How to close out BTC's short position
1. Position closing is a term derived from commodity futures trading, which refers to the transaction behavior of one party of futures trading in order to cancel the futures contract bought or sold before. 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
In the process of stock trading, clearing refers to selling all the stocks you have bought and held. Among them, there are many skills Short is an investment term and an operation mode of financial assets. Compared with long, short is to borrow the underlying assets first, then sell to get cash, and then spend cash to buy the underlying assets after a period of time. The common functions of short selling are speculation, financing and hedging4. Position explosion refers to the situation in which the client's equity in the margin account of investors is negative under some special conditions. A burst is a loss greater than the margin in your account. After the company is forced to level, the remaining capital is the total capital minus your loss, and generally there is still a part left
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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)
that is, through an equal number of futures transactions with opposite directions to offset the original futures contract, so as to end the futures transaction and relieve the obligation of physical delivery when it is e. This kind of buying back a sold contract or selling a bought contract is called closing out
the common functions of short selling include speculation, financing and hedging. If the market is expected to fall in the future, sell high and buy low to obtain profit margin. Financing is short in the bond market and return in the future, which can be used as a way to borrow money
the number of contracts in futures is not fixed. When you open more than one, you may receive more orders from others (multiple orders change hands, the total number of contracts remains unchanged), or you may open against empty orders (double orders, contracts increase by 1 pair)
when you close a position, the same thing happens. It may be that someone else gives you more orders, that is to change hands (the number of contracts remains unchanged and the total number of positions remains unchanged), or it may be short buying to close a position, that is, double leveling. That is, the number of contracts (positions) decreased by 2
in stock index futures, there are essential differences between closing, clearing and shorting
stock index futures can make two-way profits. Both open positions can be long, or short
simple explanation: make money by going long and make money by going short
closing is relative to opening. In the stock market: buy = open position, sell = close position, close position will you buy the stock index futures to sell is the end.
close out refers to the behavior of a futures trader to buy or sell a futures contract with the same type, quantity and delivery month as his futures contract, but in the opposite direction, and close out the futures transaction. The whole process of futures trading can be summarized as position building, position opening, position closing or physical delivery. After the establishment of a position, there is no open position contract, which is called open position contract or open position, also called position. After a trader builds a position, he can choose two ways to close the futures contract: either close the position at the right time, or keep it until the last trading day and make physical delivery. Operation process: bullish market → buy opening → sell closing; Bearish market → sell opening → buy closing.
The client entrusts the securities lending and pays the margin to the securities firm according to the legal proportion. The securities firm sells the securities for the client and completes the delivery with the securities lent to the client. The proceeds from selling securities are deposited with the securities firm as a deposit for customers to borrow securities. When the price of the securities sold by commission rises, the securities firm should recover the increased margin from the short selling customer, otherwise it will buy back the securities with the mortgage to close the position
when the securities fall to the expected price, the customer will buy back the securities and return them to the securities firm. If the customer fails to repay the borrowed securities on time, the securities firm can forcibly use the mortgage to close the position on behalf of the customer
in the case of judging that the market will fall at a high level, borrowing other people's shares to sell in advance, and then buying them back at a low level to close out the borrower's position to make a profit, which is the reverse operation of the current buying stock to make a profit by rising, because it makes a profit by falling, it will attract a large number of funds to enter the bear market to short
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short selling is a risky business for both investors and the securities market. Because when investors short sell, they don't own the stocks they sell, they need to borrow from the people who own the stocks, and the final return of the stocks is to buy them at the current price. When investors have wrong information or judgment, if the stock price continues to rise and the transaction is light, it is difficult to predict when to complete the transaction and stop the loss
from the other side, the short selling mechanism also has the negative effect of disrupting the market. Short selling not only reces transaction costs through margin trading, but also creates virtual supply and demand. This will lead to the distortion of market signals, bring negative effects to the market, and even accelerate the decline of the market to some extent
when there is a large number of short selling in the market, on the one hand, it will make investors short of the market and unwilling to enter the market; At the same time, a large number of short selling will lead to the follow-up short selling behavior, and even cause the panic of investors, causing a large number of stock selling, thus causing the market turbulence
shorting is a common operation mode in the stock futures market. The operation is to expect that the stock futures market will have a downward trend. The operator will sell the chips according to the market price and buy them after the stock futures fall to earn the middle price difference. Short is the reverse operation of long. Theoretically, it is to sell by borrowing and then buy and return
position closing is a term derived from commodity futures trading, which refers to the transaction behavior of one party of futures trading in order to cancel the futures contracts previously bought or sold. 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
short position refers to the state that investors sell all their commodities (such as commodities, raw materials, stocks, futures, currency procts, etc.) and hold cash without commodities.
