Many people prefer to increase their positions during floating profits. This strategy can indeed double their funds quickly, but at the same time, the risks cannot be ignored.

Take contract trading as an example. Assume that your starting capital is 100U and you use 20x leverage. If a currency rises 30% in one day, your profit will be 6 times, or 100U, without any operations. Becoming 700U, this is already a pretty good return.

However, if you continue to increase your position with floating profits as the currency price rises, for the same 30% increase, the profit without rolling the position may be 6 times, while rolling the position may bring 20 times, 50 times or even 100 times. income. The charm of rolling positions is that it can significantly amplify profits in the short term.

But the biggest risk of this strategy is that if the market suddenly retracts by more than 5% after you add a position, you may face the risk of liquidation and everything will have to start again. But in fact, this risk is controllable, because you are using the leverage effect of the contract to make a big gain with a small amount. The worst case scenario is nothing more than a loss of the initial 100U.