Position locking generally refers to holding positions with opposite directions and identical lot sizes for the same trading instrument. Under the current rules of Lucky Gold, when the prepayment ratio is above 30%, opposite-direction positions of the same instrument with equal lots meet the locking criteria, and no extra margin is required to open the corresponding locked position.
For example, if you already hold 1 lot of buy position for London Gold and then open 1 lot of sell position for London Gold, the two positions have the same lot size and form a set of opposite positions.
Many traders, when first encountering "position locking", assume it halts losses. This understanding is incomplete.
What Happens After Locking Positions
Suppose you hold 1 lot of London Gold buy position. The market falls and the account incurs floating losses. You then open 1 lot of sell position. From this point onward, if gold keeps falling, the loss on the original buy position continues to expand, while the newly opened sell position generates floating gains in the opposite direction. If prices rise, the two positions react in reverse.
Therefore, when lot sizes are fully matched, the combined floating result of the two orders becomes far less sensitive to subsequent market movements. Existing floating losses will not disappear automatically simply because positions are locked. This point is extremely important.
Why No Additional Margin Is Required for Position Locking
Per Lucky Gold’s current position locking rules, you may open locked positions without depositing extra margin once these conditions are met:
· The account prepayment ratio exceeds 30%;
· Both positions are for the same trading instrument;
· The new position direction is opposite to the original position;
· The two positions have equal trading lots.
Example: 1 lot of long gold position paired with 1 lot of short gold position. If one side is 1 lot and the other is only 0.5 lot, the remaining 0.5 lot still carries directional exposure. The whole set cannot be regarded as fully locked.
Are There Still Trading Costs After Locking Positions?
Yes. Orders on both sides are genuine trades. When opening the new reverse position, you still trade at the corresponding bid and ask quotes. If positions are held past the settlement time, overnight charges will apply in accordance with relevant rules.
Position locking reduces your account’s sensitivity to future price swings, but it does not eliminate trading costs. If positions remain locked for a long time, holding costs will keep accumulating.
Why Some Traders Find It Harder to Manage After Locking Positions
Opening locked positions is easy, but unlocking requires new trading decisions. Assume you open a short position after your long order runs into losses. The market then rebounds.
Should you close the long order first or the short order first? If you close the profitable side first, the remaining losing position is exposed again to market risks. Another misjudgment will alter your account risk level.
Hence before locking positions, you should clarify: Why you lock the positions; When you plan to unlock them; Which side to close first; The maximum final loss you can accept.
Without an exit plan, position locking can easily turn one problem into two separate orders.
Is Position Locking Suitable for “Waiting for Prices to Rebound”?
If you merely wait for prices to recover, time cost and market shifts cannot be predetermined. Some markets rebound within hours, while certain trends may last for days or longer. Overnight fees and capital occupation persist during the holding period.
Therefore, before using the lock function, treat it as a position management tool rather than an automatic fix for losses. Your final trading outcome ultimately depends on how you manage the two opposite positions afterward.
Risk Warning: Position locking cannot eliminate existing floating losses nor guarantee future profits. Before using position locking, calculate trading costs, account equity and directional risks after unlocking.