Open position is a futures term, also known as open position, which means that traders buy or sell a certain number of futures contracts. In the stock market, the meanings of opening position, closing position and holding position are the same as above. Simply put, these three meanings are: buy, sell and continue to hold shares. According to the definition of open position, it can be divided into two types: buying open position and selling open position.

Buying a position: refers to buying more than one order when placing an order, that is, bullish and bullish index.

Selling and opening position: refers to buying an empty order when placing an order, that is, bearish or bearish index.

The whole process of futures trading can be summarized as opening positions, holding positions, closing positions or physical delivery. 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. However, 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. An open contract after opening a position is called an open contract or an open contract, also known as a position. After opening the position, traders can choose two ways to close the futures contract: either choose the timing of closing the position or reserve it for physical delivery on the last trading day.

The first step is to use the foreign exchange moving average to judge the position direction. When investors speculate in foreign exchange, they should choose the most suitable moving average system according to their own preferences in the technical analysis of this paper, and use this moving average system to judge the direction of their positions. It is worth noting that when analyzing the foreign exchange trend with the moving average chart, the small period should be consistent with the large period, in order to accurately judge the fluctuation trend of the exchange rate.

The second step is to judge the support level and resistance level by drawing lines. The tools recommended here are mainly Feifei-Polacci line and channel line, and the important support level is also the main basis for our stop loss judgment;

The third step is to judge the speed by using the K-line chart of foreign exchange. The main thing to do here is to judge the strength comparison between multiple parties and empty parties in the foreign exchange market, mainly using some K lines and K lines;

The fourth step is to make further improvement by using indicators. At this point, we need to use some indicators, such as RSI and KDJ, to further determine the appropriate entry point. At this time, these indicators are mainly used for assistance;

The fifth step is to assume the way to deal with various situations. The main thing we need to do here is to determine the exit point and exit point. Because we may encounter various situations when foreign exchange fluctuates, we should assume the way to deal with these situations;

Step six, calculate the risk ratio of this position. Usually when the risk ratio is 1 to 1.3, you can open a position.

The seventh step is to formulate specific trading strategies. After the above links are over, you can formulate specific trading strategies. At this time, it is necessary to judge the specific stop loss price and take profit price. After the trading strategy is formulated, the set stop-loss price should not be easily modified.