What does bitcoin mean by opening and closing
1. Open a position and build it. In the transaction, there are usually two ways of operation, one is bullish market to do long (buyer), the other is bearish market to do short (seller). Whether long or short, placing an order is called & quot; Opening & quot;. Can also be understood as in the transaction, whether it is to buy or sell, all new positions are called open positions
2. Closing out refers to the transaction behavior of one party of futures trading in order to cancel the previously bought or sold futures contracts. Position closing is a general term for the behavior of long sellers selling their stocks or short sellers buying back their stocks in stock trading
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closing position classification
closing position can be divided into hedging closing position and compulsory closing position
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Compulsory position closing refers to a third party (futures exchange or futures brokerage company, such as Fuhui global gold exchange trading platform) other than the position holder forcibly closing the position of the position holderthere are many reasons for forced position closing in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions, temporary changes in policies or trading rules, etc. In the standard futures market, the most common one is forced closing e to insufficient margin
specifically, when the trading margin required by the customer's position contract is insufficient, and the customer fails to increase the corresponding margin or rece the position in time according to the notice of the futures company, and the market is still developing in the direction of unfavorable position, the futures company will forcibly close part or all of the customer's position in order to avoid the loss expansion, The act of filling the margin gap with the funds obtained
the content of this article comes from the series of general knowledge of legal life published by China Law Press
if you think the futures price will rise, do long (buy and open positions), rise (sell) and close positions, and earn: price difference = closing price - opening price
if you think that the futures price will fall, you can short (open the position) and close the position (buy) to earn: price difference = opening price - closing price
opening a position is to sign a (futures) trading contract
to close a position is to fulfill the (futures) trading contract
opening a position is also called building a position, which means that investors buy or sell a certain number of stock index futures contracts. It is divided into buying opening and selling opening
position closing refers to the behavior of investors buying or selling stock index futures contracts with the same variety, quantity and delivery month but opposite trading direction, and ending stock index futures trading. Buy opening corresponds to sell closing, sell opening corresponds to buy closing
contracts that investors have not closed their positions after opening are called open positions contracts, also known as positions. There are two ways for investors to open their positions: to choose the opportunity to close their positions or to hold them until the last trading day for cash delivery
opening a position is also called building a position, which means that investors buy or sell a certain number of stock index futures contracts. If the investor keeps the stock index futures contract until the last trading day, he must close the futures transaction through cash delivery
position closing refers to the behavior of futures investors to buy or sell stock index futures contracts with the same variety, quantity and delivery month as their stock index futures contracts, but with opposite trading direction, so as to close stock index futures trading.
Both closing and opening are terms derived from commodity futures trading
Close out refers to the behavior of futures investors buying or selling stock index futures contracts with the same variety, quantity and delivery month but opposite trading direction to close the stock index futures transactionto open a position is to build a position, which means that a trader newly buys or sells a certain number of futures contracts. It means that investors buy currency when they judge that the price of currency will rise
extended data:
closing positions in futures trading is equivalent to selling in stock trading. Due to the two-way trading mechanism of futures trading, there are two types of closing positions: buying closing (corresponding to selling opening) and selling closing (corresponding to buying opening)
The whole process of futures trading can be summarized as position building, position opening, position closing or physical delivery. Buying or selling a futures contract in the futures market is equivalent to signing a forward delivery contract. If a trader keeps the futures contract until the end of the last trading day, he must close the futures transaction through physical delivery or cash clearing. However, there are only a few physical delivery. Most speculators and hedgers usually choose to sell or buy back the futures contracts they bought before the end of the last trading daySelling open position and buying close position are terms in stock investment
sell open refers to the trading method adopted by futures traders when they buy or sell a certain number of new futures contracts to put down the future price trend. Sell open, account funds frozen. After the price falls, choose to buy and close the position to earn the price difference
buy close refers to that the investor will not be bearish on the future market but make up for the previous sell contract, offset with the original sell contract and withdraw from the market, and the account funds will be unfrozen
extended information:
in order to close a futures contract before physical delivery, futures investors take the opposite direction; Opening is selling, then closing is buying.) It is used to trade the futures contracts with the same type, quantity and delivery month of the same futures contract that you bought or sold. Due to the two-way trading mechanism of futures trading, there are two types of closing positions: buying closing and selling closing
the effect of position locking is mainly a means taken under special circumstances, such as a special means taken when there is no time to close out the position when it is rising or falling rapidly and it may have to backhand, but position locking will pay more transaction fees than position closing. For another example, when the main force enters a certain variety in the early stage, it needs to establish warehouse receipts on both sides, and most of them need to lock the warehouse
before the maturity of physical delivery or cash delivery, investors can voluntarily decide to buy or sell futures contracts according to market conditions and personal wishes. If an investor (long or short) does not carry out the reverse operation (sell or buy) with the same delivery month and quantity and holds a futures contract, it is called "position". In the operation of gold and other commodity futures, whether buying or selling, all new positions are called Jiancang. After the operator builds a position, he holds a position in his hand, which is called position. In futures trading, whether buying or selling, all new positions are called open positions. After a trader builds a position, he holds a position in his hand, which is called a position
position closing refers to the behavior of futures investors buying or selling stock index futures contracts with the same variety, quantity and delivery month but opposite trading direction, so as to close stock index futures trading. It can also be understood as: closing a position refers to the transaction behavior of a trader to close a position, and the way to close a position is to hedge against the direction of the position.