06.1 Risk Management

Locking / Hedging

Locking is a technique used to minimise the loss via performing a new transaction in the opposite direction of the former transaction (using the same lot size) as it will aid in locking the trading position.
Unlocking is a technique to recover the loss and/or profit from the locked trading position.

Switching

Switching is one of the techniques used to change the transaction direction to the opposition direction via performing a new transaction in the opposite direction from the former transaction (by doubling up the lots) as it will switch the risk of the transaction and profit from it. Hence, the switch covers the loss and gain you profit.

Rolling

Rolling is one of the techniques used to gain additional profit via performing a new transaction by doubling up in the same direction from the former transaction, as it used to gain the equal if not more profit in the same or faster time taken than the previous transaction.