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Risk control of foreign exchange transactions
Foreign exchange markets are also subject to risks, like any other investment market.
There are high profit opportunities for investors in foreign exchange margin transactions, but there are also risks involved.
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Control the proportion of open positions for each transaction
It is important for traders who enter the market not to have too many open positions. Considering gradually increasing the proportion of open positions only after sufficient trading experience and good transaction records have been accumulated.
The proportion of new positions opened by newcomers on the foreign exchange market will not exceed 5%.
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Each transaction must set up stop loss prices
As long as the exchange rate rises, a stop loss price can be increased while the exchange rate runs in the favorable direction of its own operation. If the exchange rate runs in the opposite direction, the stop loss cannot be expanded otherwise the original risk would be violated.
In general, the risk of relatively small stop loss controls is relatively small, and short-term operations can set a relatively small stop loss, while medium and long-term operations can set relatively large stops.
The stop loss point should not be set farther than the compulsory positioning point. Otherwise, the position will be forced to close before the stop loss price, and the stop loss price won't work.oss price.
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Set up profit -making prices can also reduce risk
The floating profit generated by the unbounded position is not a real money. Only when it is profitable, it really makes money.
Generally speaking, short -term operations can be relatively small; long -term operations are relatively large.
At every operation, it is best to stop twice or even higher, but only if the potential income risk ratio is high enough.
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Positioning time should not be excessive
The longer the positioning time, the more uncertain incidents may occur during the holding period, and the greater the risks brought by the opening of the position, the potential risks of short -term transactions are less than long -term transactions.