Buying and selling a futures contract in the futures market is equivalent to signing a forward delivery contract. If traders keep futures contracts until the end of the last trading day, they must settle futures transactions by physical delivery or cash settlement.
Refers to investors buying coins when they judge that the price of coins will rise. Investors gradually expand the scale of securities investment in a period of time according to their own judgments on the market or suggestions from investment analysts.
Closing position refers to the behavior of futures traders buying or selling futures contracts with the same variety, quantity and delivery month, but in the opposite direction. Simply put, it means "sell what they originally bought and buy what they originally sold (short)."
Only a few people make physical delivery, and most speculators and hedgers generally choose to sell their futures contracts or buy back their futures contracts before the end of the last trading day. That is to say, the original futures contract is written off by a futures transaction with the same amount and opposite direction, thus ending the futures transaction and relieving the obligation of physical delivery at maturity. This behavior of buying back a sold contract or selling a bought contract is called liquidation.
Closing position refers to the behavior of futures investors to buy or sell stock index futures contracts with the same variety, quantity and delivery month, but in the opposite direction, in order to close the stock index futures trading. It can also be understood as: liquidation refers to the trading behavior of traders, and the way of liquidation is to hedge the position direction.
Closing a position in futures trading is equivalent to selling in stock trading. Because futures trading has a two-way trading mechanism, there are two kinds of closing positions: buying and closing positions (corresponding to selling and opening positions) and selling and closing positions (corresponding to buying and opening 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.
There are many reasons for compulsory liquidation in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions and other irregularities, temporary changes in policies or trading rules, etc. In the standardized futures market, it is most common that customers are forced to close their positions because of insufficient trading margin. Specifically, it refers to the behavior that a futures company forcibly closes some or all of its customers' positions in order to avoid losses. When the trading margin required by the customer's position contract is insufficient, the futures company fails to add the corresponding margin in time according to the futures company's notice or actively reduce the position, and the market situation is still developing in an unfavorable direction, the obtained funds are used to fill the margin gap.
Stop-loss liquidation: in the case of a certain profit, increase the cost of stop-loss protection, and then increase the stop-loss according to the technical pattern with the development of the market until the stop-loss is eliminated. This method is suitable for unilateral market.
2. Close the position at the second top: close the position when it is observed that the price cannot reach a new high and there are signs of falling back. This liquidation method is an improved and upgraded version of the stop-loss liquidation method, which can grasp the due profit to the greatest extent.
3. Close the position with resistance: close the position when the price reaches or is about to reach the next resistance level, without waiting for the impact result. This method is suitable for market volatility or fishing callback to grab a rebound. When it comes to unilateralism, most obstacles are ineffective and many profits will be missed.
4. Target liquidation: treat each order as a gamble with high odds, and set stop loss and take profit at the same time. The take profit target is at least three times of the stop loss, and adjust the opening position according to the fixed loss amount. When holding a certain profit, the cost of stop loss protection increases. Assuming that the profit-loss ratio is 3: 1 (this is the minimum value), as long as the success rate of making orders reaches 25%, the breakeven point can be reached. Assuming the success rate is 7: 3, the overall ratio of the system is (7 * 3): (3 * 1), which is 7: 1. This method is also most suitable for volatile markets.
Lightening positions refers to selling some of the shares held.
Heavy volume lightening: a stock rises, with a large amount of trading volume, and buyers and sellers confront each other. If we emphasize the principle of prudence, we can lighten our positions and wait and see.