Unlocking Locked Positions * Exit Strategy

Paying attention to locking positions is not unfamiliar to investors who have been in the market for a relatively long time, but many beginners are unclear about it. What does locking positions mean? It refers to a method of operation where the same asset and equal position are used: half of the position is bought and half is sold. When the market reverses, one side is immediately closed, and the other side is replenished. When the market rebounds, all positions are closed to realize profits and unlock the positions;

For example, if you buy 1 Bitcoin at 100,000, but the market is trending downwards, and when the price reaches 99,800, you anticipate that the market will continue to decline. At this point, you buy to short +1 Bitcoin, which locks your loss to a maximum of 200 dollars. Once the market rebounds around the 99,800 level, you expect it to rise. At this time, you close your short position and replenish your long position. When the market rebounds above 99,800, your positions will have been fully unlocked, and you can exit, waiting for the next opportunity.

One thing to remember is that locking positions requires additional margin, so it is limited by the amount of capital you have. Additionally, the reversal points in the market can be difficult to pinpoint, so this type of operation requires precise judgment and decisiveness regarding the market; otherwise, it is hard to unlock the positions.