Build a position when you open a position. There are usually two modes of operation in trading, one is to go long (buyer) when the market is bullish, and the other is to go short (seller) when the market is bearish. Whether it is long or short, placing an order is called "opening a position". It can also be understood that in trading, whether buying or selling, any new position is called opening a position.

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Position

Position means that before physical delivery or cash delivery expires, investors can voluntarily decide to buy based on market conditions and personal wishes. Enter or sell futures contracts. However, if an investor (long or short) does not perform a reverse operation (sell or buy) with the same delivery month and quantity, and holds a futures contract, it is called a "position." In commodity futures operations such as gold, whether buying or selling, any new position is called opening a position. After the operator opens a position, he holds the position in his hand, which is called a position.

Positions are subject to the following restrictions:

1. Newly opened contract account options contract account right position limit: 20 contracts, total position limit: 50 contracts, single-day cumulative position limit: 100 sheets.

2. Customers whose contract account has been opened for one month and whose trading volume of options contracts reaches 100 contracts shall have Level 3 trading authority, their risk tolerance is Advanced level and the evaluation date is within one year of the rights position limit. : 1,000 contracts, total position limit: 2,000 contracts, cumulative single-day position limit: 4,000 contracts.

3. The risk tolerance is aggressive and the assessment date is within one year.

(1) The contract trading volume reaches 500 and the balance of its own assets in custody at GF Securities exceeds 1 million, rights position limit: 2,000, total position limit: 4,000, single-day cumulative position limit: 8,000; (2) The contract trading volume reaches 1,000 and the balance of its own assets in custody at GF Securities exceeds 5 million rights Position limit: 5,000 contracts, total position limit: 10,000 contracts, single-day cumulative position limit: 10,000 contracts. If you need to check the position limit.

Liquidation

Liquidation refers to the collective term for the behavior of long sellers selling the purchased stocks or short sellers buying back the sold stocks in stock transactions. The purpose of selling a stock long and buying a stock short is to earn profit from the price difference. Closing the position promptly when the market is favorable is crucial to realizing profit from the price difference or avoiding losses when the market reverses.

Covered opening is a portfolio strategy in options trading. That is to buy an underlying security and sell a corresponding call option at the same time to increase the covered position.

It should be noted that although investors who use covered positions to open positions can earn premiums and reduce the cost of holding positions, if the stock rises and the options rise accordingly, and the buyer of the call option requests to exercise the option, then Investors who open a covered position need to fulfill their obligations, which is equivalent to the income from buying the underlying being offset by the exercise cost of the call option, and the maximum return is the premium.