Will existing profits from adding positions in the currency circle be reduced?

Existing profits from adding positions in the currency circle may not necessarily be reduced. It depends on factors such as market trends, entry timing, position increase ratio, position cost and transaction fees. When the market rises, the profit from adding a position may increase, and vice versa, the risk increases. The proportion of adding positions should be small, the cost of holding positions should be controlled, and the handling fee should be included in the cost.

Will the existing profit of adding a position in the currency circle be reduced?

Answer: Not necessarily.

Detailed explanation:

Whether the existing income from adding a position in the currency circle will be reduced depends on a variety of factors:

• Market trends: If the market price continues to rise, the income after adding a position may increase.
• Timing of entry: If you add positions at market lows, your profits may also increase.
• Position adding ratio: Excessively high position adding ratio may increase risks and lead to a reduction in overall returns.
• Holding cost: The new cost when adding a position will affect the overall position cost. If the cost of adding a position is higher than the original cost, the yield may be reduced.
• Transaction fees: Additional transactions will incur handling fees, which will also affect the overall income.

Specifically:

• When the market rises, the profit from adding a position may increase: When the market price rises, the position after adding a position will increase, thereby increasing the potential profit.
• When the market falls, the risk of adding a position increases: When the market price drops, the position after adding the position will also increase, thereby expanding the risk of loss.
• The ratio of adding positions should be small: An excessively high ratio of adding positions will increase the risk, and even if the market rises, the rate of return may decrease.
• Holding costs should be controlled: The holding cost should be considered when adding a position. If the cost of adding a position is higher than the original cost, the overall rate of return may decrease.
• Handling fees should be included in the cost: Transaction fees will affect profits and should be included in the cost of adding a position.

Therefore, whether the existing income from adding positions in the currency circle will be reduced depends on the specific situation. Factors such as market trends, entry timing, position adding ratio, holding costs and transaction fees need to be comprehensively considered.

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