Long-line transactions are relatively short-term transactions, with traders having longer lead times from the start of a warehouse to its end. In general, long-line transactions usually take one year or longer。
Benefits and advantages of long-term trading:
1. Long-term transactions can maximize, and may increase several times, the returns of investors if the silos fluctuated;
2. Long-line transactions can save traders ' time and costs because of their longer life cycle, and can largely be placed as long as the general direction of the holdout remains unchanged. Foreign exchange long-line trading techniques:
1. Patience。
Long-line traders need to be more patient than short- and medium-term traders, and long-term holdouts are unbearable for many investors, especially when seeing foreign exchange volatility, short-line investors can settle immediately, while long-line investors need patience。
2. Low leverage + lightweight trading。
Many traders consider long-line trading to be the secret for billionaires, such as soros or buffet, to be so wide and resistant to market noise. The use of 10:1 or less leverage is sufficient to hold traders longer and to withstand daily price fluctuations. This is followed by a light-track trade, with 1 per cent of the account capital。
3. Reserve sufficient funds。
In long-line foreign exchange transactions, the volume of capital is also a very important component, and the low leverage of long-lines requires investors to invest modestly in higher profits。
Long-line and short-line operations are very different, and investors cannot use short-line trading experience to operate long-line transactions. This is generally the case with techniques for long-line foreign exchange transactions。
