Opening a position, closing a position, and holding a position may be the most easy-to-understand vocabulary, but it is not ruled out that some novices confuse the concepts of these three in a state of impatience, so we may wish to review these three. Basic knowledge points.
Forex novice knowledge: what do opening, closing and holding positions mean?
Open a position
The popular point of opening a position is how many lots we are about to buy. For example, if I want to buy 3 lots of iron ore today, this kind of order trading is called opening a position or opening a position. In daily trading, there are two main trading methods, one is to go long in the bullish market (buyer), and the other is to go short in the bearish market (seller), so we can also understand that in the transaction, whether it is buying or selling, whatever New orders are called open positions.
Since futures is a two-way transaction, we can simply understand that closing a position means selling what was originally bought and buying what was originally sold. As long as the existing order in hand is sold or bought in order to obtain profit, the method is to close. warehouse. There are also statements about closing a position on the same day and closing a position on the next day, and closing a position can also be divided into a forced liquidation and a hedge liquidation.
This statement of holding a position is for closing a position. As the name implies, holding a position refers to the way that a trader keeps holding the order in his hand for profit after opening a position, which is called a position.
The essence of locked position is to close a position, but its function is mainly a means taken under special circumstances, such as a special means taken when it is too late to close the position during a rapid rise or fall and may have to backhand, but the lock Positions will pay more transaction fees than closing positions. For another example, when the main force enters a certain product in the early stage, the situation that requires both sides to establish warehouse receipts also requires most of the locks. Locking can sometimes effectively achieve the main purpose means.