How to lock position in ProBit Global contract

Locking a futures position in ProBit Global Contract enables traders to secure profits or limit losses by converting it into a locked position subject to a locking fee.

Dec 02, 2024 at 11:00 am

How to Lock Position in ProBit Global Contract

Introduction

Locking a position in ProBit Global contract is a strategy that allows traders to secure their profits or limit their losses. It involves converting an existing futures position into a locked position by paying a locking fee. This locked position is then settled at the final settlement price, which is calculated based on the underlying index price at the specified settlement time.

Benefits of Locking a Position

• Locking Profits: Traders can lock in profits by converting a winning futures position into a locked position. This ensures that they receive the profits on the locked position, regardless of any future price fluctuations.
• Limiting Losses: Traders can also lock in losses by converting a losing futures position into a locked position. This limits the maximum loss they can incur and prevents further losses.
• Hedging Against Volatility: Locking a position can help traders hedge against market volatility, as the locked position is not affected by price fluctuations after it is locked.

Process of Locking a Position in ProBit Global Contract

The process of locking a position in ProBit Global contract involves the following steps:

1. Select the Position to Lock: First, select the futures position you want to lock. It should be a position that you wish to secure its profits or limit its losses.
2. Navigate to the Lock Interface: Once you have selected the futures position, navigate to the lock interface. This can be found under the "Positions" section on the trading platform.

3. Set the Lock Parameters: In the lock interface, you will need to specify the following parameters:

   • Locked Quantity: Enter the quantity of the futures contract you want to lock.
   • Settlement Type: You will need to select the type of settlement price you want for the locked position (reference price or fair price).
   • Lock Price: You will need to select the price at which you want to lock the position. The lock price should be higher than the current market price if you are locking a winning position and lower than the current market price if you are locking a losing position.
4. Calculate and Pay the Locking Fee: The lock interface will display the locking fee that you need to pay to lock the position. This fee is calculated based on the quantity and type of contract being locked. Carefully review the fee before submitting the locking request.
5. Submit the Locking Request: Once you have set the lock parameters and calculated the locking fee, click the "Lock" button to submit the locking request. The system will process your request and lock your position accordingly.

Considerations for Locking a Position

Before locking a position, it is important to consider the following factors:

• Effectively Locking Profits or Losses: Ensure that you are locking a winning position to secure profits or locking a losing position to limit losses. Locking a winning position too early can prevent you from further profit gains, while locking a losing position too late can lead to larger losses.
• Impact on Trading Margin: Locking a position will require you to allocate a certain amount of margin. Ensure that you have sufficient margin available to cover the locked position in case of any adverse market conditions.
• Risk of Liquidation: If the market price moves significantly against the locked position, it may result in margin calls or forced liquidations. Monitor your locked positions and adjust your risk management strategies accordingly.
• Time Constraints: The settlement for locked positions occurs at a specific settlement time. Traders need to be aware of the settlement time to plan their locking strategies and avoid any potential conflicts.