A bull market → buy and open positions → sell and close positions → sell and open positions → buy and close positions 1. Opening a position, also known as opening a position, refers to the new purchase or sale of a certain number of futures contracts by traders. 2. Closing positions can be divided into hedging closing positions and compulsory closing positions. Hedging liquidation refers to the liquidation of futures contracts previously sold or bought by futures investment enterprises by buying futures contracts on the same futures exchange and selling futures contracts in the same delivery month. Forced liquidation refers to the forced liquidation of the position of the holder by a third party other than the holder (futures exchange or futures brokerage company), also known as liquidation or liquidation. 3. Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. When the market changes greatly, if most of the funds in the investor's margin [1] account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position due to the leverage effect of margin trading. If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse. 4. shorting is the investment term of stocks and futures. For example, when you expect a stock to fall in the future, sell the stock you own when the current price is high (the actual transaction is to buy a put contract), and then buy it when the stock price falls to a certain extent and return it to the seller at the current price, so the difference is your profit. Short selling is a way of operation in the stock and futures markets. This is the opposite of doing more. Theoretically, it is to borrow goods to sell first and then buy them back. Short selling is simply: if there is no goods, sell them first and then buy them. For example, when you see 10 yuan's A shares, it is analyzed that its market outlook will fall to 8 yuan in a certain period of time, but you don't hold A shares. At this time, you can borrow some A shares from A-share holders and sign an agreement to return these borrowed shares to the original holders within a certain period of time. Suppose you borrow 100 A shares and sell them at the price of 10 yuan. Get 1000 yuan in cash. If the stock really falls to 8 yuan within the specified time, you use 8 yuan to buy 100 A shares, spend money to buy 800 yuan, and return 100 shares to the original holder. The number of shares of the original holder did not change in the end, but you earned 200 yuan cash. However, if the stock price rises to 12 yuan, you should buy 100 shares A at the price of 12 yuan, spend 1200 yuan, and return 100 shares to the original holder. The number of shares of the original holder has not changed, so you are short of 200 yuan cash.