In futures trading, it involves leveling before the market opens. Literally speaking, closing the position first means opening the position first and then closing the position, which seems to be very common in operation and seems to be the usual closing position. However, in a specific period, leveling before opening the gate has different meanings. If the discussion is near the maturity date, there is a big difference between closing the position before closing the position and closing the position.

What's the difference between opening a position after closing it first and opening it?

When the futures contract is about to expire, it is to close the original position and open the position in the same direction on the far-month futures contract, indicating that investors' views on the market outlook remain unchanged. The purpose of investors is to prevent the exchange from forcibly closing the position and continue the previous position; Opening a position refers to opening a new position, which may be a continuation of the old view, or it may be that investors have a new view and the opening direction is different.

As we all know, futures have a delivery date, and individual investors generally cannot hold future positions to enter the delivery date (except for some financial futures), so there will be the last trading day before the delivery date, and the exchange will force investors holding future positions to close their positions on the last trading day; Moreover, the closer many futures varieties are to the delivery date, the greater the fluctuation will be, and the exchange will set a higher margin ratio, so it needs to be leveled before the opening.