Type:
(1) Single currency open position refers to the sum of spot net open position, forward net open position and adjusted option position of each currency, reflecting the foreign exchange risk of a single currency.
① Net spot opening. Spot net open position refers to the open position formed by the business included in the balance sheet, which is equal to the spot assets in the table MINUS the spot liabilities.
② Long-term net opening. Long-term net open position mainly refers to the open position formed by buying and selling long-term contracts, and its quantity is equal to the bought long-term contract position minus the sold long-term contract position.
3 option opening. The open position of holding options is equal to the total amount of each foreign exchange that banks may need to buy or sell because of holding options.
(4) Other open positions, such as foreign currency-denominated guarantee business and similar commitments, should be recorded in foreign exchange open positions if they can be used passively and irrevocably.
Add up the above four elements and you will get a single currency opening position. If the open position of a foreign exchange is positive, it means that the institution is in a long position in the currency; If the open position of foreign exchange is negative, it means that the institution has shorted the currency.
(2) Total open position
The first method is the cumulative total open position method. The accumulated open position is equal to the sum of all foreign currency long positions and short positions. This measurement method is conservative.
The second is the net total opening method. The net total open position is equal to the difference between all foreign currency long positions and short positions. This measurement method is more radical.
The third method is short side method. First, add up the long position and short position of each foreign exchange (called the sum of net long position and net short position respectively); Secondly, compare the two totals; Finally, take a larger total as the total opening amount of the bank. The advantage of short-side method is that it not only considers the risks of bulls and bears, but also considers the compensation effect between them.