Due to the impact of the epidemic in the past one or two years, various places have been affected every winter. As a result, they will be suppressed again just after the resumption of production. Workers have gradually increased their pressure on life and work, and personal economic crisis has gradually erupted. Therefore, people will turn to the investment industry, so the first step to enter the barrier is to understand the professional knowledge of what it means to open a position, hold a position, and close a position.
What does it mean to open, hold and close a position?
Opening a position can be understood clearly from the surface, opening a position means establishing, and opening a position means buying items in the form of stocks. The number of stocks held in a position, the larger the position, the more the number that investors can buy, and the greater the investment risk they will bear. Both opening and holding positions are easier to understand, and people know that they can be cleared literally. There are two main forms of closing a position. One is to sell the purchased stocks, and the other is to buy back all the sold stocks. Therefore, the platform should pay attention to two meanings. Investors need to pay attention to buying at a low price when opening a position. If they want to buy at a low price, they need to pay attention to the stock analysis trend to make a reasonable prediction. The purpose of buying at a low price is to sell at a high price. Through the low and high price difference to earn intermediate expenses, the experienced person can obtain more economic benefits in a short period of time, and the opposing risks will gradually increase. Therefore, in the investment industry, don’t be too envious of other people’s gains, and you must know that the economic pressure behind you will be greater.
What does it mean to build a warehouse?
Opening a position is also called opening a position, which refers to the signing of a purchase and sale agreement between the buyer and the seller. According to the meaning of opening a position, it is generally divided into two operation modes: buying and opening a position and selling and opening a position. Buy and open a position: buy a long position in a bullish market, that is, buy a long position when trading; sell and open a position: buy a short position in a bearish market, that is, buy a short position when trading. Therefore, whether it is long or short, contract trading is called opening a position.
What does holding a position mean
Trade operators hold positions in their hands after opening a position, which is called a position. Whether a trader is short or long, holding a futures contract before the expiry of the contract is called a position.
For open interest, this is generally calculated in China. The increase in open interest represents the inflow of funds into the futures market, and vice versa, the outflow of funds from the futures market. For futures prices, it needs to be analyzed together with trading volume.
What does it mean to close a position
Closing a position refers to a trader’s transfer of the purchase and sale contract he holds, whether it is profit or loss. The contract for buying and selling held by the transfer is called long position closing; the contract for selling and holding by buying transferring is called short closing.
Liquidation refers to the behavior of investors buying or selling stock index futures contracts with the same type, quantity, and delivery month as the stock index futures contracts they hold, but the trading direction is opposite, in order to settle stock index futures transactions. The act of buying back a sold contract or selling a bought contract is called liquidation.
A contract that a trader has not closed after opening a position is called an open contract or an open position, also called a position. After opening a position, a trader can choose two ways to close a futures contract: the first is to choose a suitable time to close the position; the other is to wait until the contract trading day for physical delivery.
Which industry are these three frequently used in
Once you have a professional understanding of what is meant by opening a position, holding a position, and closing a position, you need to determine the scope of use of the three. The three professional terms are mainly used in the financial industry, and the most frequently used in foreign exchange and stock investment. However, for the opening, holding, and closing of a position, there is a corresponding effect on the buying, selling, and holding of stocks. Therefore, in the process of operation, a reasonable plan should be made for the relationship between the three, and any terminology can be clearly grasped. Basic meaning, to achieve rapid conversion, to quickly make judgments, and to hurry up to buy and sell operations in times of tension.