, if the $2000 trading account you do 0.2 lots of U.S. and Japan, taking up $100 of margin The margin ratio is 2000/100=2000% when the floating loss to $1900, the floating net value is close to 100, the margin ratio is close to 100% 0.2 hands, a point value of about $ 1.8, 1900/1.8 = 1055.56 points that is to say, 5% of the position to do the U.S. and Japan without stop loss drift single, the account before the crash The maximum can withstand counter-running about 1055 points In addition, after the position, the account is not a penny, the account and the net value in If you do 1 hand storm, is the net value of slightly less than 500 when the storm, so the account will often have about 499 U.S. dollars If you do 0.2 hand storm, then the account is only about 99 U.S. dollars2. Violations were forcibly closed this point in particular to pay attention to, many brokers have their own trading rules, which stipulate what things are illegal, although many are overbearing terms, but customers go to the platform before opening an account, be sure to ask clearly, how the transaction is considered a violation of many traders due to violations were closed, sign the rules when you must see clearly, many have overbearing terms, or then there will be suffering 3. stop gain, stop loss Close my position for what will be very stop profit, stop loss in the mandatory close, because on the one hand, stop profit and stop loss is also part of the risk control, if the above two are brokers set to force the closure of the words, then the stop profit, stop loss is the trader set to force the closure of their own 4. black platform to force the closure of this situation do not want to talk more, the forest is big what kind of have, the domestic platform so dry also, can only say to find some reliable A little more reliable platform

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