Discuss iForex.com (.in, .hu)

[Painskin]

I know what you mean. Yes, in general, this strategy does not sound bad.
As an example, you can buy some coins that you think are capable of growth. And if the price drops, you can buy more. thus averaging your investment portfolio.
But it seems to me that buying crypto without leverage will not earn much. Although it all depends on market conditions.

 

[Magestaff]

Yes, of course you need more margin to trade without leverage. But at the same time, note that the size of risks decreases.
Moreover, cryptocurrencies are known for their high volatility, so trading them without leverage can make sense.
I would evaluate this trade as an investment opportunity or as a long-term investment.

 

[Talar]

Looks like you guys changed the subject while I was gone.
So, I'll share my opinion while I'm here.
First of all, trading without leverage is really like investing. And like any investment such trading has its advantages and disadvantages.
In short, as for crypto trading in such conditions, I would advise you to allocate a part of your deposit to such trading. And the rest I would leave for the usual leveraged trading.

 

[JoJozil]

Hi everyone, since we are discussing different topics about trading on iForex I would like to know your opinion about locking positions.
I am interested to know what you think about this trading system.
Basically, it is just opening order of the same size but in the opposite direction from order that is already open. And essentially it leads to that proft or loss from open order is compensated by profit or loss of second order opened in opposite direction.

I am wondering how this can be applied in practice and what benefit it has? Please post your ideas

 

[Goldcaster]

Hi everyone, since we are discussing different topics about trading on iForex I would like to know your opinion about locking positions.
I am interested to know what you think about this trading system.
Basically, it is just opening order of the same size but in the opposite direction from order that is already open. And essentially it leads to that proft or loss from open order is compensated by profit or loss of second order opened in opposite direction.

I am wondering how this can be applied in practice and what benefit it has? Please post your ideas

Yes, such a system exists in forex trading. And as far as I know it is a rather complicated way of trading. Because you need to know at what moment it is better to put this lock. And you also need to understand when and how to remove this lock.
As it seems to me the most simple and useful way to use such locks is high volatility caused by important economic news.
Here is an example.

Suppose you have open buy order on USDCAD. And in a few hours will be a release of important news on Canadian economy. You realize that news will most likely cause correction and then price will continue to move upwards. At the same time, due to high volatility there is a risk that margin will not be enough to wait out correction. Therefore, you would like to "freeze" order for some time and "unfreeze" it after news is released. In other words, you want to wait for the high volatility period to pass.

It seems to me that locking of positions, which you are asking about, may be convenient for this purpose.

 

[Meztigami]

Oh, I like this way of using locs. I thought this tool was almost useless in practice. It helps to get emotional calmness but actually just delays the time of order decision making.

Most likely this trading technique can be useful under some conditions. But as it seems to me many traders will feel more comfortable making decisions without delaying them.

In any case, this is quite interesting technique and there may be several other ways to use it more successfully.

 

[Painskin]

I was thinking of using position locking as a sort of emergency tool.
That is, it is probably not right to build trading strategy based only on locking positions.

I am trying to imagine how locking can be used, for example, when converting positions to a no-loss zone.

I read that some traders instead of closing profitable positions switch them to such zone.
Position is in profit zone and trader removes take profit and moves stop loss so that when it is triggered trader will have some profit.

 

[Meztigami]

I'm not quite sure what you mean...
What's a no-loss zone? And how can closing at stop loss make a profit?

 

[JoJozil]

Let me try to explain how I understand it.

In my opinion Painskin meant such a moment during trading when price is in profit zone. And at this moment stop loss value can be set above or below opening price depending on which way order was opened.
For example, I opened order to buy Gold at the price of 2000 dollars. As we can see recently Gold price has been rising and I was lucky. Let's say Gold price reached 2200 dollars. This is less than my take profit (2500 dollars), but it is quite big profit.
I decide to remove take profit to not limit myself in profit and put stop loss at the level of 2100 dollars.
This way, if stop loss is triggered, I will still have a profit of 100 pips.
As far as I understand, this is the no-loss zone. This can be alternative to manually closing order and opening a new order without take profit and with stop loss at the level of 2100. Result in these two options is the same, but I will save on spreads and commissions, if there are any.
Therefore, switching order to no-loss zone is probably a more profitable and easier solution than opening a new order.

 

[Painskin]

Let me try to explain how I understand it.

In my opinion Painskin meant such a moment during trading when price is in profit zone. And at this moment stop loss value can be set above or below opening price depending on which way order was opened.
For example, I opened order to buy Gold at the price of 2000 dollars. As we can see recently Gold price has been rising and I was lucky. Let's say Gold price reached 2200 dollars. This is less than my take profit (2500 dollars), but it is quite big profit.
I decide to remove take profit to not limit myself in profit and put stop loss at the level of 2100 dollars.
This way, if stop loss is triggered, I will still have a profit of 100 pips.
As far as I understand, this is the no-loss zone. This can be alternative to manually closing order and opening a new order without take profit and with stop loss at the level of 2100. Result in these two options is the same, but I will save on spreads and commissions, if there are any.
Therefore, switching order to no-loss zone is probably a more profitable and easier solution than opening a new order.

You're absolutely right! That's exactly what I was writing about!