Open position:

Refers to the quantity of a commodity futures contract that has not been hedged and delivered in kind after buying or selling, also known as the quantity of open contracts or short positions. Buyers and sellers of open contracts are equal, and open positions are only the sum of buyers and sellers. If both the buyer and the seller are new positions, two contracts will be added; If one party opens the position and the other party closes the position, the position remains unchanged; If the buyers and sellers close their positions, the positions will be reduced by 2 contracts. When the next opening quantity is equal to the closing quantity, the positions held will remain unchanged.

Since the open contract refers to the number of contracts that have not been hedged and settled during the period from the beginning of the transaction to the end of the open contract, the more open contracts, the greater the sum of closed contracts and physical delivery before the contract expires, and the greater the transaction volume. Therefore, the analysis of the change of positions can infer the flow of funds in the futures market. The increase in positions indicates that funds flow into the futures market; On the contrary, it means that funds are flowing out of the futures market.

Volume:

In the futures market, because both buyers and sellers may open or close positions, the trading volume contains information of different combinations of buying and selling, opening and closing positions, so the trading volume in futures contains much more information than that in stocks. In China, the trading volume of futures is the sum of the trading volume bought and sold in the same day, which is calculated in two directions, that is, half of the trading volume is bought and half is sold.

In the futures market, the relationship between volume and price is similar to the stock market, that is, the level of trading volume is a strong or urgent evaluation of the market behind the price movement. The greater the transaction volume, the greater the intensity and pressure of the market. Generally, the direction of price movement can be verified by analyzing the relationship between price change and volume, that is, whether the price change follows the original trend or reverses, or the intensity weakens.