Is it advisable to speculate on foreign exchange and make profits through swiping transactions?

The word brush order comes from Taobao brush order, which is generally a way to achieve a certain transaction through virtual buying and selling, but inforeign exchange marketThere are also a large number of traders who brush orders, but most of them end up in liquidation. What is the reason for this?

What is swiping?

Brush transactions are usually divided into two types, one is the brush net worth, and the other is the brush rebate.

Brush net worth is a type of high-frequency trading or scalp trading. Traders take a fast-forward and fast-out approach, and each profit is very small. They mainly rely on the winning rate to ensure profits. This type of brush net worth is often a small position, with high-frequency trading.

For example, each time you open a position of 0.01 lots, assume that the transaction cost is 0.3 points, and the take profit is set at 13 points, that is to say, if you earn 1 dollar for 0.01 lots, you will leave. Since the foreign exchange market often fluctuates back and forth, this lower profit target is also relatively easy to achieve, and you can pursue a higher winning rate. If the winning rate exceeds 50%, you can obtain profits.

Brushing rebates is a pure way of brushing orders, such as: agents andForex PlatformThe agreed foreign exchange gold spread is $0.3, that is, the transaction cost of buying and selling a single lot of gold is about $30, and the agreed rebate is $6. Some traders go to the foreign exchange platform to open a personal agent in order to obtain the $6 profit. After they come back, they trade swiping orders and Taobao swiping orders are similar. They mainly rely on the number of swiping orders to make profits, and do not pursue trading profits.

How is the profit and loss?

The pursuit of swiping orders is the number of transactions, second in and second out, which seems to be a good way to profit all the time, but why is it a loss in the end?

This is mainly due to the fact that the floating point that the brush order transaction can withstand is very small, and the book profit of the profitable order during the transaction is very small (mainly earning rebates). Once the market rises or falls instantly, the holding order is covered, and the loss is very large. The profit of the brush order in the past few days is gone, and there are even losses.As a result, it is often taken to counter the trend and add positions or to adopt the method of anti-single，The result of this method is to resist the order to the market rebound, hold the order back or the acceptable degree of loss, and then carry out position squaringIt seems like a good approach.The swiping transaction may face many anti-orders a day. If the market once has a unilateral trend, the anti-single anti-order may not be able to pass.，Accounts often face large losses or even liquidation (as traders who swipe orders are often likely to trade heavily).