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For example, what does liquidation mean? How to calculate?
Closing a position refers to the end of the transaction.

Can be divided into

Buying and selling positions.

Closing positions corresponds to opening positions (buying and selling).

When buying a contract to open a position, if it is necessary to terminate the transaction, you can sell and close the position.

For example, it is June 65438+ 10, and you buy a copper futures contract in March. By February, copper futures contracts have risen, and you can sell them for profit (hedging), and vice versa.

When you open a position by selling a contract, you can buy and close the position if you need to terminate the transaction.

For example, it is 65438+ 10 month, and you sell the copper contract in March. By February, copper futures contracts have fallen, and you can buy and close positions (hedge) for profit, and vice versa.

in short

Closing a position refers to terminating the transaction, that is, selling flat when buying and buying flat when selling.

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